Energy Price Shocks to Hit Airline Profits, Hassett Says

Kevin Hassett, director of the White House National Economic Council, said rising energy costs are expected to weigh on airline profits, though the broader industry remains financially stable.

Spirit Airlines, which was already facing bankruptcy, was undone by a combination of soaring jet fuel prices, a severe liquidity crisis, and failed rescue talks. (Photo: Spirit Airlines X)

Speaking on Face the Nation with Margaret Brennan, Hassett noted that while Spirit Airlines cited rising fuel costs tied to Middle East tensions as a factor in its collapse, the carrier had longstanding financial challenges.

Hassett said many airlines mitigate fuel price volatility by hedging jet fuel purchases, which helps cushion the impact of short-term energy shocks.

“Certainly, that will affect the profits for the airlines for a quarter or so, but they’re very, very healthy right now,” he said.

Addressing broader market concerns, Hassett added that U.S. policy actions are exerting pressure on Iran, and said financial markets have remained relatively stable despite geopolitical tensions.