War in Middle East could mean pricier flights soon
Heads up, travelers: jet fuel prices are spiking thanks to Middle East tensions, and United Airlines CEO Scott Kirby says this could mean pricier flights soon.
He shared at Harvard that if these fuel costs stick around, ticket prices will likely go up in the next few months.
Oil prices spike amid Middle East tensions
US oil futures surged roughly 35% in one week after disruptions to traffic through the Strait of Hormuz, and Brent crude briefly traded above $90 a barrel.
This disruption sent jet fuel prices to their highest in recent weeks.
Unlike before, airlines do not have price protection now, so they are feeling every bit of the squeeze.
Airlines looking at raising fares
Fares could rise in the coming months as travel demand stays strong. Airlines are looking at raising not just base fares but also baggage fees and seat upgrades.
Cathay Pacific has increased its fuel surcharge after jet fuel costs roughly doubled.
Gas is not immune either: US averages hit $3.69 per gallon, with California topping $5.50, so travel is getting pricier all around.