Cars and trucks aren’t the only vehicles feeling the pinch at the pump as the war in Iran drags on.
The Los Angeles Times reported that jet fuel prices have also shot up, and that experts are saying airfares are following suit.
With a busy summer travel season approaching, airlines are starting to pass the costs on to passengers through higher fares and fees, the Times reported.
“Whenever there’s a surge in oil prices, the airlines end up passing that to the consumers immediately,” Diego Bufquin, director of hospitality management and entrepreneurship at Tulane University, told the outlet. “It doesn’t take a long time.”
Airlines have been struggling around the world since the U.S. and Israel began bombing Iran late last month. Flights have to take longer paths around war zones, and higher fuel costs eat into their already thin profit margins.
Jet fuel prices account for about a third of airlines’ operating costs, so they “cannot afford to wait to upcharge their customers,” Bufquin said.
United Airlines Chief Executive Scott Kirby told CNBC this week that the spike in fuel prices will have a “meaningful” impact on the airline’s financial results.
Some airlines outside the U.S. have already added fuel surcharges to their ticket fees, the Times reported. Air India announced a phased increase in fuel surcharges on domestic and international routes last week. Hong Kong’s flag carrier Cathay Pacific announced it would charge extra on all fares to cover fuel costs starting Wednesday.
Airlines topping up at regional airports like LAX are already being hit. Jet fuel prices in Los Angeles have jumped more than 40% since the conflict in the Middle East started, according to the Times report.
National average gas prices reached $3.71 per gallon on Tuesday, according to AAA. In California, for instance, the average Tuesday was $5.52 per gallon.
“Fares are going up, but the demand is still there domestically,” Fyall said. “The only thing that really dampens demand is economic recession.”
