CHICAGO/LONDON, - Airlines stand to save billions of dollars on jet fuel after an interim U.S.-Iran peace deal sent oil prices lower, but passengers are unlikely to see immediate relief as tight capacity may allow carriers to keep fares well above pre-war levels.
The U.S. market offers the clearest example. Fare increases still lag this year's run-up in fuel costs, while domestic seat growth remains limited. That gives airlines leeway to use lower fuel bills to rebuild margins rather than reverse recent price increases.
