Although prices for jet fuel have fallen sharply in recent months, airlines have made it clear they have little intention of lowering ticket prices or rolling back baggage fees anytime soon, a new report detailed. Instead, airlines say strong travel demand and limited seat availability continue to support higher fares, allowing them to maintain pricing even as fuel costs ease.
Jet fuel prices surged in the early weeks of the war in Iran, nearly doubling and forcing airlines to absorb billions of dollars in additional expenses. Major carriers responded by raising ticket prices, trimming flight schedules, and increasing fees, arguing that the higher costs left them with few alternatives.
