Airlines are cutting millions of seats and hiking fares due to soaring jet fuel prices amid the ongoing conflict in the Middle East. Airlines have cut 9.3 million seats for the period of June 1 to September 30. Qatar Airways alone has slashed two million seats scheduled for June through October.
The average international airfare from the US was $1,101 in the last week of April, up 16 percent from last year. Domestic fares in the US have risen 24 percent year-on-year according to Kayak. This trend stems from rising jet fuel prices, which have more than doubled since the US-Israel attack on Iran.
Several major airlines are involved in this adjustment. Delta Air Lines committed an additional $500 million annually to staff as part of a new pay raise, reflecting its focus on employee compensation during these challenging times. Lufthansa has also cut around 20,000 short-haul flights.
Many passengers have responded to these fare increases by booking flights sooner than expected. Eleven percent reported they booked earlier for upcoming travel between April and August. This behavior indicates a shift in travel demand amid uncertainty.
But uncertainties remain. The long-term supply of jet fuel could lead to further summer cancellations. It is unclear how rising prices will affect consumer demand moving forward.
Industry experts suggest that even when hostilities conclude, it may take months—possibly even a year—before jet fuel prices return to more normal levels.