Airlines Warn of Rising Airfares as Jet Fuel Costs Soar

Trump administration insists price hikes are temporary despite industry concerns

Apr. 2, 2026 at 12:48am

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Airline companies have warned that airfares will rise significantly due to surging jet fuel prices, which have nearly doubled since the start of the Iran conflict. However, the Trump administration remains adamant that the price increases are only temporary, even as industry leaders prepare for oil prices to stay high until late 2027.

Why it matters

The sharp rise in jet fuel costs is putting major financial pressure on airlines, forcing them to cancel flights, raise baggage fees, and increase ticket prices. This could price many travelers out of the market and have broader economic impacts if the trend continues. The administration's stance that the price hikes are temporary conflicts with the industry's more pessimistic outlook.

The details

United CEO Scott Kirby estimated that oil costs will rise to $175 per barrel and not return to $100 until late 2027. He said United will have to raise fares by up to 20% just to break even on the increased fuel expenses. Other major airlines like JetBlue, Delta, and American have also announced significant fare hikes. International carriers like Air France and Cathay Pacific have raised prices as well.

  • Jet fuel prices have nearly doubled since the beginning of Operation Epic Fury in February 2026.
  • On March 16, President Trump assured the price increases would be temporary.
  • On March 20, United CEO Scott Kirby estimated oil costs will rise to $175 per barrel and not return to $100 until late 2027.
  • On March 24, Kirby said United will have to raise fares up to 20% to cover increased fuel costs.
  • On April 1, Cathay Pacific raised its fuel surcharge by 34% on travel routes.

The players

Scott Kirby

CEO of United Airlines, who has warned of significant fare hikes due to rising fuel costs.

Donald Trump

The President, who has insisted the price increases are only temporary despite industry concerns.

Robert Isom

CEO of American Airlines, who said the company saw a $400 million impact on first quarter expenses due to higher fuel prices.

Chris Wright

Secretary of Energy, who said the U.S. is taking actions to help mitigate rising oil costs, including increasing production in California.

Pete Hegseth

Secretary of War, who said Trump will decide when the military objectives in Iran are complete and the war can end.

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What they’re saying

“If oil prices stayed where they are today, that's [$]11 billion of expenses for us. And that would require prices to be up 20% to break even to cover that cost.”

— Scott Kirby, CEO, United Airlines

“I can tell you that, when this is over, oil prices are going to go down very, very rapidly.”

— Donald Trump

“It will be the president's determination and the president's determination alone when those objectives are complete and when it serves the interest of the American people to cut that deal.”

— Pete Hegseth, Secretary of War

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This situation highlights the complex interplay between geopolitics, energy markets, and the airline industry, with the Trump administration's optimism clashing with the industry's more cautious outlook. Consumers may face significantly higher airfares in the near future unless a resolution to the Iran conflict can be reached.