Profits for U.S. airlines were down $1 billion in the first quarter of 2026 compared to the same time period last year, according to a U.S. Department of Transportation report released on June 16. In 2025, total net profits were down $600 million from 2024.
This could explain why so many airlines have ended routes and stopped service at underperforming airports. The tanking market also did in Spirit Airlines, which was struggling out of its second bankruptcy in two years with a profitable summer in sight before abruptly grounding its planes and closing down in May.
Allegiant Air dropped 61 routes from last year, according to Simple Flying, and ended service at seven regional airports. JetBlue Airways is flying away from Manchester-Boston Regional Airport (MHT) this summer and cutting routes from other airports.
However, both carriers are strengthening their position in Florida.
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“South Florida is a key market for JetBlue, and we recognize this is a challenging moment for many travelers,” said JetBlue CEO Joanna Geraghty in May. “Our focus is on stepping up in the near term by adding service, maintaining connectivity, and keeping fares competitive, so customers can continue to travel with confidence.”
Why are US airlines losing money?
The Transportation Bureau’s quarterly report, which is mandated by the Office of Management and Budget, tracks all 22 scheduled passenger carriers in the country but does not supply possible reasons.
But the drop in air travel comes as Americans are cutting corners to deal with rising grocery and energy costs, and visits from several countries (notably Canada) have slowed amid President Donald Trump’s threats to annex more territory and his on-again, off-again tariffs last year.
Most recently, jet fuel costs have skyrocketed during the Iran war ever since Iran closed the Strait of Hormuz, through which travels about a fifth of the world’s oil supply. Gas prices in the U.S. have risen to their highest point in four years.
Airlines filling in revenue gaps with raised fees
American Airlines, Delta Air Lines, JetBlue, and United Airlines all raised bag fees in May and April. Southwest ended its long-standing first-come, first-seated practice in January, added baggage fees last year, and tightened its restrictions on refunds for plus-sized passengers (although the carrier recently changed its policies to allow free extra seats as needed).
Several budget airlines reworked their fare structures last year to add more premium options.
Airlines expanding in Florida
While several airlines have canceled or failed to bring back seasonal flights in Florida, the Sunshine State continues to be a focal point. Just some of the new flights beginning this year include:
C. A. Bridges is a journalist for the USA TODAY Network-Florida’s service journalism Connect team. You can get all of Florida’s best content directly in your inbox each weekday by signing up for the free newsletter, Florida TODAY.
This article originally appeared on Palm Beach Post: US airlines lost $1 billion so far in 2026, some still Florida focused
Reporting by C. A. Bridges, USA TODAY NETWORK – Florida / Palm Beach Post
USA TODAY Network via Reuters Connect
By C. A. Bridges, USA TODAY NETWORK – Florida | USA TODAY Network
