Southwest Airlines Ships Jet Fuel by Barge from Texas to LA for First Time Amid Supply Fears
Southwest Airlines, for the first time, chartered a barge to transport 12.6 million gallons of jet fuel from Houston to Los Angeles via the Panama Canal, arriving May 28, 2026. The move was a response to volatile fuel markets and supply concerns exacerbated by the U.S.-Iran conflict and subsequent shipping disruptions in the Strait of Hormuz. The shipment utilized a Jones Act waiver granted by President Trump in March. Southwest reported fuel expenses rose nearly $900 million in Q2 2026. The West Coast, heavily reliant on imports, faced particularly high prices. Airlines have scaled back capacity growth and raised fares, with executives expecting higher prices to persist. United Airlines also noted significant fuel cost increases, impacting earnings.
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