U.S. Airlines Raise Fares 23.4% as $4-to-$4.50 Jet Fuel Cuts Profit Estimates
Updated
Updated · CNBC · Oct 5
U.S. Airlines Raise Fares 23.4% as $4-to-$4.50 Jet Fuel Cuts Profit Estimates
3 articles · Updated · CNBC · Oct 5
Summary
Wall Street analysts have cut U.S. airline profit estimates even as carriers push through steep price increases, with August airfare up 23.4% from a year earlier.
Jet fuel — lifted by the Iran war and prolonged Strait of Hormuz disruptions — has stayed volatile and expensive, and executives say they see little near-term relief while travel demand remains resilient.
Holiday pricing shows that pricing power: Hopper pegged Thanksgiving domestic round trips at $402, up 31%, and Christmas fares at $452, up 23%, as travelers book earlier despite higher costs.
Airlines are responding by trimming weaker routes, adding more premium seats and likely curbing capacity further; Spirit's May collapse already removed 1% to 2% of U.S. market capacity.
Delta's results on Friday will test whether carriers lower fourth-quarter outlooks and signal slower 2027 growth, especially if jet fuel remains near $4 to $4.50 a gallon.