As oil prices continue to rise and airlines brace for a global shortage amid the ongoing war in Iran, air travelers are beginning to see the impact in the form of climbing costs.
According to recent data from flight information group OAG, average airfares in the past week reached $465, which is the highest price point for the same period since at least 2019, before the onset of the COVID pandemic.
Raising airfares is one of the most obvious ways airlines will seek to offset rising fuel costs, as most carriers no longer hedge them like many cruise lines. Executives have been transparent about it in recent weeks, with United Airlines CEO Scott Kirby clearly stating, "We have to raise prices to deal with higher fuel prices."
Airlines will also look to increase ancillary fees to recoup some of those fuel expenses. JetBlue has already raised its checked baggage fees in response to increased operating costs this spring.
It's important to note that revenues from these fees are not subject to federal excise taxes, meaning airlines aren't likely to bring them back down once the oil market stabilizes.
Checked luggage at airport (Photo Credit: IATA)
In addition to raised fares and fees, travelers will notice reduced flight schedules in the coming weeks and months. For example, United will drop about 5 percent of planned flights, mostly during off-peak times such as redeyes and midweek trips, during the second and third quarters of 2026.
Meanwhile, American Airlines CEO Robert Isom said the carrier is "certainly going to be nimble in terms of capacity to make sure that supply and demand stay in balance" at a recent JPMorgan conference.
Despite the price increases, air travel demand remains strong heading into spring, with U.S.-based travel agency air ticket sales totaling $9.6 billion in February, after reaching a record $10 billion in January.
That same Airlines Reporting Corp. (ARC) data showed that the average ticket price for February 2026 came in at $601, up 3 percent from January 2026 and 7 percent from February 2025.
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