12.6 Million Gallons: Southwest Airlines Shipped Jet Fuel On A Boat Due To Fears Over Supply

Published Jul 24, 2026, 5:26 AM EDT A graduate in German, Jake has a passion for history and regional aviation, and enjoys sampling new carriers and aircraft. He has visited OEM facilities as far and wide as Bristol, Toulouse, and Seattle, and recently enjoyed the milestone of flying his 150th sector as a passenger. Based in Norfolk, UK. Southwest Airlines has revealed that it resorted to shipping in jet fuel by boat earlier this year when increased volatility was causing concerns regarding its fuel supply. Facing supply constrictions, the carrier shipped almost 13 million gallons from Texas to Los Angeles, saving it from a potentially costly pinch point. The situation highlights the fluid nature of fuel costs even between different US states. The fuel that Southwest transported in that shipment represented less than 3% of its total fuel usage in the second quarter of 2026. Even so, with Q2 having been marked by increased volatility with regard to fuel supply and prices as a result of the US's military activity in Iran and the subsequent disruption to the oil industry and supply chain in the Middle East, even small changes can make a big difference. A Novel Solution Credit: Shutterstock According to reporting on the matter by CNBC, the seaborne shipment represented a first for Southwest Airlines. Tom Doxey, the carrier's CFO, told the publication that the ship arrived in Los Angeles on May 28, having sailed from Houston and passed through the Panama Canal en route. It was carrying 12.6 million gallons, representing around 2.23% of the 564 million gallons used by Southwest in Q2. The need to ship fuel to California from elsewhere reportedly arose from the fact that, amid the ongoing fuel crisis, the Golden State was an area where there were particularly high levels of concern regarding supply. This had also driven prices to much higher levels than elsewhere, due to the West Coast being more reliant on foreign fuel imports. Commenting on the novel solution, Doxey told CNBC that: "It brought like a week's supply to the West Coast at a time when supply was most constricted, (...) when it was most at risk." Fuel Price Hikes Look Set To Hit Southwest's Q3 Earnings Credit: Shutterstock Reporting on the matter by CNBC also highlighted an interesting regulatory loophole at the heart of Southwest Airlines' seaborne fuel shipment. Specifically, it was able to work around the Jones Act and not use a US ship to transport the fuel (as is normally required for boats sailing from one US port to another). This was because the law was waived in March amid Iran-related disruption to shipping. Still, even though Southwest Airlines was able to ensure its fuel supply by switching to seaborne shipping in this instance, the carrier's financials are still taking something of a hit as far as fuel costs were concerned. Indeed, CNBC notes that it spent nearly $900 million more on fuel in Q2 of 2026 than it did in the same period in 2025. This looks set to have more of a long-term impact looking into Q3 and beyond. Simple Flying Quiz Think you really know Southwest Airlines? Answer 10 questions and put your knowledge to the test Simple Flying Quiz Think you really know Southwest Airlines? Answer 10 questions and put your knowledge to the test Indeed, according to CNBC, Southwest Airlines actually performed rather well on the financial front in Q2, with its second-quarter profit and revenue figures respectively rising by 9% and 16.4%. However, in the long run, its Q3 adjusted earnings forecast fell below analysts' predictions, at $0.50-75 per share compared to the projected $0.82. Still, by increasing fares, it has been able to mitigate fuel price hikes. A Major Challenge For The Industry This Year Credit: Shutterstock Ever since the US and Israel commenced their military activity in Iran earlier this year, the aviation industry and its passengers have been hit by a domino effect of fuel price hikes and flight cuts. Smaller airlines proved particularly vulnerable to these threats, with VIP Maldivian premium carrier BeOnd announcing in April that it would be pausing all of its scheduled flights until the late-October IATA season change. That same month, Ryanair Group CEO Michael O'Leary asserted that the UK was among the most vulnerable countries as far as this volatility was concerned, due to its reliance on Middle Eastern fuel imports. However, the fuel crisis was ultimately a global one, with airlines all around the world having to make cuts. For instance, as seen in the video above, Lufthansa alone shelved 20,000 services.