Southwest Ships 12.6 Million Gallons of Jet Fuel to LA as Iran War Jolts Supply
Updated
Updated · CNBC · Jul 23
Southwest Ships 12.6 Million Gallons of Jet Fuel to LA as Iran War Jolts Supply
2 articles · Updated · CNBC · Jul 23
Summary
Southwest moved 12.6 million gallons of jet fuel by ship from Houston to Los Angeles in May—its first such transfer—to cover about a week of West Coast needs when California supply was tightest.
The cargo traveled through the Panama Canal under a Jones Act waiver Trump issued in March after the Iran war and Strait of Hormuz shipping snarls sent fuel prices soaring.
Fuel-market volatility has hit airline finances hard: Southwest said second-quarter fuel expense rose nearly $900 million from a year earlier, while United last week flagged a $575 million third-quarter fuel increase.
West Coast supply fears have eased as some export restrictions loosened, but prices rose again this month with renewed Iran tensions, keeping pressure on carriers that largely no longer hedge fuel.