A rapid surge in jet fuel prices is weighing on the financial outlook of major US airlines, highlighting the industry's vulnerability to rising operating costs even as passenger demand remains strong.

American Airlines has become one of the clearest examples of the pressure. Earlier this month, the carrier was preparing to raise its 2026 earnings forecast, but reversed course less than two weeks later after its projected fuel bill for the remainder of the year increased by nearly $1.6 billion.

The airline said fuel prices can rise much faster than airlines are able to increase fares, since higher ticket prices only apply to future bookings and typically take weeks or months to influence revenue.

Although strong travel demand and disciplined capacity growth have enabled carriers to raise fares, the additional revenue has only partly offset soaring fuel costs.

Jet fuel spot prices climbed almost 30% between July 2 and July 22 as the ceasefire between the United States and Iran began to weaken, adding fresh uncertainty to the aviation industry's financial outlook.

American Airlines Chief Financial Officer Devon May told Reuters that the industry is likely to face weaker profit margins if fuel prices remain elevated.

"If we had guided on the same day as Delta, we'd have been guiding up for the year," May said.

Earlier in July, American expected full-year pretax earnings to approach $1.5 billion, roughly four times its 2025 result. However, the airline has since revised its guidance to a range stretching from a loss to a profit, with break-even at the midpoint.

The revised outlook came despite American reporting record quarterly revenue and forecasting stronger unit revenue growth during the second half of the year. The airline warned that persistently high fuel prices could slow debt reduction efforts, limit investment and increase pressure to reduce less-profitable routes.

Other major US airlines have responded differently depending on when they issued their forecasts.

Delta Air Lines maintained its full-year earnings outlook, while United Airlines raised the lower end of its guidance. Southwest Airlines lowered the bottom end of its forecast, and Alaska Air declined to reinstate full-year guidance.

The differences largely reflect the fuel price assumptions used by each airline. Delta based its outlook on fuel prices from July 2, while American used prices from July 21. During that period, jet fuel spot prices rose by 78 cents to $3.59 per gallon, rapidly changing the industry's cost outlook.

American said higher fares offset nearly half of its $2.2 billion year-on-year increase in second-quarter fuel expenses. Delta recovered about 60% of its additional fuel costs, while United recovered roughly half. Alaska reported recovering only a small portion of its increased fuel bill, while Southwest did not disclose a comparable figure.

May said American's projected fuel costs for the rest of the year increased by about $550 million in just one week. According to the airline, every one-cent increase in its average fuel price adds around $46 million to annual operating costs, meaning a 10-cent increase would raise expenses by approximately $460 million.

United Airlines also cited the rapid rise in fuel prices when updating investors. Chief Executive Scott Kirby said the company had expected year-on-year earnings growth before fuel costs surged in the days leading up to its earnings announcement.

United estimated that higher fuel prices since July 1 would add about $575 million to its third-quarter fuel bill and said it has revised its guidance policy to reflect the latest available fuel prices.

Alaska Air said booking demand for September and October remains strong but acknowledged that profitability remains highly sensitive to fluctuations in fuel costs.

American said it will continue seeking to recover as much of the higher fuel expense as possible through fare increases, although the proportion it can pass on to customers will depend on future fuel price movements.

Source: Reuters

Malaysia Aviation Group, the parent company of Malaysia Airlines, is considering whether to introduce a green tax on passengers to help cover the rising cost of sustainable aviation fuel (SAF), potentially adding to airfares.

Group chief Capt. Nasaruddin A. Bakar said Monday that the company was examining different options as airlines worldwide seek to reduce carbon emissions while facing high SAF prices and limited supplies.

“We are looking at all options,” Nasaruddin told The Associated Press on the sidelines of an aviation sustainability conference. He stressed that both passengers and airlines needed to be able to afford the transition to cleaner fuel.

Singapore, Malaysia’s neighbour, has already announced a government-mandated green aviation levy set to take effect in January 2027. Charges will vary according to destination and cabin class, making Singapore the first country to announce such a measure.

The aviation sector faces growing pressure to address its environmental impact as global air travel demand increases. The International Energy Agency estimates that aviation accounts for about 2.5% of annual global carbon emissions, while the UN-backed International Civil Aviation Organization has established a goal of achieving net-zero carbon emissions by 2050.

According to the aviation organisation, sustainable aviation fuel could reduce the industry's emissions by around 65%.

SAF is typically made from renewable materials, including used cooking oil, waste fats and agricultural residues. It can be blended with conventional jet fuel and used in existing aircraft without requiring changes to their engines.

However, its widespread adoption remains constrained by higher production costs, limited manufacturing capacity and restricted access to sustainable raw materials.

The International Air Transport Association estimates that SAF currently represents less than 1% of global jet fuel consumption, highlighting the scale of the challenge facing airlines as they work towards their emissions targets.

Source: Associated Press

SalamAir has entered into a distribution agreement with travel technology company Amadeus as the Omani low-cost airline steps up efforts to expand its international presence and reach new customer segments.

Under the agreement, travel sellers connected to the Amadeus Travel Platform will gain access to SalamAir's fares and services, allowing the airline to expand its distribution network and improve the availability of its products across global markets.

Steven Allen, chief commercial officer of SalamAir, said the partnership would support the airline's growth ambitions by strengthening its international market presence and making its services more accessible to travellers seeking affordable air travel.

