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WSJ What’s News

What’s News in Earnings: Airlines Feel the Pain of an Oil Shock

WSJ What’s News

The Wall Street Journal

News, Daily News

4.14.2K Ratings

🗓️ 30 April 2026

⏱️ 6 minutes

🧾️ Download transcript

Summary

Bonus Episode for Apr. 30. A surge in oil prices is weighing on profits from airlines. Financial results from American Airlines, JetBlue, United and Delta give insight into how the industry is passing on those higher fuel costs to consumers. Wall Street Journal airlines reporter Alison Sider discusses whether demand for travel is changing and the divide between budget airlines and the rest of the industry.  WSJ travel reporter Jacob Passy hosts this special bonus episode of What's News in Earnings, where we dig into companies’ earnings reports and analyst calls to find out what’s going on under the hood of the American economy. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Your team spend more time searching for information than using it. Amazon Quick changes that.

0:06.1

One intelligent assistant that connects all your company's data and turns answers into action instantly.

0:12.5

AWS.com slash quick.

0:18.4

Hey listeners, it's Thursday, April 30th. I'm Jacob Passy for the Wall Street Journal.

0:23.7

And this is What's News and Earnings, our look at some of the biggest themes standing out this

0:28.2

earnings season. It's been a turbulent quarter for airlines. The war with Iran has caused jet fuel

0:34.2

prices to soar, and that's putting a damper on airlines' profits.

0:38.2

While demand for travel is holding up, airlines are driving fares and fees higher and higher,

0:43.7

and that's raising concerns that Americans may change their travel plans for this summer.

0:48.4

JetBlue CEO, Joanna Garrity, told Wall Street analysts this week that it was the most difficult period in years.

0:55.0

Given the sharp increase in the price of fuel and the expectation for elevated prices throughout this year,

1:01.0

we are suspending our prior full-year guidance as we aggressively adjust to the evolving macro backdrop.

1:08.0

And some airlines are having an even more difficult time than JetBlue, and they're

1:12.4

asking the Trump administration for help.

1:19.1

We're joined now by Wall Street Journal airline reporter Alison Sider, who's been monitoring the

1:23.6

state of play. Allison, higher oil prices are weighing on airlines. How big a deal is that

1:29.6

for the bottom line and what are airlines trying to do to offset those costs? It's turning out to be

1:35.5

a pretty big deal. Jet fuel prices have basically doubled since the start of the war in Iran.

1:42.2

And it's adding a lot of expense. Delta expects its fuel expense

1:45.7

for this quarter to be $2 billion more than a year ago. American is saying it's going to pay an

1:51.1

extra $4 billion in fuel this year. So it's really going to squeeze their profit margins for the

1:55.9

rest of the year. In terms of what they're doing about it, you already probably have started seeing it

...

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