The Indicator from Planet Money Your next flight doesn't have to be so expensive. Here's why
70 snips
Mar 25, 2026 
Jerry Laderman, an airline finance veteran and former Continental treasurer and United CFO, explains airline fuel-hedging and why it faded. He walks through how jet fuel prices are tracked, the role of refining crack spreads, and why carriers shifted from hedges to surcharges and higher fares. The conversation looks at operational levers like refineries and whether hedging might return.
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Jet Fuel Is Driving Ticket Price Jumps
- Jet fuel is a major airline cost and recent spikes are driving higher airfares.
- Jet fuel is about 20% of costs and has risen faster than crude, gasoline, or diesel amid Strait of Hormuz tensions.
Airline CFO Habitually Watches Fuel Prices
- Jerry Laderman describes his decades-long habit of watching fuel prices daily even after retirement.
- He says any airline treasury screen will have fuel prices and he still checks them every day.
Crack Spread Amplifies Jet Fuel Costs
- Jet fuel price equals Brent crude plus a crack spread reflecting refining and transport margins.
- The crack spread rose because Middle Eastern refineries can't ship through the Strait of Hormuz, raising jet-fuel-specific costs.