Summer travelers face higher costs, fewer options as Iran war drives up jet fuel prices

A new reality is setting in for travelers worldwide: rising fares and fees, fewer flight options and difficult decisions about whether a trip is worth the cost. The culprit is volatile oil and jet fuel prices, which have spiked sharply since the war in the Middle East began and fighting near the Strait of Hormuz created a chokepoint for global oil supplies. “Volatility is the real story here,” said Shye Gilad, a former airline captain who now teaches at Georgetown University’s business school. “Right now, the airlines are trying to make bets on what they think will happen in the future.” Airlines are responding cautiously, trimming schedules and adjusting prices in ways that experts say will ripple unevenly across the market but ultimately affect nearly every type of traveler. Budget airlines and the customers who rely on them are likely to feel the pinch first and most acutely, experts say, but even travelers in premium cabins won’t escape the higher prices and less convenient schedules. Oil prices have swung wildly in recent weeks, briefly topping $119 a barrel at one point, plunging Wednesday below $95 on news of a two-week ceasefire that temporarily reopened the Strait of Hormuz, and then climbing back toward $100 on Thursday as uncertainty over the fragile deal grew. Iran again closed the key artery for global oil shipments in response to Israeli strikes Wednesday in Lebanon. “When prices move quickly in both directions, it’s very hard for airlines to make predictions,” Gilad said. In other words, even when oil prices drop, travelers may not see relief right away. “At this level of fuel, it’s hard to call anything temporary,” Delta Air Lines CEO Ed Bastian told reporters this week after the Atlanta-based carrier raised its checked baggage fees. Bastian said Wednesday as Delta kicked off the earnings season for U.S. airlines that the higher fuel prices are expected to add $2 billion in operating expenses in the second quarter alone. United Airlines CEO Scott Kirby said in a recent memo to staff that if fuel prices stay elevated, it could add $11 billion in annual costs. “For perspective,” Kirby wrote, “in United’s best year ever, we made less than $5B.” According to the International Air Transport Association, the average global jet fuel price rose to $209 per barrel last week, up from roughly $99 at the end of February when the war started. Travelers from the U.S. to Hong Kong and New Delhi are paying the price. U.S. carriers are embedding the higher operating costs into ticket prices and add-on fees. Delta, United, American Airlines, Southwest Airlines and JetBlue have all increased checked baggage fees. Both United and American are also moving beyond add-ons to adjust pricing. United said last week it is bringing the “pay for what you want” approach already standard in economy to its premium cabins, turning perks like advanced seat selection and fully refundable tickets into optional extras. American announced Thursday that passengers in basic economy will have to pay extra to pick their seat beginning May 18, including elite-tier loyalty members. And later this year, basic economy passengers without elite status or an eligible co-branded credit card will be assigned to boarding Group 7, while those with higher status will still board earlier even when purchasing the lowest fare. READ MORE: 13wham.com _______________ Stay up to date with our social media: 13 WHAM on Facebook:   / 13wham   13 WHAM on Twitter:   / 13wham   13WHAM on Instagram: https://www.instagram.com/13whamtv/?h... 13WHAM on TikTok: https://www.tiktok.com/@13wham?lang=en 13 WHAM Daily Local News Digest:    • 13WHAM Local News Digest   For more information, visit https://13wham.com/ Have a news tip? Send it directly to us: Email us: [email protected] Call the Newsroom: (585) 334-8700 WHAM is a NY based station and a ABC Television affiliate owned and operated by Deerfield Media, Inc and receives certain services from an affiliation of Sinclair Broadcast Group. Sinclair Broadcast Group, Inc. is one of the largest and most diversified television broadcasting companies in the country today. #13WHAM #News #Rochester #NewYork