What Happened
Fuel Price Surge Hits Air Travel Industry Hard
Major US passenger airlines spent $5 billion on jet fuel in March, a 56% increase from February, according to the US Transportation Department. The cost per gallon of fuel rose 31% to $3.13, with fuel use increasing 20% in March. Airlines have responded by hiking air fares and baggage fees, cutting some routes, and making other cost cuts. This surge in fuel prices has created the air travel industry’s biggest crisis since the COVID-19 pandemic, with some airlines seeking government bailouts to address higher fuel costs. The situation was first reported by Reuters.