Jet fuel prices near $5 per gallon in New York and Los Angeles

Investing.com -- Jet fuel prices in New York and Los Angeles are approaching $5 per gallon as Ukrainian strikes on Russian refineries and reduced Middle East shipments of refined products pressure supplies.

Airline fuel costs in the two largest American cities have increased, while Gulf Coast prices, the U.S. benchmark region, have declined slightly from last month. Jet fuel reached $4.95 per gallon in New York on Thursday, the highest level since late March. Los Angeles prices climbed to $4.91, the highest since late April.

The rising prices may increase the cost of flying and push airline fuel bills higher, affecting inflation and the travel industry. Delta Air Lines said Friday it expects to absorb approximately $6 billion in additional fuel costs this year compared to 2025, according to its earnings outlook. The carrier projects a fuel price of $4.25 per gallon for the upcoming quarter.

Delta faces less exposure to war-related price increases due to its ownership of an oil refinery and focus on premium customers. Higher ticket prices are expected to continue for an extended period.

Diesel supplies have faced the most pressure both internationally and in the U.S., with stockpiles at their lowest seasonal levels on record. Jet fuel and diesel prices are closely linked as both are middle distillates produced through similar refining processes. Additional diesel production can reduce jet fuel output, and vice-versa.

Jet fuel production, which increased between April and September, has fallen back near March levels. Stockpiles remain robust but are no longer at the seasonal records seen in July and August.

Original Article

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