Jet fuel shock hits aviation: Bankruptcies and fare hikes begin
Sharp rise in global jet fuel prices is hammering aviation, with low-cost carriers bearing the brunt. Analysts warn rising costs threaten airline profitability in 2026 and could trigger bankruptcies across the sector.
The closure of the Strait of Hormuz due to the Iran-US war has pushed jet fuel (kerosene) prices to historic highs. Unable to absorb these costs, airlines are implementing successive ticket price increases. Spirit Airlines' bankruptcy demonstrates how fragile the sector has become.
Low-cost carriers are hit harder than legacy operators because their profit margins are already thin. Fuel costs now account for 25 percent of operating expenses. Analysts warn that if fuel prices remain at these levels, more bankruptcies are inevitable by end of 2026.
Turkish carriers are also affected. Longer routes chosen for international flights increase fuel consumption and operational costs. Airlines avoiding Turkish airspace also negatively impact tourism demand in the Aegean region.
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