Overview
- Alaska Air forecast a deeper first-quarter loss, citing a jump in fuel to about $3 a gallon and softer demand on Mexico and Hawaii routes.
- United is modeling Brent as high as $175 a barrel, a move that tracks jet fuel’s rise to about $4.24 a gallon from $2.50 before the first strikes on Iran.
- Carriers across regions are raising fares, adding fuel surcharges, trimming schedules, and in Asia rerouting and cutting costs to keep price‑sensitive travelers from dropping away.
- Cathay Pacific lifted fuel surcharges twice in a month, with a Sydney–London return now carrying about $800 in surcharges, and United said fares may need to climb 20% to cover fuel.
- Moody’s said low‑cost and ultra‑low‑cost airlines are most exposed, noting JetBlue, Spirit, and Frontier were already unprofitable last year, and Spirit warned a sustained spike could upend creditor talks and force liquidation.