[Getty Images]
[Getty Images]

Even as jet fuel prices fall amid ongoing US-Iran negotiations over implementing a war-ending memorandum of understanding, airlines show little urgency to pass the savings on to passengers.

Time magazine reported Tuesday (local time) that while oil prices are declining, airfares remain elevated due to surging summer travel demand and lingering risks tied to Iran, warning readers: "Don't expect prices to drop anytime soon."

Jet fuel prices nearly doubled during the height of the US-Iran conflict, climbing from $2.50 per gallon to $4.88.

Prices fell back to $2.91 per gallon by June 25, but fuel costs had already surged sharply — US airlines spent $6.5 billion on fuel in April alone.

In response, airlines cut domestic routes, raised fares by roughly 15 percent and increased baggage fees, yet analysts say domestic air travel within the United States is still faring worse than a year ago.

Citing experts, Time said that even if the Strait of Hormuz reopens and oil prices continue to fall, it will take time before travelers feel any meaningful relief in ticket prices.

CNN also reported that jet fuel prices nearly doubled in the early weeks of the war, prompting airlines to raise fares, reduce flight frequencies and hike baggage fees — effectively passing costs on to consumers. Despite oil prices falling over the past two months, airlines have no plans to lower their elevated fares, the network said.

"The reason high airfares persist is demand," the outlet said. "During the peak summer travel season, consumers tend to absorb price increases, and available seats are shrinking."

According to a Fortune report citing data from flight search site Skiplagged, domestic airfares in the United States rose 23.2 percent from March last year through this month, while international fares climbed 11.5 percent over the same period. Domestic ticket prices this summer have hit their highest level since 2022.

As US-Iran negotiations continue, travelers hoping for a break on airfares may have to wait — airlines are in no rush to give back what the market is still willing to pay.


ygmoon@heraldcorp.com