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The war with Iran could impact the price of your plane ticket. The conflict in the Middle East has rocked global energy markets and caused the price of jet fuel to surge, from an average of $2.50 per gallon before the war started to $3.99 per gallon as of last Friday. Experts say airlines will likely pass some of those added costs onto consumers. “I think consumers are really going to see some sort of major impact on airfares in the short term,” said Christopher Anderson, a professor at Cornell University’s SC Johnson College of Business. Some airlines outside of the U.S. have already announced fuel surcharges on certain routes, such as Air India, Hong Kong Airlines and FlySafair in South Africa.Anderson said major domestic airlines are likely to tuck added costs into overall ticket prices, though they may tailor fare increases toward consumers who are less sensitive to price swings. “So, business travel, or premium fares, you’ll see those prices increase quicker,” Anderson said. “Leisure markets, your summer vacation routes, that will be a little bit slower.”Airlines may also try to recover added costs by bumping up fees for seat upgrades, checked bags, and priority boarding, among other services. If the war drags on, Anderson said airlines may also choose to reduce certain routes with lower demand. Jesse Neugarten, founder of the travel website Dollar Flight Club, expects that longer, international flights that require more fuel will see more significant impacts. Neugarten said many factors shape airfares, so it’s difficult to predict exactly how much prices will go up. He said it could take weeks or months for higher costs to trickle down, since airlines usually buy fuel in advance.”If this continues for many more months, you can expect airfare later in the year and summer to really jump,” Neugarten said. “Just assume that they’re going to get more expensive. The best thing you can do is book your trip now.” In a statement on Monday, the White House predicted that oil disruptions would be short-term. “Ultimately, once the military objectives are completed and the Iranian terrorist regime is neutralized, oil and gas prices will drop rapidly again, potentially even lower than before the strikes began,” said White House spokesperson Taylor Rogers. “As a result, American families will benefit greatly in the long-term.”National Economic Council Director Kevin Hassett told CBS on Sunday that the Trump administration is “thinking ahead about the jet fuel problem.” “We have been in discussions to make it easier for foreign ships to go from the Gulf of America over to the West Coast to make sure that we don’t have a disruption from jet fuel,” Hassett said. The White House didn’t directly answer emailed questions requesting more details on those discussions.Airlines for America, the trade association for the leading U.S. airlines, didn’t immediately respond to requests for comment.
The war with Iran could impact the price of your plane ticket.
The conflict in the Middle East has rocked global energy markets and caused the price of jet fuel to surge, from an average of $2.50 per gallon before the war started to $3.99 per gallon as of last Friday.
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Experts say airlines will likely pass some of those added costs onto consumers.
“I think consumers are really going to see some sort of major impact on airfares in the short term,” said Christopher Anderson, a professor at Cornell University’s SC Johnson College of Business.
Some airlines outside of the U.S. have already announced fuel surcharges on certain routes, such as Air India, Hong Kong Airlines and FlySafair in South Africa.
Anderson said major domestic airlines are likely to tuck added costs into overall ticket prices, though they may tailor fare increases toward consumers who are less sensitive to price swings.
“So, business travel, or premium fares, you’ll see those prices increase quicker,” Anderson said. “Leisure markets, your summer vacation routes, that will be a little bit slower.”
Airlines may also try to recover added costs by bumping up fees for seat upgrades, checked bags, and priority boarding, among other services.
If the war drags on, Anderson said airlines may also choose to reduce certain routes with lower demand.
Jesse Neugarten, founder of the travel website Dollar Flight Club, expects that longer, international flights that require more fuel will see more significant impacts.
Neugarten said many factors shape airfares, so it’s difficult to predict exactly how much prices will go up. He said it could take weeks or months for higher costs to trickle down, since airlines usually buy fuel in advance.
“If this continues for many more months, you can expect airfare later in the year and summer to really jump,” Neugarten said. “Just assume that they’re going to get more expensive. The best thing you can do is book your trip now.”
In a statement on Monday, the White House predicted that oil disruptions would be short-term.
“Ultimately, once the military objectives are completed and the Iranian terrorist regime is neutralized, oil and gas prices will drop rapidly again, potentially even lower than before the strikes began,” said White House spokesperson Taylor Rogers. “As a result, American families will benefit greatly in the long-term.”
National Economic Council Director Kevin Hassett told CBS on Sunday that the Trump administration is “thinking ahead about the jet fuel problem.”
“We have been in discussions to make it easier for foreign ships to go from the Gulf of America over to the West Coast to make sure that we don’t have a disruption from jet fuel,” Hassett said.
The White House didn’t directly answer emailed questions requesting more details on those discussions.
Airlines for America, the trade association for the leading U.S. airlines, didn’t immediately respond to requests for comment.
