United fares up about 20%
- United Airlines said April 22 that some summer ticket prices may need to rise 15% to 20% as jet-fuel costs jump. - Industry data published April 28 showed domestic economy fares averaging $570 in March, up 21% year over year, while bookings kept rising. - Higher fares are sticking as demand holds and low-cost rivals trim flying. (cnbc.com)
United Airlines said on April 22 that some summer fares may need to rise 15% to 20% as jet-fuel costs surge. (usatoday.com) (msn.com) Chief executive Scott Kirby said the increase would test how much travelers will absorb while the airline faces a sharp jump in fuel expense. CNBC reported United had already cut its 2026 earnings outlook to $7 to $11 a share from $12 to $14 earlier this year. (msn.com) (cnbc.com) The price pressure is showing up beyond United. Airlines Reporting Corp. said March travel-agency ticket sales rose 12% from a year earlier to $10.4 billion, with domestic trips up 5% and international trips up 1%. (cnbc.com) That same Airlines Reporting Corp. data showed average domestic economy fares at $570 in March, up 21% from a year earlier, while premium-seat prices rose 17% to $1,444 per trip. (cnbc.com) Jet fuel is usually an airline’s biggest cost after labor, so carriers tend to raise base fares, add surcharges, or increase bag fees when oil spikes. United raised its first checked-bag fee to $45 if paid in advance and $50 within 24 hours of departure on April 2. (openjaw.com) (cnbc.com) The fuel shock traces back to the Iran war that began after U.S. and Israeli strikes on February 28, according to CNBC’s reporting on airline pricing and congressional pressure. Representative Ritchie Torres said April 16 that major carriers should lower fares if fuel prices retreat. (cnbc.com) Travel search data shows how fast prices moved. Kayak told CNBC that average round-trip international economy fares rose to $998 on March 30 from $774 on February 23, while domestic fares increased to $350 from $336. (cnbc.com) Some lower-cost airlines are responding by flying less instead of trying to pass through every added dollar. Ryanair said it could cancel 10% of flights between May and July if the conflict continues, and WestJet planned capacity cuts of 3% in May and 5.5% in June. (openjaw.com 1) (openjaw.com 2) Airline executives are now betting that at least some of these fare increases will outlast the fuel spike. OpenJaw reported April 28 that analysts see fewer budget-carrier seats as one reason prices may not fall quickly even if fuel supply normalizes. (openjaw.com) For travelers, that means the summer squeeze is no longer just a fuel story. It is already showing up in higher United fares, pricier domestic tickets across the market, and fewer cheap seats if smaller rivals keep cutting flights. (usatoday.com) (cnbc.com)