The agreement forms part of SalamAir's broader strategy to diversify its sales channels, increase its global visibility and respond to rising travel demand across its expanding network.

Maher Koubaa, executive vice-president of the Travel Unit and managing director for Europe, the Middle East and Africa at Amadeus, said the partnership reflected the company's commitment to supporting the low-cost airline sector. He added that Amadeus' technology solutions were designed to help low-cost carriers expand and compete in international markets.

Source: Oman Daily Observer

Emirates is expanding its Dubai-Durban schedule with 14 additional flights during the 2026-27 festive season, offering travellers more options during one of the busiest periods of the year.

The additional services will operate as a second daily flight between December 17 and 23, 2026, and January 2 and 8, 2027. The airline will deploy a three-class Boeing 777 on the route.

Flight EK2535 will depart Dubai at 04:00 and arrive in Durban at 10:30. The return service, EK2536, will leave Durban at 12:15 and land in Dubai at 22:30.

Emirates' existing daily flights, EK775 and EK776, will continue to operate according to their regular schedules.

The airline is also providing flexible booking options to help passengers manage changes to their travel plans. Customers booking flights to Dubai can change their travel dates an unlimited number of times without fees across all cabin classes. For tickets to other destinations, passengers are entitled to one complimentary date change.

Emirates' Hold My Fare service allows customers to reserve a ticket price for 24 hours at no additional cost. The airline has also reduced its refund fees.

Source: TradeArabia

Lufthansa has increased fuel loading on flights bound for Frankfurt Airport as a precautionary measure amid tighter jet fuel supplies caused by reduced pipeline capacity.

The airline said on Thursday that the move was intended to manage potential supply constraints at Germany’s largest aviation hub. Airport operator Fraport confirmed that routine maintenance was under way on a pipeline supplying jet fuel to the airport.

Fraport said the maintenance had been factored into its operational planning and was not expected to cause a fuel supply bottleneck. Alternative supply routes and sufficient storage capacity were helping to mitigate potential disruption.

“The airport's operational capability is therefore not affected,” Fraport said.

Lufthansa said it was not currently anticipating any flight cancellations as a result of the situation.

German newspaper Bild first reported the additional fuelling measures, citing internal instructions reportedly issued to Lufthansa pilots on selected routes. The practice, known as “tankering”, involves carrying more fuel than required for a flight so that an aircraft needs less or no refuelling at its destination.

According to Bild, the additional fuel carried by Airbus A320-family aircraft is limited to eight tonnes to ensure the planes can still be towed on the ground. The measures primarily affect short-haul services, although some long-haul flights are increasingly being included.

The precautionary steps are intended to give Lufthansa greater flexibility in managing its fuel requirements while pipeline maintenance continues at Frankfurt Airport.

Source: Reuters

Turkish Airlines has signed a strategic agreement with CFM International to strengthen engine maintenance capabilities and support the expansion of its Boeing 737 MAX fleet.

The long-term services agreement will cover the airline group's entire LEAP-1B engine fleet, including engines already ordered and delivered, spare engines, units installed on leased aircraft and potential future options. The combined total exceeds 600 engines operated by Turkish Airlines and its subsidiary, AJet.

The memorandum of understanding (MoU) was signed during a ceremony in Istanbul by Turkish Airlines Chairman of the Board and the Executive Committee, Prof. Murat Şeker; Turkish Technic CEO and Board Member, Mikail Akbulut; and Safran CEO Olivier Andriès. Safran is one of the two parent companies of CFM International.

The agreement also includes a material services arrangement to support the development of an engine maintenance, repair and overhaul (MRO) facility in Türkiye.

Şeker said the partnership would help Turkish Airlines accommodate fleet and network growth while improving operational efficiency. He added that the expanded services agreement would provide the technical expertise and long-term support required to develop LEAP engine maintenance capabilities.

Akbulut said the agreement would enable Turkish Technic to undertake comprehensive LEAP engine maintenance. He also reaffirmed the company's commitment to investing in engine services alongside its existing aircraft and component maintenance operations.

Andriès described the MoU as another milestone in a relationship with Turkish Airlines that has lasted nearly four decades. He said the agreement reflected both companies' ambitions to support the airline's growth and fleet expansion, while promoting an open MRO ecosystem offering flexible, competitive services to improve operational performance and control costs.

GE Aerospace Chairman and CEO H. Lawrence Culp Jr. also welcomed the agreement, highlighting Turkish Airlines' extensive international network and its confidence in CFM engines. He said the partnership would build on the companies' established relationship as the airline expands its Istanbul operations and engine maintenance capabilities.

Turkish Airlines currently operates 96 Boeing 737 Next Generation aircraft powered by CFM56-7B engines and 79 Boeing 737 MAX aircraft equipped with LEAP-1B engines.

CFM said it had delivered more than 10,000 LEAP engines during the 10 years since the engine entered service, with the fleet accumulating over 100 million flight hours. The manufacturer continues to introduce upgrades, including a high-pressure turbine durability kit designed to extend time on wing and a reverse bleed system (RBS).

The agreement is expected to strengthen Turkish Airlines' long-standing relationship with CFM International and support the integration of newly ordered Boeing 737 MAX aircraft into its expanding fleet. The planned engine MRO facility will also enhance Turkish Technic's ability to provide comprehensive maintenance services.

Source: Turkish Airlines