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

Dubai Aviation City Corporation (DACC) has awarded a contract to develop an automated people mover (APM) system for the first phase of Al Maktoum International Airport, creating what is expected to be the world’s largest airport transit system of its kind.

The contract was awarded to a consortium comprising Japan’s Mitsubishi Heavy Industries (MHI), its Dubai-based subsidiary MHI Mobility Engineering Services (MHI-MESC), and Indian engineering group Larsen and Toubro (L&T).

The APM network will extend approximately 50 kilometers and connect nine stations, making it significantly larger than existing airport people-mover systems.

MHI and MHI-MESC will oversee the design, procurement and testing of 165 vehicles, as well as signaling technology and overall system integration. L&T will be responsible for designing, procuring, testing and constructing the remaining subsystems on site.

The project is scheduled for completion in December 2031.

The scale of Dubai’s planned system will surpass existing airport transit networks, including the approximately 8-kilometer Skylink at Dallas Fort Worth International Airport and The Plane Train at Hartsfield-Jackson Atlanta International Airport.

The APM network will connect Al Maktoum International Airport’s terminals and key facilities, helping improve passenger movement, reduce transfer times and support efficient airport operations.

The project forms part of Dubai’s broader plans to develop Al Maktoum International into one of the world’s largest aviation hubs. The airport is targeted to begin operations in 2032 and is ultimately expected to handle up to 260 million passengers annually.

The planned expansion is designed to accommodate growing regional and international air traffic while strengthening Dubai’s position as a major global aviation hub.

Source: Khaleej Times

Skyway Aviation Handling Company PLC (SAHCO) has reaffirmed its commitment to strengthening cooperation with the Nigeria Customs Service (NCS) to improve the efficiency, security and smooth operation of airport and cargo activities.

The commitment was made during a SAHCO delegation’s visit to AC Adamu, the newly appointed Commander of the Customs Intelligence Unit (CIU) at Murtala Muhammed International Airport (MMIA) in Ikeja, Lagos.

The visit focused on building on the existing relationship between SAHCO and the NCS through stronger communication, closer coordination and enhanced operational cooperation, particularly in the handling and movement of cargo.

Representing SAHCO Managing Director and CEO Adenike Aboderin, General Manager of Cargo Services Donald Adekunle welcomed the new CIU commander and pledged the company’s continued support for a professional and productive partnership with the Customs Service.

Adekunle said closer cooperation between the two organizations would help strengthen airport operations and improve coordination among key aviation stakeholders and government agencies.

He also emphasized the importance of inter-agency collaboration in facilitating efficient cargo movement, reinforcing security procedures and enhancing service delivery across Nigeria’s airports.

The renewed cooperation comes as aviation and government agencies continue to focus on improving cargo-handling processes and maintaining secure and efficient airport operations.

Source: ZAWYA

SHARJAH, UAE: Sharjah Airport has achieved Level 3 Airport Customer Experience Accreditation from Airports Council International (ACI), marking another milestone in its efforts to strengthen passenger services.

The airport first received Level 1 accreditation in 2022 before advancing to Level 2 in 2023 after establishing and implementing a customer experience strategy across its departments. It renewed its Level 2 status in 2025 and progressed to Level 3 in 2026.

Ali Salim Al Midfa, Chairman of Sharjah Airport Authority, said the latest accreditation reflected the airport’s focus on passenger satisfaction and its broader strategy to provide an integrated travel experience centered on quality and service excellence.

He said the achievement also supports Sharjah’s ambitions as a destination for travel, tourism and business.

According to Al Midfa, reaching Level 3 demonstrates the airport’s ability to collect and analyse passenger feedback and work with airport partners to turn that information into practical service improvements.

The accreditation assessment examined how the airport gathers and applies passenger feedback, coordinates with service providers and maintains a seamless passenger experience from arrival through departure.

As part of its progress toward Level 3, Sharjah Airport strengthened its customer feedback systems to better identify passenger expectations, pinpoint areas requiring improvement and respond more quickly to concerns.

The airport also increased coordination with airlines, ground-handling companies and other stakeholders to promote consistent service standards throughout the passenger journey.

Passenger satisfaction reports are now regularly distributed among airport departments, allowing teams to identify successful practices as well as areas requiring further attention. Employees across the airport community are also involved in improving passenger services, reinforcing shared responsibility for the overall travel experience.

ACI established its Airport Customer Experience Accreditation Programme to help airports assess and enhance passenger experience. The programme provides tools and expertise to help airports manage passenger journeys, develop improvement plans and identify opportunities to raise service quality.

Source: QCAA

DOHA, Qatar: Hamad International Airport (HIA) has reaffirmed its readiness to provide a smooth and comfortable arrival experience as passenger numbers increase in Doha following the summer holiday season.

In a statement issued Tuesday, the airport said it expects higher inbound traffic this August as students and families return ahead of the new academic year.

HIA has issued a series of guidelines designed to make arrival procedures easier and improve passenger convenience. Airport staff will remain available around the clock to assist travelers and their families, it said.

The guidance covers several aspects of the arrival process, including procedures for families traveling with young children and arrangements for meeting arriving passengers.

It also provides information on transportation options from the airport, including ride-hailing services, taxis, buses and the Doha Metro. Guidance on car rentals and baggage collection is also included.

The airport said the measures are intended to help passengers navigate the arrival process efficiently during the expected increase in traffic.

With August marking a key period for post-holiday travel, HIA is emphasizing operational preparedness and passenger support as more travelers return to Doha.

Source: QNA

JEDDAH, Saudi Arabia: King Abdulaziz International Airport in Jeddah handled approximately 28.55 million passengers on 169,900 flights between the beginning of 2026 and the end of July, according to an airport performance report.

The airport also processed 33.6 million bags during the seven-month period, the Saudi Press Agency (SPA) reported.

The performance report was reviewed by Deputy Governor of Makkah Region Prince Saud bin Mishaal bin Abdulaziz during a meeting attended by Jeddah Airports Company CEO Mazen Johar.

The airport recorded its highest daily passenger traffic on January 17, when around 195,300 passengers passed through its facilities.

During the 1447 AH Umrah season, King Abdulaziz International Airport served approximately 6.16 million passengers on 36,400 flights and handled 7.2 million bags. More than 10,000 employees from various agencies were deployed at the airport during the season.

The report also highlighted the airport’s role during the 1447 AH Hajj season. More than 1.67 million pilgrims traveled through the airport during the arrival and departure phases, with more than 9,600 flights operated and approximately 2.76 million bags handled.

Ground transportation also played a significant role in moving pilgrims during Hajj. Buses carried around 821,700 pilgrims across 22,855 trips, while the Haramain High Speed Railway transported approximately 48,200 pilgrims on 207 trips.

The figures underscore the airport’s importance as a major gateway for pilgrims traveling to Saudi Arabia for Umrah and Hajj, as well as its role in handling growing passenger demand throughout the year.

Source: TradeArabia