Get ready for higher holiday airfares as airlines cut flights over high fuel costs
Major U.S. airlines are planning to cut flight capacity and increase ticket prices due to surging jet fuel costs. Executives indicate that if oil prices remain above $100 a barrel, these adjustments will likely extend into 2027.
Why it matters
Rising airfare costs directly impact consumer spending power and travel accessibility during peak holiday seasons.
Airlines executives said demand was strong for December but that they could cut more flights due to high fuel costs. Heather Khalifa/Bloomberg/Getty Images Airlines are cutting flights over the holidays due to high fuel costs. Executives said there could be further cuts and higher prices if fuel prices remain high. The price of oil surged past $100 a barrel this month. If you haven't booked your holiday flights yet, you may want to brace your wallet: Airlines are cutting options and potentially raising fares as oil prices reach new highs. After surging in the spring following the start of the war in Iran, oil prices surged yet again this summer and surpassed $100 a barrel this month; jet fuel is $4.53 a gallon as of Thursday. Data from the Bureau of Labor Statistics' latest consumer price index show airfares rose more than 23% year-over-year in August.
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