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Alaska Air Group
pulled its full-year profit forecast, as sky-high jet fuel costs driven by the Iran war and its chokehold on global oil supplies hammer margins and cloud the outlook into the future.
Airlines worldwide are buckling under surging jet fuel costs after U.S.-Israeli strikes on Iran choked off the Strait of Hormuz, a vital artery for global oil shipments, delivering the industry’s most severe shock since the COVID-19 pandemic.
Prices for jet fuel, which typically accounts for a quarter of airline operating costs, have nearly doubled since the conflict began, squeezing carriers caught between soaring expenses and pre-sold tickets they cannot reprice.
