The soaring cost of jet fuel due to the war in Iran will lead to significantly higher airfares. But don’t expect ticket prices to drop once fuel prices start to decline.
Higher fares are being driven by strong demand for travel as much as the cost of fuel. Despite higher ticket prices, travelers are booking tickets in record numbers at many airlines. So, as long as passengers keep flying, higher fares are likely to stay in place, no matter the cost of fuel.
“The longer consumers pay these prices and airlines get used to this revenue stream, the more likely it is (to hold),” United
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