High airfares could stick around even if jet fuel prices fall - MyNorthwest.com

Travelers may keep facing high airfares even if jet fuel prices fall, according to U.S. airlines and industry analysts. Jet fuel prices jumped after the start of the Iran war, fell sharply in spring, then surged again through summer. That volatility makes it harder for carriers to plan and gives them limited incentive to cut ticket prices, economist Brett House of Columbia Business School said. Jet fuel rose faster than oil and remains a major operating expense, leading airlines to trim less profitable flights and raise fares and baggage fees. However, fares haven’t tracked fuel closely: the Argus U.S. Jet Fuel Index fell from $4.88 a gallon in early April to $2.70 in June, yet average fares stayed elevated—rising from $405 late 2025 to $436 in April–June. In August, U.S. airfares were 23% higher than a year earlier.