Nick Ewen, editor in chief of The Points Guy, told NPR that jet fuel is typically an airline’s second-largest expense, trailing only labor.
“Consumers are very price sensitive. So airlines can’t just pass that entire ... increase in fuel costs through ticket prices,” Ewen told NPR. “Instead, they’ve started looking for other ways that they can potentially increase fees or increase revenue outside of ticket prices.”
To offset hundreds of millions in additional expenses, major U.S. carriers — including American, Alaska, Delta Air Lines, Southwest and United — have increased checked baggage fees. Most announced increases totaled around $10 per bag in April, with airlines citing geopolitical uncertainty as a driving factor behind the increase.
Beyond baggage fees, many domestic and international airlines are cutting costs by reducing flight schedules or canceling routes entirely. According to NerdWallet, carriers including Air Canada, Delta Air Lines, Lufthansa and Ryanair have already announced schedule reductions. These suspensions are expected to complicate air travel as the busy summer season approaches.
Virgin Atlantic, Air France-KLM, Korean Air, Emirates, Lufthansa, Cathay Pacific and Air India have also implemented similar price hikes.
During an April earnings call, American Airlines projected a fuel cost of $4 per gallon, a rise from the $2.39 average reported by Bureau of Transportation Statistics in February. That shift represents a $4 billion increase in operating expenses through 2026, NerdWallet reported.
Advice for travelers
Relief is unlikely to arrive before the summer travel rush. Ewen told NPR that even if a deal were reached today to stabilize supply, it would take “weeks, if not months” for those changes to reach the consumer.
To navigate the current volatility during summer travel, Ewen recommends a few steps to save where travelers can. One being to book flights early, the sooner the better. “We do not see prices dropping anytime soon,” Ewen said. “In fact, they will probably only get higher.”
Ewen also told NPR he advises travelers to avoid basic economy. Because of current market uncertainty, Ewen said avoiding restrictive economy fares that lack flexibility is a safe way to book flights.
“I always opt to go for the lowest flexible fare — not refundable — but at least I know if I have to make a change, I’m not going to be penalized,” he shared with NPR. “Or if I need to cancel, I’m going to get that back as a credit.”