If you’re planning to fly during the typically
busy summer months, brace yourself, because airfare costs look to be increasing.
Airline executives are warning that ticket prices could climb in the coming months,
largely due to rising oil costs — a byproduct of the ongoing violence in the Middle
East.
On February 28,
the U.S. and Israel
launched a joint
attack against Iran. Tensions in the region have been rising ever since, and
the conflict is affecting major oil shipping routes. In particular, the Strait
of Hormuz, which normally sees about 20 percent of the world’s oil supply pass
through, has been closed off.
That limited
supply is driving up fuel costs worldwide, not only at the gas pump, but also
for airlines, for whom jet fuel is one of the biggest expenses. Of course,
airlines won’t simply take the hit — they’ll pass it on to the consumer, so the
cost of commercial airfare is destined to rise.
Travel industry
analyst Henry Harteveldt, founder of Atmosphere Research Group, told Men’s
Journal that the impact is already showing up in airfare prices, noting
that most of the increases he has seen thus far affect premium seats in business
and first class. He posited that travelers booking in basic economy or coach may
not feel the squeeze as much just yet. Still, he also pointed out that some
airlines have begun tacking on “fuel surcharges” for certain long-haul
international flights.
This week, United
Airlines CEO Scott Kirby warned that fare
hikes are on the way as oil prices surge, saying that he foresees oil costs
remaining elevated through 2027. And now, American
Airlines CEO Robert Isom is reportedly echoing that message. During the JP
Morgan Industrials Conference 2026, Isom indicated that skyrocketing oil prices
have already affected his company to the tune of about $400 million.
“Fuel prices have
increased rapidly over the last few weeks,” he said. “It has only been seven
weeks since we reported earnings. What we have seen since that time is about a
$400 million USD impact in terms of our first-quarter expenses.”
At this point,
there’s still a lot of uncertainty around how long the conflict will continue
or how long oil prices will stay elevated. Isom said American Airlines is
preparing to adjust based on how things unfold.
“If this proves to
be a long-term phenomenon, we know that appropriate steps will be taken to
ensure we drive revenue performance to offset it,” he said.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
