Airline officials warned that fares will surge further if the Iran war does not end soon.
The closure of the Strait of Hormuz has hit oil supplies, doubling the cost of jet fuel. US domestic flight prices were up 21% year-on-year in March, while AirAsia’s chief likened the fallout for the air travel sector to widespread shutdowns during the pandemic. The increase in costs is yet to hit bookings, but passengers are being choosier about destinations.
Europe — which is close to tipping past a key fuel-supply threshold — has seen similar price increases, and thousands of flights have been cancelled. Airlines are bracing for more pain after the EU said they must reimburse passengers for those cancellations.
