Fuel surge hits airlines, sparks US clash

Washington: Surging jet fuel prices linked to the Iran conflict are forcing US airlines to cut flights and raise fares, triggering a sharp exchange in Congress over energy policy and cuts to alternative fuel programmes.

At a Senate hearing, Maria Cantwell pressed Energy Secretary Chris Wright on rising costs and the administration’s decision to scale back incentives for sustainable aviation fuel.

“Front page of the Seattle Times this morning – flights canceled because of the high cost of jet fuel,” Cantwell said. She added that Alaska Airlines is expected to spend hundreds of millions more on fuel this quarter.

The airline has already announced cuts to its spring schedule as it struggles to absorb higher fuel costs.

Industry data show jet fuel prices have jumped from about $100 per barrel late last year to above $200 this month before easing slightly.

Cantwell tied the pressure on airlines to policy decisions. She criticised cuts to tax credits aimed at boosting sustainable aviation fuel production.

“You’re cutting the hydrogen program. And in the Big Beautiful Bill, they cut the sustainable tax credit in value. And so you’re really crippling the next generation of jet fuel,” she said.

She urged the administration to back efforts to reduce dependence on Middle East oil.

“Let’s get out of the way of diversifying our fuel source so that we’re not so dependent on Middle East oil,” Cantwell said.

Wright said higher prices are a concern but defended the administration’s approach.

“Absolutely, and so do I. I would say it is frustrating to see a little bit higher energy prices right now. They’re still well lower than they were four years ago,” he said.

Cantwell pushed back. “There’s nobody in the Northwest who thinks what’s going on right now is okay, not when they wake up and airline flights are being canceled because of high fuel costs,” she said.

Wright said alternative fuels remain expensive and face infrastructure limits. He said sustainable aviation fuels are “meaningful drivers of upward prices for jet fuels” and pointed to high production costs and limited transport networks.

Cantwell argued early-stage technologies need government support to scale. She said cutting incentives risks slowing innovation in aviation energy.

The dispute comes as fuel costs rise across the economy. Diesel prices have climbed sharply, and petrol prices have increased over the past year, raising travel and transport costs.

Airlines are already passing on higher costs through fares and fees. More disruptions are likely if prices stay elevated.

IANS