Alaska Airlines is withdrawing its full-year profit forecast for 2026, as the company manages the impacts of rising jet fuel prices driven by the ongoing conflict in Iran.

According to CNBC, Alaska Airlines is bracing for a $600 million increase in its fuel costs for the second quarter of 2026, and expects to pay as much as $4.75 a gallon in April. Comparatively, U.S. airlines paid an average of $2.35 a gallon for fuel in January, and $2.39 a gallon in February. Jet fuel also accounts for roughly a quarter of most airlines' operating costs, and average prices have doubled since the Iran war began.

To manage those costs, Alaska started moving its fuel supplies away from the U.S. West Coast in March, instead tankering fuel from Singapore to Seattle, to account for West Coast refinery margins that had raised jet fuel prices by 20 cents a gallon. The airline has also already raised baggage fees, and has started cutting flights scheduled for May and June, primarily focused on late-night departures in high-traffic markets.

Other airlines have similarly struggled in recent weeks as well. In April, Air Canada suspended all flights between June and October from Toronto and Montreal to New York's John F. Kennedy Airport, Delta cut summer routes flying out of JFK, Detroit and Boston, and Lufthansa grounded 27 planes servicing its short-haul CityLine subsidiary.