# Jet Fuel Costs and SAF Surge: A Look at Air Cargo Trends in 2026

URL: https://airfreightprice.com/blog/air-cargo-news-20260707/

As of June 2026, jet fuel prices have surged significantly, reaching $2.95 per gallon, marking a stark increase compared to the previous year. This escalation has prompted major airlines to adjust their fuel surcharges accordingly. According to IATA, the rising costs of jet fuel are forcing freight carriers to reconsider pricing strategies, as they strive to maintain profitability amid volatile fuel expenses. The fuel cost fluctuations are not only impacting the operational costs of airlines but are also affecting the overall pricing structures for air freight services. Major carriers such as Emirates SkyCargo and Qatar Airways Cargo are among those who have raised their fuel surcharges, reflecting the increased jet fuel costs. As the air cargo industry continues to adapt to these rising prices, analysts are keeping a close eye on market trends that could influence future pricing strategies.

## Current Jet Fuel Price Trends

Jet fuel prices have seen a significant rise in Q2 2026, with benchmark prices reaching $2.95 per gallon in June. This marks a dramatic increase compared to $2.05 per gallon in June 2025, representing an increase of approximately 43%. Major airlines are adjusting fuel surcharges accordingly to offset this rise. For instance, Lufthansa Cargo has increased its fuel surcharge to 18%, while FedEx has adjusted its surcharge to 16%. These adjustments reflect the industry-wide challenges faced by freight carriers due to soaring jet fuel costs. Furthermore, as reported by Transport Intelligence, the global forwarding market is expected to reach €233 billion by 2030, indicating that the demand for air cargo services remains strong despite rising operational costs. Airlines must strategically manage their fuel surcharges to remain competitive while ensuring their services are sustainable.

## The Rise of Sustainable Aviation Fuel (SAF)

In response to rising jet fuel costs, the air cargo industry is increasingly turning to Sustainable Aviation Fuel (SAF). By the end of 2026, SAF usage in air cargo is projected to increase by 30%. Major carriers like United Cargo and FedEx are leading the charge in SAF adoption, incorporating it into their operational strategies. For example, United Cargo has committed to using SAF for all flights operating out of its hub in Newark (EWR) by mid-2026. Government incentives are also boosting SAF production and usage, with several countries implementing policies to encourage the development of SAF infrastructure. The table below highlights the current fuel surcharge rates, jet fuel prices, and SAF usage among key airlines in the air cargo sector:

Airline | 
Current Fuel Surcharge (%) | 
2026 Jet Fuel Price ($/gallon) | 
SAF Usage (liters) | 

FedEx | 
16 | 
2.95 | 
500,000 | 

United Cargo | 
15 | 
2.95 | 
350,000 | 

Lufthansa Cargo | 
18 | 
2.95 | 
200,000 | 

Emirates SkyCargo | 
17 | 
2.95 | 
300,000 | 

 This shift towards SAF is crucial for reducing the environmental impact of air freight operations and addressing the growing concerns surrounding climate change.

## Impact on Freight Rates and Surcharges

As a direct consequence of the escalating jet fuel costs, air freight rates have surged 41% year-over-year as of May 2026. This spike has resulted in fuel surcharges now averaging 15% of total freight costs. Carriers are compelled to adjust their pricing strategies to remain competitive in a market characterized by high costs. According to Xeneta, despite these high rates, the air freight market trends indicate steady demand, with a notable increase in shipments for e-commerce and healthcare products. Major routes have experienced substantial rate increases, with Asia to North America routes seeing some of the highest surcharges. For instance, the average air freight rate from HKG to ORD has risen to $7.50 per kilogram, significantly impacting businesses relying on timely deliveries. Carriers are adapting their pricing models to accommodate these changes, ensuring they can still meet customer demand while managing operating costs effectively. For more insights on air freight pricing strategies, check our [related article](https://airfreightprice.com/blog/).

## Looking Ahead: Future Projections and Strategies

Looking forward, analysts predict that volatility in jet fuel prices will continue through 2027, necessitating strategic responses from freight carriers. The emphasis on investing in SAF infrastructure is increasingly viewed as crucial for long-term sustainability. Major airlines are expected to ramp up their SAF usage in response to both regulatory pressures and market demands. According to The Loadstar, air freight rates are expected to remain high despite a recovering capacity, highlighting the ongoing challenges faced by the industry. Forwarders are adapting to new pricing models, keeping a close eye on fuel strategies to optimize their operations. As jet fuel costs remain a significant factor in determining freight rates, the industry must navigate these fluctuations while prioritizing sustainability and operational efficiency. In conclusion, as the air cargo sector faces increasing costs, the integration of SAF and strategic pricing will be vital in shaping the industry’s future.