After bearing the brunt of rising jet fuel prices, caused by supply constraints due to the Iran war, shares of major airlines were buoyed Monday as crude oil prices fell sharply.
JetBlue's stock was the biggest gainer, rising nearly 11% by midday, with Alaska and United up 9% and 6% respectively. Delta, Southwest, and American were all rising, too.
The trajectory of jet fuel prices, among the top two costs for airlines along with labor, is closely tied to that of crude oil. Most-active Brent futures were down nearly 8% Monday to $104.67 a barrel, on hopes for a full reopening of the Strait of Hormuz.
While oil flows through the strait have increased in recent months, the U.S. has continued its naval blockade of Iranian ports. Iran has also made the route risky by attacking boats that attempt passage. Most recently, a merchant vessel was struck by "an unknown projectile" while traversing the strait, United Kingdom Maritime Trade Operations reported.
Now Iran is prepared to reopen the strait within two days, Iran's Tasnim news agency reported. But that would only happen if the U.S. ended its naval blockade. Oil traders may also have been reassured by Secretary of State Marco Rubio saying that President Donald Trump wants to end the nine-month long war "diplomatically."
While JetBlue saw the biggest pop Monday, it has also been the hardest hit among major airlines this year, with shares still down 30% for the year, even with Monday's bounce. That is because it is more exposed to fuel price swings since it gets a smaller portion of its revenue from loyalty plans and premium seats, among other factors.
JetBlue's latest earnings report didn't help. It reported wider than-than-expected losses in the third quarter, which it blamed largely on rising fuel prices. Those rose to $3.91 a gallon in the third quarter, up 57% compared with the same period in 2025. Meanwhile, American said its fuel costs rose 68% to $3.85 in the same period. Its stock is down 13% for the year.
Airlines are expecting even higher fuel costs for the current quarter.
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