Jet fuel prices are rising as the war in the Middle East disrupts global oil supplies, putting cost pressure on airlines as the busy summer travel season approaches.
Experts say it’s not a question of if airfares will go up, but when, for how long and by how much. The impact may be felt most on long-haul international routes, which burn significantly more fuel than shorter flights.
Some airlines outside of the U.S. have announced fare increases or fuel surcharges in an effort to offset the growing expense.
Some airlines are partially protected from sudden price spikes through fuel hedging, a strategy that allows them to lock in fuel prices months or even years in advance. But not all airlines hedge, and those that do are usually only protected for a portion of their fuel needs, meaning prolonged price surges may cause more carriers to raise fares.
Another factor for airlines: Air space closures have required rerouting flights around parts of the Middle East, which can mean longer routes, additional fuel burn and higher operating costs.
Airlines can add or increase fuel surcharges, an extra fee common among carriers outside of the U.S. that’s added on top of the base ticket price.
Major U.S. carriers, however, don’t charge a separate fuel surcharge. Instead, they build fuel costs into the overall ticket price.
Airlines also may adjust what they charge for premium add-ons — such as seat upgrades, extra legroom seats, checked bags or priority boarding — as another way to offset higher operating costs. For consumers, that means even if the base fare doesn’t rise immediately, the total cost of a trip could still increase once additional fees and upgrades are factored in.
