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US Airlines Raise Fares Amid Rising Fuel Costs
· Confirmed
In Short: Major US airlines are increasing fares to offset higher fuel costs, despite a slight decline in passenger numbers.
Major US airlines are raising fares to offset soaring fuel costs, despite a slight decline in passenger numbers, NBC News reported.
According to the U.S. Energy Information Administration, jet fuel prices have surged from $2.43 a gallon before the US-Israeli war on Iran began in February to $4.63 on October 20.
Six major U.S. airlines plan to grow domestic capacity by 3.0% in the fourth quarter from a year earlier and 3.8% in the first quarter of 2027, a sharp acceleration from just 0.2% growth in the third quarter, according to Airlines for America, citing Cirium data.
Southwest CEO Bob Jordan told analysts that higher fares are not causing an erosion of volumes, noting a nearly 22% increase in average passenger fares in the first nine months of the year.
However, the Transportation Security Administration screened 2.9% fewer people at U.S. airports in the quarter than a year earlier, raising questions about whether higher fares are beginning to discourage travel.
American Airlines reported deeper losses in 2026 and updated its forecast to reflect anticipated losses between $1 and $1.60 a share on an adjusted basis this year, due to elevated fuel prices.
United Airlines CEO Scott Kirby has doubled down on calls for a national wealth tax and added compulsory national service to his list of policy proposals.
Spirit Airlines announced it is going out of business after 34 years, saying it has started winding down operations.
In a separate incident, a 67-year-old Arizona man was taped head-to-toe by American Airlines crew and passengers after allegedly making racist and misogynist comments during a flight.
What this adds
Despite the fare increases, airlines continue to expand their capacity, indicating a strategic shift towards higher fares over fuller planes.
The slight decline in passenger numbers suggests that higher fares may be beginning to impact travel demand, though airlines maintain that the trade-off is worth it.
The incident involving the Arizona man highlights ongoing issues with unruly passengers on flights, adding to the operational challenges faced by airlines.
Background
Major US airlines are increasing fares to offset higher fuel costs, despite a slight decline in passenger numbers.
What's confirmed
- Major US airlines are raising fares to offset soaring fuel costs, despite a slight decline in passenger numbers, NBC News reported.
- According to the U.S. Energy Information Administration, jet fuel prices have surged from $2.43 a gallon before the US-Israeli war on Iran began in February to $4.63 on October 20.
- Six major U.S. airlines plan to grow domestic capacity by 3.0% in the fourth quarter from a year earlier and 3.8% in the first quarter of 2027, a sharp acceleration from just 0.2% growth in the third quarter, according to Airlines for America, citing Cirium data.
- Southwest CEO Bob Jordan told analysts that higher fares are not causing an erosion of volumes, noting a nearly 22% increase in average passenger fares in the first nine months of the year.
- However, the Transportation Security Administration screened 2.9% fewer people at U.S. airports in the quarter than a year earlier, raising questions about whether higher fares are beginning to discourage travel.
- American Airlines reported deeper losses in 2026 and updated its forecast to reflect anticipated losses between $1 and $1.60 a share on an adjusted basis this year, due to elevated fuel prices.
- United Airlines CEO Scott Kirby has doubled down on calls for a national wealth tax and added compulsory national service to his list of policy proposals.
- Spirit Airlines announced it is going out of business after 34 years, saying it has started winding down operations.
- In a separate incident, a 67-year-old Arizona man was taped head-to-toe by American Airlines crew and passengers after allegedly making racist and misogynist comments during a flight.
What's still developing
- Yet profits have still been squeezed as jet fuel prices surged roughly 90% since the US-Israeli war on Iran began in February, forcing several major carriers to cut earnings forecasts.
- JetBlue Airways initiated a $10 one-way increase in domestic published fares on Wednesday, JP Morgan said, following a similar United-led increase the previous week that Southwest subsequently matched.
- U.S. air fares rose an average of nearly 23% year-on-year in the seven months through September, far outpacing the 3.6% average increase in overall consumer prices, according to Labor Department data.
- Passenger Richard Olenick helps keep an unruly traveler restrained with duct tape and zip ties aboard an American Airlines flight following an alleged violent mid-flight attack. (Courtesy Richard Olenick) "Everything was fine, until it wasn't," Olenick told FOX 10.
- On April 30, 2026, Boeing announced that Biman Bangladesh Airlines had signed for eight 787-10s, two 787-9s and four 737 MAX 8 aircraft.
- “The 787-10 delivers unmatched efficiency and seamless commonality with Biman’s existing 787s, while the 737-8 is the ideal bridge from their 737 fleet with its versatility, fuel savings and crew commonality.” At present, Biman operates a fleet of 14 Boeing aircraft, comprised of 787-9s, 787-8s, 777s and Next-Generation 737s.
- Avelo Airlines CEO Andrew Levy said the airline's strategy isn't changing as the carrier expands to McKinney, Texas, and expects strong demand through the holidays.
- "Now we're back up to levels that are, you know, I'll just call them uncomfortably high." The global average jet fuel price rose 9% from the previous week to $171.01 per barrel last week.
- Dow Jones| Nasdaq | S&P 500 | US Stock Market Today |Highlights: Wall Street ended higher on Wednesday, with all three major US stock indexes gaining as investors returned to beaten-down stocks after a three-day losing streak.
- Small-cap stocks outperformed, while airlines, miners and regional banks led sector gains.
- New York City's biggest airport is losing service from one of the top budget airlines in the U.S. Frontier Airlines plans to wind down all operations at John F.
- It's time to book: When to buy holiday, spring break and summer flights for the best fares in 2026-27 The move doesn't come as a major shock.
Sources
- Fox Businesslink
- Gazette-Newslink
- NBC Newslink
- Fox10Phoenixlink
- Aerotimelink
- Fox Businesslink
- Economictimeslink
- Theaviationhublink
- Thepointsguylink
- Contentlink
- Bnonewslink
- BBClink
- AP Newslink
- Insideflyerlink
- Oilpricelink
- WarpBeat — background on US Airlines Raise Fares Amid Rising Fuel Costs link
- NBC News — video link