United Airlines reported on Wednesday that it expects to spend an additional $6 billion on jet fuel this year due to rising energy prices. In its second-quarter earnings release, the carrier disclosed that fuel expenditures for the period rose by $2.3 billion, an 84% increase compared to the same quarter last year. Fuel currently represents the airline's second-largest operating expense after labor costs.
Delta Air Lines also reported a significant increase in fuel costs for the second quarter, spending $4.4 billion, which is a 77% rise year-over-year. Delta CEO Ed Bastian noted that despite higher operating costs, consumer demand for air travel remains robust, particularly among higher-income households. Both airlines have maintained elevated ticket prices to mitigate the impact of these expenses.
Industry data from the Argus U.S. Jet Fuel Index showed that jet fuel prices reached a record high of nearly $5 per gallon in April before moderating to $3.64 per gallon this week. To address the volatility, carriers have implemented measures including higher airfares, fuel surcharges, increased baggage fees, and the removal of less efficient flight routes. Other major U.S. airlines are scheduled to report their quarterly financial results later this month.