U.S. airlines raising summer fares

U.S. airlines are charging more for summer flights as a jet-fuel spike lifts costs, and carriers say many travelers are still paying. (cnbc.com) CNBC reported April 28 that airline executives are forecasting strong second-quarter revenue and expect summer demand to help cover higher fuel bills. Delta Air Lines and United Airlines are among the carriers signaling travelers keep booking despite fare increases. (cnbc.com) The fuel shock has been steep. CNBC reported U.S. jet fuel rose from $2.50 a gallon on Feb. 27 to $4.88 on April 2 after the Feb. 28 U.S.-Israel strikes on Iran. (cnbc.com 1) (cnbc.com 2) Higher operating costs are already showing up in ticket data. Yahoo Finance, citing Kayak, reported domestic round-trip airfare averaged $358 as of April 13, up 18% from a year earlier, while international economy fares averaged $1,064, up $115. (finance.yahoo.com) Travelers are adjusting rather than walking away entirely. USA Today reported people are swapping some international vacations for domestic destinations and using flexible travel dates to hunt for lower fares. (usatoday.com) Airlines have also been raising other charges alongside base fares. CNBC reported United Airlines increased checked-bag fees by $10 earlier in April as carriers tried to offset fuel costs that had jumped more than 80%. (cnbc.com) There are signs the price increases are starting to hit demand at the margin. Yahoo Finance reported Bank of America card data showed consumers are beginning to push back on high ticket prices, even as airlines say near-term summer bookings remain resilient. (finance.yahoo.com) (cnbc.com) That leaves airlines with a narrow window: keep fares high enough to recover fuel costs without pushing late-booking travelers out of the market. Executives told CNBC the bigger question is demand later in 2026, when consumers have not booked as far ahead. (cnbc.com)