Airlines: High Airfares Will Outlast Iran War — SkimNews
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- Airfares soared after jet fuel prices nearly doubled in March, with September prices 22% higher than a year earlier.
- United Airlines CEO Scott Kirby stated most airlines will lose money this year and fares must remain high for the industry to survive.
- Travelers, particularly affluent ones buying high-end seats, have so far been undeterred by the higher prices.
- Competition has decreased with the shutdown of Spirit Airlines this spring and other low-cost carriers struggling.
- The average cost of a round-trip Thanksgiving flight within the U.S. is about $389, 39% more than last year, according to Hopper.
Why it matters: Consumers face a structural shift to higher travel costs as airlines, squeezed by fuel and other expenses, use reduced competition and resilient demand to maintain pricing power, locking in significant year-over-year increases for major holidays.
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