Amid War in Iran, Travel Prices Experience Largest Increase in More Than a Year

by Mia Taylor
Last updated: 2:25 PM ET, Wed March 11, 2026

The Trump Administration’s war in Iran is driving up travel costs for Americans, impacting everything from airline tickets to gas prices for road trips.

New data from NerdWallet shows airfare costs are up 7.1 percent year-over-year as of March. That’s the largest increase in travel costs in more than a year.

“The biggest storyline impacting airfares right now is the Iran war, which has caused oil prices to surge,” says the NerdWallet Travel Inflation Report for March 2026.

“In the event of prolonged conflict, consumers should expect airfares to rise as airlines face increased costs,” adds the report.

Equally notable, the report indicates that if the conflict initiated by the United States and Israel is prolonged, keeping oil prices high, it could drive further airline consolidation, especially among low-cost carriers already struggling financially and unable to take further hits to their bottom lines.

That too would be bad news for consumers: “Whenever airlines merge, go out of business or even pull out of key markets, that usually translates to less competition on certain routes. These situations give other airlines more pricing power to charge higher fares on certain routes,” says the NerdWallet report.

Prices tick upward in nearly all travel categories

The cost of airline tickets is merely one area where consumers are being impacted right now. The tab for dining out has also skyrocketed due to inflation, which has been triggered largely by the Trump Administration's tariff policies.

Year-over-year, the cost of eating out is up 3.9 percent. But when viewed over a decade, the cost of dining out has increased dramatically, with February 2026 prices 50.5 percent higher than 10 years ago.

That's higher than the 38 percent inflation rate across all items, meaning restaurant prices have risen more than those of many other categories of goods, the NerdWallet report says.

"Airfare tends to grab headlines, but dining out can easily become the biggest drivers of travel budgets," says NerdWallet's Sally French.

"A lot of that increase reflects broader inflation pressures, including higher labor costs, food input costs and rent," French explains. "For travelers, it shows up in the form of $18 airport sandwiches and $30 lunches at fast casual restaurants in major cities."

Car rental prices year-over-year have risen 2.7 percent, while movies, concerts and theater prices are up 5.5 percent. The only category of travel cost that has not increased is hotels and motels, which are down 2.2 percent.

Tips for stretching travel budgets

While travel costs are soaring, NerdWallet’s Sally French says there’s one reason not to panic.

“While airfares are up compared to last year, they’re actually down slightly compared to 10 years ago,” French explains. According to NerdWallet's analysis, if you zoom out to the past decade, airfares are down by 1.0 percent.

By comparison, the cost of all items tracked by the Bureau of Labor Statistics (BLS) over that 10-year timeline is up 37.4 percent. For consumers still feeling the pinch on those year-over-year ticket price hikes, French has some advice.

“If you’re concerned about rising airfare or gas prices, the best way you can save as much money as possible is simply by being flexible, such as booking midweek departures, which tend to be cheaper than weekend travel days,” says French.

As for dining out, French suggests being “intentional” about when you engage in restaurant meals, particularly at high-end restaurants. “The most expensive, award-winning restaurants aren’t necessarily the best way to get an authentic, cultural experience,” she says. “Visiting local markets or finding a quirky hole-in-the-wall restaurant can sometimes make for a more memorable meal anyway.”

And if driving is part of your summer plans, be sure to factor in higher fuel costs into your travel budget.