A spike in jet fuel prices stemming from the Iran war is passing through to consumers, resulting in more expensive airfares for summer travel, analysts said.
The CEO of United Airlines, the world’s largest by capacity, warned Tuesday that ticket prices may increase by 20%.
Global airlines are making contingency plans to contend with potential fuel shortages, including limiting flights.
Fares for late spring travel are already up 10 to 15% compared to a year ago, one industry analyst told CNBC.
An element of panic-buying among flyers may also be at play.
“We’re taking the temperature check, and it’s not looking good,” she said. “The temperature is rising.”
