"For many airlines, jet fuel is one of their largest expenses. As a result, popular global carriers such as Qantas, Scandinavian Airlines, and Air New Zealand have increased their airfares this week to help cover costs. While US airlines have not yet announced similar ticket hikes, US flight prices will need to rise by at least 11% to cover the current increase in jet fuel expenses."
"The key thing for us to understand is that the situation remains uncertain and fluid. Things can change at any time without much of a warning. It's not clear whether oil prices will continue to drop back to normal, and experts say the market is likely to remain volatile."
"Fuel surcharge fees can be as much as 5 to 10% of the airfare, according to estimates from Arnot. Surcharges to cover rising fuel costs can't be added retroactively to existing bookings-so travelers who have purchased their airfares shouldn't worry about getting charged more."
Conflict in Iran has caused widespread flight disruptions across the Middle East, stranding thousands of passengers in major hubs. Rising oil prices have prompted international airlines including Qantas, Scandinavian Airlines, and Air New Zealand to increase airfares. US airlines have not yet announced fare increases, but analysis indicates American flight prices must rise at least 11% to cover current jet fuel costs. Market volatility is expected to continue as the situation remains uncertain. Airlines typically schedule flights and set fares months in advance, limiting immediate price adjustments. However, fuel surcharges—extra fees added at purchase—allow carriers to raise prices quickly, potentially adding 5-10% to airfares.
Read at Conde Nast Traveler
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