The surging price of jet fuel isn’t the airline industry’s only problem. Now, it’s whether it will have enough.

Since the U.S. and Israel attacked Iran on Feb. 28, the price of jet fuel in the U.S. has nearly doubled, going from $2.50 a gallon on Feb. 27 to $4.88 a gallon on April 2, with the increases even sharper in other regions. The effective closure of the Strait of Hormuz is choking off supplies of both crude and refined products like jet fuel, further driving up the price.

That’s forcing airlines to consider cutting flights, especially overseas.

Carsten Spohr, CEO of Germany’s Deutsche Lufthansa, told employees in a webcast last week that the carrier is assigning teams to come up with contingency plans because of the war in the Middle East, including for drops in demand or a lack of jet fuel, a spokesman said. Those plans could include grounding some of its aircraft.

The U.S. produces a lot of jet fuel and isn’t as exposed as other regions like Europe and parts of Asia are in comparison. But aircraft fill up locally, so some U.S. airlines could face shortages on international trips.

United Airlines CEO Scott Kirby told reporters late last month that the carrier, which has the most service to Asia among U.S. airlines, would have to cut back its flights there. He also said it’s “not impossible” that airlines collectively would have to reduce service in that region.

He noted that as the price of jet fuel goes up, it could be more acute in parts of the U.S. that aren’t as connected by pipelines.

“There’s not enough refining capacity, and so fuel price prior to this and going forward is more susceptible to supply weakness on the West Coast than anywhere else in the country,” he said.

Kirby told employees earlier in March that the airline is preparing for oil to stay above $100 a barrel through 2027 and is pruning some of its flights in the near term.

“To be clear, nothing changes about our longer-term plans for aircraft deliveries or total capacity for 2027 and beyond, but there’s no point in burning cash in the near term on flying that just can’t absorb these fuel costs,” he said in a March 20 message to employees.

Airlines overall are pruning some flights for the coming months, though they often adjust schedules throughout the year to match demand, aircraft availability or other complications.

Domestic capacity in the second quarter for U.S. carriers is up 2.1%, down from previous plans of 2.3% growth, while total capacity is set to rise 1.1%, down from 2.4% on the week ended March 20, according to a Monday report from UBS.

“We expect more capacity cuts in the coming weeks,” UBS said.

So far, airline executives have said that travel demand is strong, but the fuel strains and price spikes are a headache for carriers and passengers alike as the peak summer travel season approaches.

Fuel is generally airlines’ biggest expense after labor, and carriers are already raising airfare and fees like for checked luggage to make up for the added cost.

Investors will be listening for more insights into how the jet fuel spike could affect the industry as airline earnings kick off Wednesday with Delta Air Lines. That carrier owns a refinery, so it could benefit from jet fuel sales.

Delta Air Lines and Southwest Airlines are raising checked bag fees by $10 for tickets, the third and fourth major U.S. carriers to increase prices as the industry grapples with a jump in jet fuel expenses this year.

“As part of an ongoing analysis of the business and against the evolving global backdrop, Southwest Airlines is increasing its fees on first and second checked bags by $10, effective on all reservations ticketed or voluntarily changed on or after April 9, 2026,” Southwest said in a statement.

Southwest Airlines ended its policy allowing all customers to check two bags for free less than a year ago.

The changes would bring the fee to check a first piece of luggage to $45, and $55 for a second bag on each airline. Delta’s changes take effect with bookings starting Wednesday and don’t apply to long-haul international travel but domestic flights and shorter flights abroad.

“These updates are part of Delta’s ongoing review of pricing across its business and reflect the impact of evolving global conditions and industry dynamics,” the airline said in a statement Tuesday.

A third bag on Delta would cost $200 to check.

Last week, United Airlines and JetBlue Airways increased their checked bag fees. Other carriers often follow such pricing moves.

Jet fuel in major U.S. cities was going for $4.69 a gallon on Monday, according to Airlines for America, citing Argus data, up nearly 88% since the U.S. and Israel attacked Iran on Feb. 28. The key Strait of Hormuz shipping channel has remained effectively closed over the past month, choking off global crude and refined fuel supplies.

