Gas prices continue to rise across the country amid the ongoing war between Ukraine and Russia, which could impact the price of airline tickets moving forward.
How high are gas prices right now?
The national average for a gallon of gas hit $4.06 Monday, which is the highest since July 2008, according to AAA.
- The average price will likely hit a new all-time record this week, according to Gas Buddy. The current record is $4.10 per gallon.
- Gas prices could hit $4.25 per gallon by Memorial Day, according to Gas Buddy.
How will high gas prices impact airfare prices?
New U.S. sanctions against Russia could target oil and gas exports, which could drive fuel costs to their highest levels ever.
- The surging price of oil could lead to increased costs for airline tickets, an airline analyst told Global News.
Jim Scott, the managing partner with Royal Pacific Consulting Group, told Global News that the cost of jet fuel — which climbed from $0.60 per liter in 2020 to $0.85 in 2021 — could jump to $1.50 per liter if Russian oil is removed from the global markets.
- “That would be a doubling of the fuel price for airlines in less than a year,” he said.
Will airline ticket prices rise?
It’s unclear. Scott said that “major airlines hedge against fuel price hikes by purchasing contracts up to a year ahead of time.”
Eduardo Mariz, a senior analyst for Ishka, a global aviation information business, told The Points Guy that prices will rise no matter what because of increased demand for flights and travel after the COVID-19 pandemic.
- “Demand has recovered so they can raise fares without losing customers,” Mariz said. “U.S. carriers tend to be unhedged, but the recovery has been stronger than for others, so we will probably see them raising fares faster.”