Airfare Hikes Incoming
Heads up, travelers: jet fuel prices are spiking, which means airfares are going up and airline schedules are getting shaky [https://www.thetraveler.org/jet-fuel-spike-triggers-2026-airfare-hikes-and-schedule-turmoil/]. Book sooner rather than later for those spring and summer trips.
Jet fuel prices have spiked due to escalating geopolitical tensions, volatile energy markets, and airspace disruptions, impacting airline operations. The average global jet fuel price rose 58.4% last week, reaching $157.41/bbl. In early March 2026, prices hit levels not seen in several years. The conflict between the U.S., Israel, and Iran is a major factor, disrupting supply through key routes like the Strait of Hormuz. Jet fuel prices in Singapore jumped 140% to $230 per barrel. European jet fuel is trading at almost double the price of crude oil. About 20% of global jet fuel exports typically pass through Hormuz. Airlines are responding by increasing fares and adjusting flight schedules. Air New Zealand has already raised all fares and is considering further action. One-way economy fares have increased, for example, by NZ$10 on domestic routes. Some airlines are also modifying their winter 2026-2027 schedules to adjust to demand. Fuel hedging, a strategy to mitigate price volatility, is providing some airlines with protection. EasyJet, for example, has hedged 84% of its fuel needs for the first half of 2026. However, U.S. carriers have largely discontinued fuel hedging, making them more vulnerable to price swings. Analysts predict that jet fuel premiums could decrease if Middle East tensions de-escalate. However, fuel costs are expected to remain high until supply chain issues are resolved. The global jet fuel industry is projected to reach $471.31 billion by 2034, with a CAGR of 10.32% from 2026.
