Oil Price Shock Could Mean 10%+ Fare Hike, $24 Billion in Costs for U.S. Airlines

The war with Iran could cost U.S. airlines $24 billion in additional jet fuel expenses, according to a new analysis by Skift Research, which estimates that ticket prices would need to rise at least 11% to offset the increase. Globally, the impact could reach $100 billion or more.

Oil traders had been surprisingly calm since the U.S. and Israel first launched strikes on Iran on February 28. But that changed this weekend as oil prices exploded above $100 a barrel, the highest price since 2022. 

This spike presents a big challenge for airline executives: Jet fuel is the single largest expense for most U.S. airlines, accounting for $1 out of every $5 that an airline spends. 

Oil prices pulled back again on Monday afternoon after President Donald Trump said the war effort was “very far ahead of schedule” and “very complete, pretty much.”

But it’s still a volatile situation. Just how much could this Gulf War oil price shock cos