Fuel-price shock hits Hawaii's visitor industry as Iran conflict continues

Fuel-price shock hits Hawaii's visitor industry as Iran conflict continues reports that Hawaii’s tourism sector is absorbing another fuel-driven impact as oil prices climb amid escalating tensions. The article links the latest rise in jet fuel to U.S. bombing strikes in Iran aimed at keeping the Strait of Hormuz open, sending oil up by more than $1 a barrel in post-settlement trading. UHERO, the University of Hawai’i Economic Research Organization, warned in its May forecast that jet-fuel volatility would continue to pressure long-haul travel through year-end. It says fuel costs roughly doubled since the Strait first closed, reaching about $4.90 per gallon in early April, and that fuel’s share of airline operating expenses jumped to nearly 45% from a typical 25% to 30%. UHERO estimates round-trip fare increases of $120–$145 from the U.S. West Coast and $200+ from the East Coast. Major carriers including United and Delta have cut schedules, while arrivals are up 2.9% year to date through May.