Fuel crisis forces airlines to announce major fare increases, flight cancellations as Iran conflict escalates

The escalating conflict in Iran may no longer be contained to the Middle East, as it threatens to deliver a direct hit to the American pocketbook.

As oil prices surge and global flight paths are redrawn, international carriers are already raising fares. While U.S. airlines have not yet raised prices, a new analysis warns a double-digit fare increase could be imminent for domestic flyers.

With jet fuel one of the largest expenses for airlines, domestic flight prices would need to increase by at least 11% to offset current fuel costs, according to Skift Research. Higher fuel costs could translate into higher fares for U.S. travelers.

Global benchmark Brent crude topped $100 per barrel late Thursday morning, marking a more than 60% increase since the start of the year. The market continues to react to halted oil shipments in the Strait of Hormuz and multiple strikes on Middle Eastern oil facilities and tankers as U.S. military forces continue Operation Epic Fury.

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