Jet fuel doubled in two months, pushing carrier expenses to unsustainable levels. Delta spent $400 million extra on fuel in March alone, while United projects $11 billion in additional annual costs against $5 billion in its best-year profit.
United raised bag fees by $10 and cut summer capacity 5% - JetBlue followed suit on fees. At current trajectories, fuel costs will dwarf profits unless fares rise sharply.
United's CEO acknowledged publicly that fuel consumption erodes margins faster than historically expected. Carriers are preparing for $100+ oil through 2027.
Delta reported five best-sales days on record since the fuel crisis began, suggesting consumers accept price increases when framed against capacity constraints. Airlines will cut routes, raise fees aggressively, and reduce flights - passing costs to passengers rather than absorbing them.
Second-quarter earnings calls will reveal whether airlines can pass through enough fuel costs to protect margins. Delta's record sales days suggest they can.
