High airfares could stick around even if jet fuel prices fall
Airlines say ticket prices may stay elevated because many seats were already sold before fuel costs jumped, limiting how quickly fares can fall.
- Travelers shopping for holiday flights encountered the highest airfares in a decade on Friday, with round-trip domestic tickets averaging $402 for Thanksgiving and $452 for Christmas, according to travel-booking company Hopper.
- Fighting in the Middle East and Ukrainian strikes on Russian refineries have curtailed fuel production, pushing jet fuel prices to $4.53 a gallon on Sept. 17, according to the Argus index.
- American Airlines faces an additional $1 billion in fourth-quarter fuel costs, Chief Financial Officer Devon May said; every penny per gallon adds about $10 million to the carrier's quarterly fuel bill.
- United Chief Financial Officer Mike Leskinen noted that about 35% of the airline's tickets for the final three months were already booked before fuel prices spiked, preventing retroactive fare increases.
- Experts warn airfares may remain elevated even if fuel costs decline. Stephen Treanor, a finance professor at California State University, Chico, said jet fuel prices must "fall and stay down" for sustained fare relief.
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High airfares could stick around even if jet fuel prices fall – WTOP News
Travelers could be stuck paying high airfares even if oil and jet fuel prices fall, major U.S. airlines and industry analysts say. The price of jet fuel shot up after the Iran war began and retreated sharply in the spring before surging again as the summer went on. Such fluctuations make it harder for airlines...
The higher prices on airline tickets appear to be here to stay, as major American airlines and aviation industry analysts estimate that they will not decrease even if oil and fuel prices fall.
Passengers waiting for lower prices on airline tickets with cheaper fuel could have to wait. Airlines set their fares months before, so that the cost reduction is not immediately reflected in the ticket price.
Airline tickets could remain expensive: Fuel prices are falling, but airlines are not cutting fares - It's not just the level of fuel costs that is the problem or challenge for airlines. That's volatility, Haus said
Travelers could continue to pay expensive airfares even if oil and jet fuel prices fall, major U.S. airlines and analysts say.
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