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Surging jet fuel is eroding airlines’ revenue gains, keeping fares high and squeezing profits

Airlines’ pricing gains are being offset by sharply higher fuel bills, limiting the benefit to profits even as fares rise. Ryanair CEO Michael O’Leary warned that elevated fuel costs tied to the Iran war could persist into 2028, while analysis of cargo operations also finds higher jet fuel weighing on flight profitability.

Discovered 2026-10-08T06:35:19.325995-07:00 | 2026-10-08T06:35:19.325995-07:00

Briefing

What Hype is tracking

Higher fuel costs are absorbing much of airlines’ recent pricing and revenue gains, putting pressure on profitability across passenger and cargo operations.
O’Leary’s warning that elevated costs could continue into 2028 underscores the potential duration of the shock; airlines may face sustained fare pressure and differing abilities to absorb costs.

Reported By

RTE Skift lefigaro.fr Leeham News