Jet-fuel costs stay elevated; Delta results loom for AAL
Sustained elevated jet-fuel costs (+84% YoY in May) and ongoing geopolitical risks pressure airline margins; near-term guidance from Delta's results could reinforce sector headwinds for AAL.
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Sustained elevated jet-fuel costs (+84% YoY in May) and ongoing geopolitical risks pressure airline margins; near-term guidance from Delta's results could reinforce sector headwinds for AAL.
What happened, with direct paths to the underlying reporting
U.S. airlines spent $6.66 billion on jet fuel in May, up 84% year over year, driven by higher prices rather than demand. The May average price was $4.09/gal, with consumption down 0.6% to 1.627 billion gallons, signaling margin pressure from fuel costs. Delta's upcoming Q2 results will shape near-term guidance for peers, including AAL.
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