Iran War Fuels Oil Surge, Raising US Summer Airfares

Rising oil prices fueled by the ongoing war in Iran are set to drive up summer airfares across the United States and beyond, with some airlines facing potential bankruptcy as jet fuel costs soar, industry leaders warned this week.

The conflict, which escalated late last month with U.S. and Israeli airstrikes on Iranian targets, has pushed global oil prices to around $100 per barrel, more than doubling jet fuel expenses in recent weeks. United Airlines Chief Executive Scott Kirby highlighted the severity in a memo to employees and interviews with media outlets, stating that sustained high prices could add $11 billion in annual costs for his carrier alone. "If these other guys make the same mistakes they made six years ago during the COVID-19 pandemic, and if the forecast about $175 per barrel is right, you'll see airlines not survive," Kirby said.

To offset the surge, airlines are passing costs to consumers, with Kirby estimating a 20 percent increase in ticket prices. He urged travelers to book flights soon to lock in lower rates before adjustments take effect. Jet fuel prices vary regionally, hitting hardest on the West Coast, which Kirby described as a "fuel island" isolated...