Delta reports first-quarter results before the market opens on Wednesday, and investors are likely to question executives on how well they are covering the surge in fuel, airlines’ biggest expense after labor. Analysts have pointed to strong demand as a salve for high fuel, but it’s not clear that carriers will be able to cover the entirety of the fuel price run-up.

Does it matter where you sit if you’re sipping Champagne in first class? United Airlines is betting that for some travelers looking for luxury at a discount, it doesn’t.

The carrier is launching new, cheaper tiers for its top-end Polaris and premium economy cabins that come with many of the same perks — but plenty of restrictions too.

Starting this spring, United will offer “Base” Polaris fares which will include a spot in the airline’s long-haul business class cabins featuring lie-flat seats, but will charge those customers extra for advanced seat selection.

The new ticket class will also come with only one checked bag instead of two, and with access to the United Club airport lounge but not the higher-end Polaris lounge, which include showers and other plush features. Ticket changes aren’t allowed.

The other categories for Polaris will be “Standard” and the more expensive “Flexible” option that allows for customers to pay up for the new, more spacious Polaris Studio suites.

The new fares show that United — and perhaps soon, other airlines — are dividing up the front of the plane into smaller categories, just as they have with coach over the past decade, from restrictive basic economy tickets to extra legroom fares.

United’s new strategy comes as it overhauls its nearly decade-old Polaris class with new suites that feature sliding doors and bigger screens, while customers continue to show their willingness to pay more to fly in better seats. United and its competitors have been racing to add more premium seating on its planes, sometimes removing some economy seats to do so.

A spokeswoman for United said customers in Base Polaris would get the same meals — including ice cream — as other passengers in the cabin. She declined to say what the price differences between the fares will be, but said the Base Polaris fare is meant to be an entry-level point for the premium class.

United is also launching similar segmentation for its premium economy class, Premium Plus.

The new options will be available in certain markets starting this month and will expand to other international and long-haul domestic markets later this year, United said.

Rival Delta Air Lines last year said it was also considering segmenting front-of-the-plane cabins.

The U.S. was searching for the crew of an American fighter jet Friday after it was downed in Iran, a U.S. official told MS NOW.

It isn’t clear if the plane was shot down or went down for another reason, MS NOW said. The jet was an F-15, which has two crew members, and the whereabouts of the servicemembers was unknown, according to MS NOW.

The Pentagon and U.S. Central Command didn’t immediately comment.

The New York Times said Iran shot down the fighter jet, citing U.S. and Israeli officials and Iranian state media, though MS NOW said it hadn’t independently verified the reporting.

It appeared to be the first known loss of a U.S. jet in the country since the war in Iran started in late February.

The downing of the jet comes at a delicate time, when the U.S. has showed few signs of slowing its assault on Iran and reports of potential peace talks did not yield a breakthrough. The death toll from the conflict is nearing 5,100 across the Middle East, according to MS NOW.

The war has now gone on for more than a month, suffocating tanker traffic through the critical Strait of Hormuz and threatening supplies of crude oil, fertilizer and other key commodities.

President Donald Trump claimed in a social media post Friday that the U.S. could “easily” open the strait, “TAKE THE OIL, & MAKE A FORTUNE.”

Trump also threatened late Thursday to escalate attacks on Iranian infrastructure. He said the U.S. “hasn’t even started destroying what’s left in Iran,” citing bridges and electric power plants.

In remarks Wednesday, Trump said the U.S. would attack Iran “back to the Stone Ages.”

The sprawling Middle East crisis is expected to spur drivers to abandon traditional internal combustion engine vehicles in favor of EVs, analysts told CNBC, although early evidence suggests this will be a gradual gearshift.

The Iran war has severely disrupted oil exports through the strategically vital Strait of Hormuz, which typically carries about a fifth of the world’s oil and liquified natural gas (LNG). It has underlined the extent to which the world remains deeply reliant on fragile fossil fuel trade routes, while surging oil and gas prices have jolted energy markets and triggered widespread inflation fears.

Various car-selling platforms in the U.S. and Europe have reported a sharp increase in consumer interest for EVs since the war began in late February. The burgeoning trend comes even as a large chunk of the legacy car industry pivots back to internal combustion engine (ICE) vehicles.

