Apr 25, 2026
More price increases for flights may be on the way, as the cost of jet fuel remains elevated since the start of the Iran war.
CEO of United Airlines, Scott Kirby, said on a recent earnings call that ticket prices might rise 15% to 20% to offset the spike in jet fuel (1). Kirby said that United's "goal is to do whatever it takes to recover 100% of the increase in jet fuel prices as quickly as possible."
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The airline has already raised prices, United Executive Vice President and Chief Commercial Officer, Andrew Nocella, said on the call.
"Late in the first quarter, we implemented five broadly successful price increases, along with an increase in baggage fees that began to offset the increase in the price of jet fuel," he explained. "Price increases in response to the increase in jet fuel have been significant and across the board."
Nocella also said that "sell-in yields for all future travel are now up 20% year-over-year," which, according to a Fox Business report, means that passengers are now booking future flights at costs 20% higher than last year (2).
Kirby added that, when it comes to fuel prices, the company is "assuming that fuel may remain higher for longer." The company expects that the increases will "lead to less overall demand."
However, United believes that demand is still strong enough to pass on the increased cost of fuel, Chief Financial Officer Michael Leskinen said on the call.
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"We believe we have the ability to pass on the increase in fuel due in large part to our brand loyal customers, continued demand strength, and preference to fly United even at higher fares," Leskinen said.
Prices have already risen
Other airlines have already reduced flight routes and tacked on higher baggage fees in response to higher fuel costs.
In early April, Delta announced higher fees for checked bags (3), hiking the cost of a first and second checked bag on most routes by $10 to $45 and $55, respectively, and charging $200 for a third bag, an increase of $50.
United also increased checked baggage fees by $10 in early April, for passengers traveling in the U.S., Mexico, Canada and Latin America; the first checked bag now costs $45, and the second $55 (4). Plus, if you check your bag less than 24 hours before departure, there is an additional $5 fee.
JetBlue also raised checked baggage fees (5), with domestic economy passengers paying $39 for their first bag, up from $35. During peak travel periods, it will cost $49. Fees for a second bag went from $50 to $59, and to $69 during peak periods.
American Airlines also boosted the cost to check a bag for domestic and short-haul international flights to $50 (6), and Southwest raised fees by $10, up to $45 for the first checked bag (7).
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But so far, United is the only major U.S. airline to say that ticket prices are going up, as well, though that could change (8).
Prices for jet fuel have increased by nearly 70% compared to before the start of the war in Iran, according to Fox Business (9).
Higher flight costs — mostly in the form of increases to baggage fees — came quickly on the heels of the war. But it may take longer for consumers to feel the other impacts of the conflict on the cost of goods.
For Americans thinking of summer travel, a jump in airline prices might make them think twice before booking those tickets.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Reuters (1); Fox Business (2),(9); Delta Air Lines (3); NBC New York (4); JetBlue (5); American Airlines (6); Southwest Airlines (7); The Wall Street Journal (8)
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
