As Skyrocketing Fuel Prices Force Airlines to Cancel Flights, Cantwell Grills Energy Secretary on Trump Cuts to Alternative Aviation Fuels

As Skyrocketing Fuel Prices Force Airlines to Cancel Flights, Cantwell Grills Energy Secretary on Trump Cuts to Alternative Aviation Fuels

Trump's "Big Beautiful Bill" cut tax credits for sustainable aviation fuel development nearly in half; Cantwell: "Let's get out of the way of diversifying our fuel source so that we're not so dependent on Middle East oil"; This morning, Alaska Airlines announced cuts to flights in May and June as the company struggles to absorb $193m in Iran War fuel price hikes

U.S. Secretary of Energy Chris Wright about President Donald Trump's cuts to sustainable aviation fuel (SAF) development and tax credits to grow the industry as skyrocketing energy costs linked to the conflict in Iran are forcing airlines to tighten their belts and pass price hikes along to consumers.

According to the International Air Transport Association's Jet Fuel Price Index, global jet fuel prices rose from roughly $100 per barrel late last year and early 2026 to above $200 this month, before edging slightly downward.

This morning, Alaska Airlines announced cuts to its spring flight schedule -- a result of the company losing $193 million in fuel prices due to the president's unauthorized war with Iran. The airline already raised baggage fees to try and offset the costs.

Meanwhile, President Trump's "One, Big Beautiful Bill" cut the Sustainable Aviation Fuel Tax Credit - the program meant to incentivize the very sustainable fuel development that would make the United States less reliant on oil from the Middle East - by nearly half, from $1.75 per gallon to just $1 per gallon. Sen. Cantwell also noted how the Energy Department's illegal decision to not fund the Pacific Northwest Hydrogen Hub was also a major setback for several key regional SAF projects that are responding to overwhelming demand from industry for new fuels.

"I obviously don't agree with what the President is doing in the Middle East, but […] you're also cutting these programs that are the future for how we get out of this situation," Sen. Cantwell said.

"Front page of the Seattle Times this morning - flights canceled because of the high cost of jet fuel. In fact, the story says that Alaska Airlines is expected to spend $600 million more in expenses this quarter because of these high fuel costs," she continued.

"You're cutting the hydrogen program. And in the Big Beautiful Bill, they cut the sustainable tax credit in value. And so you're really crippling the next generation of jet fuel.

"And so I want to hear what your answer is to, do you believe in those cripplings of this? Or do you believe in us continuing to lead as a nation [that] is going to diversify off of the high cost of jet fuel as a way to have our airlines grow?"

Secretary Wright responded: "Absolutely, and so do I. I would say it is frustrating to see a little bit higher energy prices right now. They're still well lower than they were four years ago in the middle of the Biden administration."

Sen. Cantwell cut in: "I want to stop you right there. There's nobody in the Northwest who thinks that. There's nobody in the Northwest that thinks what's going on right now is okay, not when they wake up and airline flights are being canceled because of high fuel costs or diesel is at, whatever it is, six or seven. No one thinks it's okay."

She added: "Let's get out of the way of diversifying our fuel source so that we're not so dependent on Middle East oil, and certainly diversify off of a jet fuel source […] that's just what I want to know: are you supportive of this cut that was done to reduce the Sustainable Aviation Fuel Tax Credit that was done in the Big Beautiful Bill?"

Video of their exchange can be viewed HERE; a transcript is HERE.

Last week, diesel prices hit an all-time record high in Washington state, while the price of regular gas also neared a record high. According to AAA, the price of regular gas nationwide has soared from $3.15 at this time last year to an average of $4.02, with diesel jumping from $3.55 nationwide a year ago to $5.51 now. Moreover, the rising cost of jet fuel is expected to increase summer travel costs.

Sen. Cantwell has been a strong advocate for sustainable aviation and has worked on several legislative initiatives, including securing $297 million for the Sustainable Aviation Fuel and Low-Emissions Aviation Technology Grant Program, now known as the Fueling Aviation's Sustainable Transition (FAST) program, which was enacted in the Inflation Reduction Act. She also partnered with her Senate colleagues to introduce the Sustainable Skies Act in 2019, a version of which was also incorporated in the Inflation Reduction Act to provide a tax credit to increase the supply of sustainable aviation fuel. As ranking member and former chair of the Senate Commer Committee, Sen. Cantwell has worked to spur the adoption of more environmentally friendly and technologically advanced aviation technologies. In 2024, Sen. Cantwell led passage of the FAA Reauthorization Act, which secured historic increases in FAA Research, Engineering, and Development (RED) funding -- $1.59 billion over five years -- to help the U.S. stay competitive in the global race for innovative and sustainable aerospace technologies and maintain the Puget Sound area's world-class aviation workforce.