Jet fuel prices in New York and Los Angeles are climbing back toward $5 a gallon as Ukrainian attacks on Russian refineries and curtailed Middle East shipments of refined products weigh on supplies.
Airline fuel costs in the two biggest American cities have ticked up, even though Gulf Coast prices — the benchmark region for the US — have eased slightly from last month . Jet fuel was $4.95 a gallon in New York on Thursday, its highest since late March, while prices in Los Angeles rose to $4.91, the highest since late April.
The soaring prices threaten to raise the cost of flying and push airline fuel bills even higher, weighing on inflation and the travel industry. Delta Air Lines Inc. said Friday it expects to absorb approximately $6 billion in additional fuel costs this year compared to 2025, according to its earnings outlook · . In the upcoming quarter, the carrier projects a fuel price of $4.25 a gallon.
Delta is better insulated from war-related price spikes thanks to its ownership of an oil refinery and a focus on premium customers. Still, higher ticket prices are expected to persist for an extended period.
While supplies of diesel have come under the most pressure both internationally and in the US — stockpiles sit at their lowest seasonal levels on record — the price of jet fuel and diesel are closely tied. Both fuels are “middle distillates” produced in similar refining processes, so additional diesel production can pull away from jet fuel output, and vice-versa.
Jet fuel production, which soared between April and September, has fallen back near March levels. Stockpiles, while still robust, are no longer at seasonal records seen in July and August.