The rise in jet fuel prices has posed a major challenge for airlines. The ongoing conflict in the Middle East has triggered a global increase in fuel prices that shows no signs of easing. In Mexico, the main airlines — Volaris, Viva Aerobus, and Aeroméxico — are optimistic about the upcoming boom period due to summer vacations and the World Cup celebration; however, the increase in energy costs may overshadow their profits. If last December, a liter of jet fuel was priced at 11.85 pesos in the country, by April its price climbed to 21.40 pesos per liter, according to data from Airports and Auxiliary Services (ASA), representing an 80.5% increase. Distribution and storage expenses are added to this cost. Faced with the price surge, airlines have been forced to implement a series of measures: reducing internal expenses, increasing fares, and even canceling less profitable routes.
The war in the Middle East has created a domino effect across various industries, such as aviation. This is no minor issue, as fuel costs represent one-third of airline expenses. The most recent example has been the forced landing of Spirit Airlines: the American airline has grounded its planes after ceasing operations following attempts to revive its finances. In Mexico, Magnicharters suspended operations in April and has already requested to enter bankruptcy proceedings due to financial insolvency. Although the company had problems for years, the exponential rise in fuel prices is its final blow.
Meanwhile, Aeroméxico reported in its most recent financial report a 13.1% increase in fuel cost per liter compared to the first quarter of 2025, with an average of 77 cents per liter in the first quarter of 2026, compared to 68 cents per liter in the first quarter of 2025. In its investor call, executives acknowledged that the second quarter of this year will continue to suffer the effects of rising fuel costs. “We expect the second quarter to remain challenging and anticipate it will be the weakest period of the year, reflecting the full impact of recent fuel price increases,” they stated.
Volaris is another leading Mexican airline that has felt the impact of rising fuel costs. In the first quarter of the year, it lost 71 million dollars. The company acknowledged that despite increased revenues, the quarter was affected by higher fuel prices and maintenance costs. In the first three months of 2026, it spent 252 million dollars on fuel, 16% more than the same period in 2025.
Holger Blankenstein, executive vice president of the airline, admitted that there will be a fare adjustment and flight consolidation to reduce the impacts of rising fuel costs. Routes will not be canceled, but flight frequency will be reduced. “We can quickly adjust low-performing routes in response to the new fuel price environment and less profitable markets. We adjust frequencies agilely as the fuel price environment evolves,” he stated.
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Pemex is responsible for supplying Mexican airlines through local production and imports. Rogelio Rodríguez, an expert in aviation law, explained that airlines will do what they have historically done: strengthen themselves in solid markets and sacrifice unprofitable routes. “They are cutting marginal flights due to profitability adjustments,” he concluded.
In response to rising fuel costs, the Mexican government is preparing a series of supports. Although the federal administration does not foresee a direct subsidy for jet fuel, it is evaluating a series of cost reductions in fuel storage and landing strips. “These are different schemes; we cannot intervene in the cost of jet fuel, but we can with the storage costs of Airports and Auxiliary Services, or how we help airport groups to have incentives on landing strips, these are different issues,” said Josefina Rodríguez, Secretary of Tourism, last April.
The end of the conflict in the Middle East still seems distant and, therefore, the rise in fuel prices is expected to last, which will test the resilience of airlines worldwide. At this moment, all questions focus on the resistance margin of both large and medium-sized companies. And, amid this price war, the end consumer will be one of the main affected parties, both due to higher ticket prices and the reduction or cancellation of routes.
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