Four major US airlines face an estimated $11 billion in additional jet fuel costs this year after the Iran conflict sent prices soaring. American Airlines, United, Delta, and Southwest all abandoned fuel hedging strategies years ago, leaving them exposed when the Strait of Hormuz closure triggered a nearly 60 percent price spike in US jet fuel.

Jet fuel prices have fluctuated wildly, reaching $3.95 per gallon before easing to $3.40, while the government raised its 2026 average price forecast by 37 percent to $2.67 per gallon. At current levels, the four carriers face roughly $280 million in extra fuel costs weekly. Fuel typically accounts for about a quarter of airline expenses, making this surge particularly painful.

European carriers have largely hedged their fuel purchases, with Ryanair, Lufthansa, and Wizz Air protecting over 80 percent of their coming quarter's needs. In contrast, American, Delta, and United scrapped hedging a decade ago, while Southwest ended the practice just last year after paying $157 million in hedging premiums during 2024. Analysts note that low-cost carriers like Frontier and Spirit face greater vulnerability due to cost-sensitive customers.