As the war set off by the U.S.-Israeli strike that killed Iranian Supreme Leader Ayatollah Khamenei continues to escalate, the price of jet fuel immediately felt the impact as the closure of the Strait of Hormuz threatens global supply.

In multiple parts of the word, the price of oil per barrel is up by as much as 80%.

“Domestic capacity growth is now accelerating through this year, and the Iran conflict will add disruptive pressures and material fuel cost inflation,” Rothschild Redburn Director James Goodall wrote in an investor note that downgraded the stock of American Airlines in response to the situation in the Middle East.

“If it continues, we’ll feel it”: United CEO Scott Kirby on jet fuel prices

At a March 5 discussion on aviation at the Harvard John A. Paulson School of Engineering and Applied Sciences, United Airlines CEO Scott Kirby warned that rising fuel costs — as of March 6, $3.95 USD a barrel — will have a rapid impact on all airlines’ bottom lines.

“If it continues we’ll feel it in Q2 [the second financial quarter of the year] also,” Kirby said in response to a reporter’s question while also adding that the immediate impact to consumers on prices will “probably start quick.”

Related: Airlines cancel more flights over geopolitical instability

While numerous European and Middle Eastern airlines have begun hedging fuel prices in response to oil price fluctuation that could last into 2027, U.S. airlines generally do not lock in prices using futures contracts due to the major losses this brings if oil prices drop faster than anticipated.

Rising crude oil prices will have an immediate impact on airlines and the prices they charge for fares.

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How the price of oil will impact air ticket prices

“No one hedges anymore and even if you do, hedging the crack spread is really hard to do,” Kirby said further. Crack spread is the difference between crude oil and jet fuel as well as other products that are ready to use by industry.

Numerous other analysts have also warned about the conflict’s impact on air ticket fares. Hungarian low-cost airline Wizz Air said that it expects to see losses of as much as €50 million due to rising fuel prices. Delta Air Lines also estimates that an increase in oil prices of just one cent per gallon will increase its fuel costs by $40 million per year.

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Southwest and American, which have higher fuel costs due to a larger number of older and less fuel-efficient aircraft and the type of routes they fly, are expected to sustain even bigger losses. Shares of all major public airlines as well as airline ETFs have all remained down since the Feb. 28 strike.

“Demand strength may in part offset rising fuel prices but, airlines with low-margins and high fuel expense as [a percentage] of revenue have the most sensitivity to fuel shocks,” Citi analysts wrote in a March 4 note that also warns investors that “fuel prices have rallied dramatically” which, in turn, puts pressure on airline pricing.

Citi added that Delta and United are “less sensitive to fuel shocks” compared to some competitors but are still going to feel sticker shock given the critical role of jet fuel in flying.

Related: Iranian strike hits major airport, injuries reported