Southwest Airlines Ships Texas Jet Fuel to Los Angeles by Barge for First Time Amid Supply Fears
Southwest Airlines, facing volatile fuel markets and supply concerns exacerbated by the U.S.-Iran conflict, 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. It was the first such shipment for the airline, providing roughly a week's supply to the West Coast during peak constriction. The move utilized a Jones Act waiver granted by President Trump in March as fuel prices spiked following strikes on Iran. Southwest reported fuel expenses rose nearly $900 million in Q2 year-over-year. Airlines have scaled back capacity growth and raised fares, with executives expecting higher prices to persist. United Airlines also noted a $575 million fuel cost increase for Q3 alone, highlighting ongoing volatility.
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