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Why Airfares May Stay High Even if Fuel Prices Decline, According to an Airline
- U.S. carriers are increasingly flying with empty seats rather than cutting fares, betting that disciplined pricing will protect profits amid soaring fuel costs, with passenger revenue across major airlines rising nearly $8.8 billion in the third quarter.
- Jet fuel prices have surged roughly 90% since the US-Israeli war on Iran began in February, rising from $2.43 per gallon to $4.63 on October 20, forcing several carriers to cut their annual earnings forecasts.
- American Airlines CFO Devon May warned that airfares likely will remain elevated even if oil prices decline, noting the carrier must "generate higher yield" to offset rising fuel expenses after reporting deeper losses for 2026.
- Following similar moves by other carriers, JetBlue Airways initiated a $10 one-way increase in domestic fares on Wednesday, while U.S. airfares rose an average of nearly 23% year-on-year through September, outpacing the 3.6% growth in overall consumer prices.
- Major airlines plan to grow domestic capacity 3.0% in the fourth quarter and 3.8% in the first quarter of 2027, a sharp acceleration from the 0.2% growth in the third quarter that may intensify competition and complicate fare-gain sustainability.
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34 Articles
34 Articles
The IndependentReposted by 
The Independent (US)
The Independent (US)Why your plane ticket might not get cheaper even if fuel prices fall
Average US airfares rose from $405 in late 2025 to $436 by mid-2026, according to federal data
·London, United Kingdom
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This year, fuel prices could account for 30 percent of airline expenses, reaching a figure as high as $100 billion higher than last year. Fuel costs are forcing some carriers, including Poland's LOT Polish Airlines, to suspend some flights.
·Warsaw, Poland
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Cheaper fuel is no guarantee of cheaper flights. American Airlines expects to maintain its price level, and several airlines are warning of further increases next year.
·Copenhagen, Denmark
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Coverage Details
Total News Sources34
Leaning Left6Leaning Right4Center12Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 27%
C 55%
R 18%
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