How jet fuel prices jumped from $95.95 to $197
Published: 10:03 AM,Mar 25,2026 | EDITED : 06:03 PM,Mar 25,2026
Muscat: The jet fuel prices have been constantly increasing since the start of the Iran War on February 27.
On February 20, the weekly average price per barrel was $95.95 on February 20, which went up by 3.6% to $99.40 on February 27 (a day before the start of the war).
In the following week, the price went up by 58.4% to $157.41 on March 6, by 11.2% to $175 on March 13, and by 12.6% to $197 on March 20.
The average weekly price increase is 16.6% in Asia and Oceania, 11.8% in Europe and CIS, 15.6% in the Middle East, 10.4% in North America, 11.75 in Latin and Central America, and 13.25 in Africa.
According to IATA, jet fuel is the highest cost for airlines (along with labor), and fluctuations in fuel prices have an important effect on the airline industry's profitability. However, the pace of change tends to matter more than the price level. Rapid changes qualify as shocks and are hard to adjust to.
The most damaging episodes occur when fuel prices rise rapidly, and airlines do not have time to adapt their strategy.
In 2008, jet fuel prices increased by roughly 40% year-on-year to $127 per barrel, equating to $190 per barrel in 2025.
Industry operating margins slumped from about 4% to around zero, as airlines were unable to pass through such a rapid cost increase quickly enough to protect margins, says IATA.
In 2008, jet fuel prices increased by roughly 40% year-on-year to $127 per barrel, equating to $190 per barrel in 2025.
Industry operating margins slumped from about 4% to around zero, as airlines were unable to pass through such a rapid cost increase quickly enough to protect margins, says IATA.
The key implication is that airline profitability is highly sensitive to the speed of fuel price changes.
When fuel prices remain elevated but stable, airlines can adjust pricing and operations gradually and continue to operate profitably, although typically with thinner margins. Fuel price shocks, however, push costs higher faster than revenues can adjust, and pose an elevated risk of eroding margins and industry profits.
When fuel prices remain elevated but stable, airlines can adjust pricing and operations gradually and continue to operate profitably, although typically with thinner margins. Fuel price shocks, however, push costs higher faster than revenues can adjust, and pose an elevated risk of eroding margins and industry profits.