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US Airlines Cancel Flights as Fuel Costs Double Over Iran Crisis

by News Analysis India
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The US aviation sector is reeling from a jet fuel price explosion triggered by Iran-related geopolitical strains. Airlines nationwide are canceling routes and jacking up fares, sparking a fiery debate in Congress over the Biden administration’s energy strategy. At the center: deep cuts to subsidies for sustainable aviation fuel amid a supply crunch.

In a tense Senate Energy Committee hearing, Washington state’s Senator Maria Cantwell confronted Secretary Chris Wright. She cited headlines from the Seattle Times on flight cancellations and warned of massive hits to carriers like Alaska Airlines, potentially costing hundreds of millions extra quarterly.

Data paints a stark picture: jet fuel leaped from $100 per barrel late last year to over $200 recently. Airlines, already trimming spring schedules, struggle to stay afloat. Cantwell ripped into policy shifts slashing SAF tax breaks, arguing they lock the industry into volatile foreign oil.

‘Diversify our fuel sources—don’t leave us hanging on Middle East supplies,’ she urged. Wright conceded prices are disappointingly high but noted they’re below pre-pandemic peaks. Undeterred, Cantwell emphasized the real-world pain in her region: ‘People aren’t buying that these costs are manageable when flights vanish.’

The secretary pointed to SAF’s premium pricing and sparse production networks as barriers. Yet Cantwell insisted federal backing is essential to scale innovations, warning that pullbacks could derail decarbonization efforts. Beyond aviation, surging fuel costs ripple through trucking and commuting, with diesel and gas pumps hitting wallets hard. Expect airlines to keep squeezing passengers unless relief arrives soon.

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