Fuel Costs Surge 84%, Global Airlines Respond with Flight Cuts

The U.S. Bureau of Transportation Statistics announced today (7th) that aviation fuel expenditures by American airlines in May 2025 reached $66.6 billion (approximately NT$214.1 billion), an 84% increase compared to the same period last year. This marks the second consecutive month that airline fuel costs have exceeded the $60 billion threshold.

According to the Associated Press, the Bureau of Transportation Statistics reported that fuel expenditures in April 2025 amounted to $64.7 billion (approximately NT$208 billion).

The significant year-on-year increase in aviation fuel costs is not due to higher fuel consumption, but rather to rising fuel prices. U.S. airlines consumed 1.627 billion gallons of fuel in May 2025, a 0.6% decrease compared to May 2024. Fuel usage in April was also slightly lower than the same period last year.

The Bureau stated that the average price airlines paid for fuel in May 2025 was $4.09 per gallon (approximately NT$131), slightly lower than April’s $4.11, but 85% higher than $2.21 per gallon in May 2024.

In response to soaring fuel costs, major airlines worldwide have raised ticket prices and ancillary fees, while also reducing flight frequencies. Fuel is typically one of the largest operating expenses for airlines, making the industry particularly vulnerable to energy price fluctuations.

Latest data indicates that after conflicts erupted in the Middle East earlier in 2025, the Strait of Hormuz—the critical maritime route for global crude oil and fuel transport—was disrupted, causing energy prices to spike, with ongoing ripple effects.

Since the United States and Iran reached a temporary ceasefire agreement, fuel prices have retreated from their spring highs, providing some relief to the aviation sector. However, the ceasefire agreement remains uncertain.

The British military reported that three oil tankers were struck today in the Strait of Hormuz. Additionally, the U.S. has revoked the license that previously allowed Iran to sell oil under the U.S.-Iran agreement.