"We are seeing summer fares increase due to higher fuel costs," said Hayley Berg, chief economist at the Hopper booking platform. According to Berg, increased fuel costs have pushed summer airfares for US domestic flights up by about 10%.

Beyond rising ticket prices, air travel is set to become more expensive in various ways. Passengers can expect fewer cheap tickets and will likely face additional fees, as airlines seek to offset sharply rising operating costs.

However, airlines cannot simply raise ticket prices to cover fuel costs. Fares primarily depend on the aviation market's supply and demand. "The higher the fares, the fewer passengers will fly, or they will switch to road travel," noted Zach Griff, producer of the From the Tray Table aviation newsletter.

Jet fuel is one of the largest expenses for airlines, typically accounting for 20-30% of total costs. Fuel costs are second only to labor expenses, according to airline financial reports.

Data from the International Air Transport Association (IATA) indicates that the average price of Jet A1 aviation fuel last week was about 175 USD per barrel. Before the conflict in the Middle East erupted in late february, Jet A1 was priced around 90 USD per barrel.

Delta Air Lines reported that its fuel costs in march were 400 million USD higher than in the same period last year. United Airlines CEO Scott Kirby also informed employees that if fuel prices remain at current levels, the airline would incur an additional 11 billion USD in expenses this year. "For comparison, in our best business year ever, we only made less than 5 billion USD in profit," he stated.

According to Kirby, United would need to increase ticket prices by about 20% to fully cover the additional fuel costs, but this would reduce demand.

Consequently, airlines are exploring other methods to transfer the cost burden to passengers. United increased its baggage fees starting friday (3/4). For tickets purchased from 3/4/2026, fees for the first and second checked bags will increase by 10 USD per bag, while the third bag will see a 50 USD increase in most markets.

JetBlue also announced a 10 USD increase for most baggage fees due to rising operating costs. Griff anticipates many other airlines may soon follow suit.

"We understand that increasing fees is not ideal, but it is only done when truly necessary," JetBlue said in a statement this week.

Airlines can also save costs by cutting less profitable flights, which simultaneously increases passenger travel expenses.

United plans to reduce its flight capacity by about 5% over the next six months, including the peak summer season. Other airlines are also quietly adjusting their flight schedules in a similar manner.

Kirby views this move as preparation for a scenario where oil prices remain above 100 USD per barrel until the end of 2027, potentially even reaching a record 175 USD. Therefore, the airline will cut budget flights such as overnight flights or those on tuesday, wednesday, and saturday.

"Leisure travelers will be hit the hardest, not only because of fewer options but also higher ticket prices," Griff said.

Despite rising fares due to escalating fuel costs, demand for air travel remains high. This means airlines may have sufficient "pricing power" to continue increasing ticket prices.

Over the last month, many airlines reported record booking volumes. Recent increases in gas prices could also boost air travel demand, as long-distance car travel becomes more expensive.

"We are well-positioned to partially offset the fuel price shock," Delta CEO Ed Bastian told investors. He also noted that the airline's five best ticket sales days all occurred after the Iran conflict erupted.

Bastian added that some airlines have already raised prices, but it typically takes two to three months for fare increases due to high fuel costs to be fully reflected.

However, if oil prices continue to rise sharply, travel demand could be affected, making it difficult for airlines to increase fares. "If our fuel price forecasts are correct, the economy as a whole will also be impacted," Kirby stated.

Tu Anh (according to CNN)