Autotrader, an online vehicles marketplace, reported on March 26 a 28% jump in inquiries about buying a new EV and a 15% increase in inquiries about buying a used one, since the war in Iran started on Feb. 28. EV specialist Octopus Electric Vehicles said on March 25 it had seen EV leasing inquiries rise 36% since the start of the conflict.

But U.S. automakers Ford Motor, General Motors and Jeep owner Stellantis have all reversed course on EV strategies, booking tens of billions of dollars in combined write-offs and restructuring costs, in part due to lackluster consumer demand and shifting political landscapes.

Steffen Michulski, senior consultant at JATO Dynamics, said that while the situation is still evolving, it was already clear that the fallout from the Iran war could influence EV demand.

Owning a battery electric vehicle (BEV) has become more compelling for drivers covering a lot of mileage, Michulski said, given that a sharp rise in oil prices has made conventional gasoline cars much more expensive.

Switching to an EV may also provide households with an extra layer of energy independence, Michulski said, although he cautioned that it would be important not to “oversimplify” the situation. He pointed out that the overall economic environment may soften if inflation and supply chain costs continue to rise, for example, with these broader pressures impacting all powertrains — electric or combustion.

“To shorten and summarize it: Yes, elevated oil prices and the renewed focus on energy security are likely to provide a mid term boost to BEV demand,” Michulski told CNBC by email.

“But this is best understood as an incremental shift rather than a sudden market wide acceleration. Electricity price risks, technological progress on the combustion side, and general economic uncertainty all act as counterweights,” he added.

An analysis published by Transport & Environment earlier this month found that electric cars were already cutting the European Union’s oil imports, noting that the nearly 8 million EVs in the EU will save the bloc around 46 million barrels of oil in 2025. That’s the equivalent of almost 3 billion euros ($3.45 billion) in avoided oil import costs.

In the context of the Middle East conflict, meanwhile, the analysis said that petrol drivers were expected to be five times more exposed to higher oil prices than EV owners.

Poliscanova said EV growth drivers in Asia, notably Vietnam, Thailand and Indonesia, which all benefit from affordable models by Chinese car manufacturers, were all likely to see an accelerated shift away from fossil fuels.

“We’re likely to see an even faster shift in some of these economies away from oil, meaning that we in Europe today, still discussing things like biofuels and hybrids, just look really stupid and detached from the reality,” Poliscanova said.

A spokesperson for the European Commission, the EU’s executive arm, declined to comment.

JetBlue Airways is raising bag fees at least $4 as jet fuel prices soar amid the Iran war.

Airfare has climbed for routes around the world since the U.S. and Israel attacked Iran on Feb. 28. The higher fees for checked bags are the most recent sign of airlines passing steeper fuel costs down to U.S. consumers. Jet fuel is airlines’ biggest expense after labor.

JetBlue now lists the price to check a first piece of luggage for domestic, Caribbean and Latin America flights as $39 for off-peak periods for most economy passengers, up from $35. For peak periods, like much of the summer and major holidays, the fee will go up to $49 from $40.

If paying less than 24 hours before departure, such as at the airport, travelers will pay $10 more. Airlines have charged customers less for prepaying for their checked baggage in recent years.

There are exemptions to the bag fees entirely, however, such as travelers with a co-branded credit card and frequent flyers with elite status.

“As we experience rising operating costs, we regularly evaluate how to manage those costs while keeping base fares competitive and continuing to invest in the experience our customers value,” JetBlue said in a statement to CNBC.

When an airline raises fees, competitors often follow. American Airlines, United Airlines, Delta Air Lines, Southwest Airlines and Frontier Airlines didn’t immediately respond to CNBC’s requests for comment.

Fuel prices for Chicago, Houston, Los Angeles and New York averaged $4.57 a gallon last Friday, up nearly 83% since the day before the war began, according to data from Argus published by industry group Airlines for America.

“Adjusting fees for optional services used by select customers, such as checked baggage, allows us to continue offering more competitive fares while delivering the onboard experience our customers love, including complimentary snacks and drinks, unlimited, high-speed Wi-Fi and seatback entertainment screens,” JetBlue said. “While we recognize that fee increases are never ideal, we take careful consideration to ensure these changes are implemented only when necessary.” 

