Freight haulers are seeking relief as jet fuel costs have remained stubbornly high amid the US war in Iran.
The National Air Carrier Association (NACA) is lobbying the Trump administration to temporarily suspend excise taxes on jet fuel amid concerns that global oil reserves are dwindling – and that jet fuel prices are likely to remain elevated longer than hoped as a result.
NACA chief executive George Novak urged President Donald Trump and US lawmakers to consider the proposed relief measure on 18 May, nearly three months into the US-Israel-Iran conflict that has resulted in a double blockade of the vital oil-shipping lane through the Strait of Hormuz.
Jet fuel is among the refined petroleum products most affected by global the crude oil shortage. Last week, the average price of jet fuel in North America hit $3.90 per gallon, according to IATA’s Jet Fuel Price Monitor. That compares with average jet fuel costs of $2.70-$2.80 per gallon for the full year of 2025.
Advocating on behalf of NACA’s member carriers, Novak “respectfully” implores the Trump administration to consider temporarily dropping excise taxes, which are added to each gallon of jet fuel sold to carriers.
“We are in the process of transmitting this to policy and decision makers in the administration and on [Capitol] Hill, while continuing to coordinate with other associations and industry leaders,” he says. “Our 15 airlines have been particularly hard hit with very high aviation fuel costs in some regions and look forward to working with the administration and Congress to find practical and effective ways to temper costs that are ultimately borne by consumers.”
Funds from excise taxes support the Federal Aviation Administration’s Airport and Airway Trust Fund, which helps pay for air traffic control (ATC), airport grants and aviation infrastructure. Waving the jet fuel tax could create a headwind for the FAA’s effort to boost ATC funding and modernise the country’s creaking airspace safety systems – a majority priority for Trump during his second term.
But NACA asserts that short-term economic benefits outweigh those longer-term considerations.
“This action would provide immediate operational relief to carriers, help preserve critical air transportation capacity, support supply chain stability and help limit additional inflationary pressure on the American economy during a period of significant geopolitical uncertainty,” Novak says.
NACA represents 15 air cargo carriers in the USA, including three smaller operations based in Alaska — Everts Air, Lynden Air Cargo and Northern Air Cargo. The group also includes sector giants such as Amerijet and Atlas Air, as well as start-up charter and cargo carrier GlobalX.
“Most of NACA’s carriers are smaller airlines who cannot hedge fuel prices and therefore deal with the full brunt of the increases which, in the long run, can threaten their viability,” Novak says.
Airline advocacy group Airlines for America declines to comment on whether it also supports suspending excise taxes on jet fuel amid conflict in the Middle East.
US low-cost carriers have lobbied the Trump administration for financial support to weather ongoing fuel price shocks. Now-defunct Spirit Airlines cited the rapid surge in jet fuel prices as a major factor in its financial collapse earlier this month.
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