Airlines and U.S. Travel Costs

The Associated Press reports that average U.S. jet fuel prices have jumped to $3.99 per gallon, up from $2.50 the day before the Iran war began two weeks ago, as attacks in the Persian Gulf and the effective shutdown of the Strait of Hormuz squeeze global oil supplies. Citing the Argus U.S. Jet Fuel Index and federal data showing airlines paid about $2.36 per gallon in January, analysts say it is now a matter of when, not if, consumers will see higher ticket prices, particularly on long‑haul international routes that burn more fuel. United Airlines CEO Scott Kirby has warned that airfare increases will "probably start quick" as the spike in fuel costs works through the industry, while some non‑U.S. airlines have already added fuel surcharges. U.S. carriers, which generally bake fuel into base fares rather than listing separate surcharges, are also expected to adjust fees for extras like seat upgrades and checked bags, meaning total trip costs could rise even before headline fares move sharply. Experts add that airspace closures and detours around conflict zones are lengthening some routes and further boosting fuel burn, and say persistent high prices could lead to schedule cuts or reduced service on marginal routes.