TOKYO/NEW YORK — Genevieve Price considers herself a great flight hacker.

The 35-year-old naturopathic doctor based in San Diego usually buys basic economy tickets when she visits her family in New Jersey and then uses her Alaska Airlines frequent flier status to pick a seat, something that’s usually not allowed for those no-frills fares.

“I like to travel a lot,” Price told CNBC at New York’s John F. Kennedy International Airport, where she was returning from Rome.

But Price said she has her limits, and is planning to cap the spending she does on future flights, such as no more than $900 to Rome, where her partner is from.

Consumers’ willingness to fly is being put to the test this spring as soaring fuel prices are leading to higher airfares. Cathay Pacific, SAS, Finnair and others are among the carriers that have already raised fares.

Travelers also have to contend with hourslong airport security lines in the U.S. because of the second government shutdown in half a year that’s hitting the Transportation Security Administration, leaving many frustrated.

Fuel at major U.S. airports was going for $3.98 on Wednesday, up nearly 60% since before the U.S. and Israel attacked Iran on Feb. 28.

The conflict has meant crisis for the aviation industry, particularly in the Middle East, where airspace closures have forced carriers to cancel flights and take longer and costlier routes.

Airlines will brief investors starting early next month on the longer-term impacts, but they immediately started raising airfare or increasing fuel surcharges on tickets to help cover the rising costs.

DHS has blamed Democrats for the closure, which has become the longest partial shutdown in U.S. history. As of Friday afternoon, the Senate had passed a potential deal to end the shutdown, thought its fate was unclear.

The U.S. Postal Service on Wednesday said it is seeking to impose a temporary 8% fuel surcharge for package and express mail deliveries to deal with rising transportation costs, which include higher oil prices as a result of the Iran war.

If approved by the Postal Regulatory Commission, the surcharge would take effect April 26 and remain in place until Jan. 17, 2027, the Postal Service said in a notice on its website.

The 8% surcharge would apply to postage on Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select products. First-class stamps and other mail services would not be affected.

Oil prices have jumped more than 40% since Feb. 28, when the United States and Israel attacked Iran.

“This temporary price adjustment will provide needed flexibility for the Postal Service by helping to ensure that the actual costs of doing business are covered, as required by Congress,” the Postal Service said in its announcement.

“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” the notice said.

“We have steadfastly avoided surcharges and this charge is less than one-third of what our competitors charge for fuel alone, so even with this change, the Postal Service continues to offer great value in shipping with some of the lowest rates in the industrialized world.”

CNBC has reached out to the Postal Regulatory Commission for comment on the Postal Service’s request.

President Donald Trump said he’s considering sending the National Guard to U.S. airports, two days after the administration sent Immigration and Customs Enforcement agents to several major U.S. airports following hourslong waits for travelers because of the partial government shutdown.

In a Truth Social post on Wednesday, Trump blamed Democrats for the shutdown, which began Feb. 14.

“Thank you to our great ICE Patriots for helping. It makes a big difference,” he wrote in his post. “I may call up the National Guard for more help.”

More than 11% of TSA officers called out on Wednesday and more than 450 have quit since the shutdown started, the Department of Homeland Security said.

Elevated absences of Transportation Security Administration officers, who are required to work though they’re not getting paid during the shutdown, have contributed to long lines at major U.S. airports, including in Atlanta, Houston and New York.

DHS, which oversees both ICE and and TSA, said the ICE agents will “support airports facing the greatest strain” but the department didn’t respond to requests for comment on what the ICE agents’ duties are. ICE agents are getting paid in the shutdown.

Airlines have been warning customers about potentially long security lines, while executives grow increasingly frustrated with lawmakers about the impasse. On Tuesday, Delta Air Lines said it suspended its airport escorts and other special services for members of Congress and their staff because of the ongoing partial shutdown of the DHS.

The shutdown comes as Democrats in Congress have demanded changes to how federal immigration enforcement operates in exchange for releasing DHS funding after two U.S. citizens were shot and killed by ICE officers in Minneapolis.