SEATAC, Wash. — Alaska Airlines reported a loss of $76 million during the second quarter of 2026, citing rising fuel prices, as conflicts in Iran and between Russia and Ukraine send the price of oil upward again, after falling for weeks at the end of June into July.
“We don’t just have the U.S. and Iran -- we also have Ukraine’s attacks on Russian refineries. So, it’s a more complex system to be able to figure out and forecast where prices are going,” Patrick De Haan, lead petroleum analyst at GasBuddy, said.
The average price for unleaded fuel in Seattle is $5.05, according to AAA. That is eight cents higher than last week, but 29 cents lower than a month ago.
“I had to do it, because I had work. So, right now, it was almost empty. I’m on my way from work to home to rest a little bit and go back to work again, because it’s very expensive right now,” Marcos Abila said on how he’s dealing with prices that are nearly 70 cents higher than last year.
De Haan says Alaska Airlines is particularly vulnerable to fuel prices as its hub is in Seattle. Two refineries in California have been offline, restricting supply on the West Coast. He says the state’s policies are having an impact as well.
“Washington state’s Cap-and-Invest program is a huge thorn in the side of an airline like Alaska who has to pay those costs,” De Haan said.
“If you’re an airline like United based in Chicago, where you have operations everywhere, then part of your operations in one area can subsidize and help you shield yourself from extreme fuel prices in another area. But, unfortunately, in an airline like Alaska that is very heavily focused on the West Coast, those are the most expensive jet fuel markets in the country,” De Haan continued.
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