Airlines Cut Routes Amid Rising Jet Fuel Costs from Iran War

Carriers like Delta, Air Canada, and KLM adjust schedules as fuel prices double since conflict began

Apr. 17, 2026 at 9:35pm

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A photorealistic studio still-life image of a sleek, metallic model of a commercial jet engine, positioned at an angle against a clean, monochromatic grey background. The dramatic lighting and shadows convey a sense of power and the critical role of jet fuel in modern air travel.As jet fuel prices soar amid the Iran war, airlines are forced to make tough choices about which routes to cut, disrupting summer travel plans.Boston Today

Airlines are being forced to cut routes and trim flight schedules this summer as they face skyrocketing jet fuel costs due to the ongoing war between Iran and other nations. Carriers like Delta, Air Canada, and KLM have announced reductions in service, citing the sharp rise in fuel prices that have more than doubled since the conflict began on February 28. Analysts warn the disruption to the aviation industry could lead to longer travel times and more inconveniences for passengers, especially on flights between the U.S. and Europe.

Why it matters

The airline industry is facing its largest energy crisis in history, with jet fuel prices soaring due to the Iran war and the blockage of the Strait of Hormuz, a critical global oil chokepoint. This is forcing carriers to make tough decisions about which routes to cut, which could significantly impact summer travel plans for many passengers.

The details

Airlines had pre-sold tickets based on expectations that fuel costs would remain relatively stable, but the spike in oil prices has forced them to cancel some flights to avoid losing money. Jet fuel typically accounts for 25-30% of overall airline costs, and prices have more than doubled since the war began on February 28. Delta is cutting four routes from New York, Detroit, and Boston, while Air Canada is reducing service from Toronto and Montreal to New York. Other carriers like KLM and Lufthansa are also making schedule adjustments due to the financial unviability of certain routes.

  • The Iran war began on February 28, 2026.
  • Airlines are making route cuts effective from June 1 through October 25, 2026.

The players

Delta Air Lines

A major U.S. airline that is cutting four routes this summer from New York, Detroit, and Boston due to rising jet fuel costs.

Air Canada

Canada's largest airline, which is reducing service from Toronto and Montreal to New York's JFK airport from June through October due to the financial impact of higher fuel prices.

KLM Royal Dutch Airlines

The flag carrier airline of the Netherlands, which is adjusting its flight schedule this month due to rising costs as certain routes are no longer financially viable to operate.

Lufthansa

A major German airline that will shut down a regional subsidiary this week and ground planes "in view of significantly increased kerosene prices."

Stephen Rooney

The lead economist at Tourism Economics, who commented on the impact of rising jet fuel costs on airlines.

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What they’re saying

“The spike in oil prices is big news in general and the impact on jet fuel prices is pronounced. Jet fuel is a huge cost for airlines, especially on longer-haul flights.”

— Stephen Rooney, Lead Economist, Tourism Economics

“They've sold tickets on the basis of certain fuel price expectations, but when that goes up, sometimes they'll cancel flights, or add surcharges. Tickets are sold under contract, and you can't backtrack, so they cancel some routes to avoid that.”

— Stephen Rooney, Lead Economist, Tourism Economics

“I don't recall ever seeing anything like this on such a large scale, it's alarming.”

— Henry Harteveldt, Airline Industry Analyst

What’s next

Once tankers carrying about 20% of the world's oil supply start sailing through the Strait of Hormuz again amid a ceasefire, jet fuel prices are expected to gradually return to normal levels, though it could take weeks or months for the fuel supply to fully stabilize.

The takeaway

The ongoing Iran war and resulting disruption to global oil supply chains is having a major impact on the airline industry, forcing carriers to make difficult decisions about route cuts and flight schedules that will likely lead to more travel inconveniences for passengers this summer. This crisis highlights the aviation sector's vulnerability to energy market shocks and the need for greater resilience in the face of geopolitical conflicts.