Surging jet fuel prices linked to the Iran conflict have forced US airlines to cut flights and raise fares, sparking a heated debate in Congress over energy policy. Senator Maria Cantwell pressed Energy Secretary Chris Wright during a Senate hearing, citing Alaska Airlines’ spring schedule cuts and hundreds of millions in added fuel costs. Industry data shows prices have jumped from about $100 per barrel late last year to above $200 this month before easing slightly, intensifying pressure on carriers already struggling with rising operational expenses.
Cantwell criticised the administration’s decision to scale back incentives for sustainable aviation fuel and hydrogen programs, arguing that early-stage technologies need government support to scale. She warned that cutting tax credits risks slowing innovation and leaving airlines dependent on Middle East oil. Wright acknowledged the concern but defended the administration’s approach, noting that alternative fuels remain costly and face infrastructure challenges. He added that sustainable aviation fuels are “meaningful drivers of upward prices” due to high production costs and limited transport networks.
The dispute comes as fuel costs rise across the broader economy, with diesel and petrol prices climbing sharply and adding to travel and transport expenses. Airlines are already passing on higher costs through fares and fees, and more disruptions are expected if prices remain elevated. The clash underscores the growing tension between immediate energy affordability and long-term investment in sustainable aviation fuel, highlighting the stakes for both the airline industry and US energy policy.