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Earlier this year, it seemed as if airlines finally knew how to weather geopolitical and economic uncertainty. Despite the introduction of tariffs and conflicts in the Middle East in 2025, some airlines, like Delta and United, were able to make a healthy profit.
But now with the Iran war causing fuel prices to spike, the airline industry might be in for a crude awakening this year.
Average fuel prices in major U.S. cities were at $4.69 a gallon as of Monday, according to data from Argus Media. And airlines are starting to pass on those high fuel costs to customers. Delta, United, and JetBlue have already announced that they are raising baggage fees.
And United CEO Scott Kirby has said airfares would need to increase by 20% to offset fuel costs.
“The Iran conflict has flipped the airline industry on its head, as fuel costs have more than doub
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