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Jet fuel prices have surged this year since the attacks on Iran that began two months ago led to the Strait of Hormuz effectively closing. For now, airline executives say travelers are still flying, increasingly covering the bill.
The price spike hit just ahead of spring break and is eating into airline profits this year. But the booking trends show resilient consumers are prioritizing travel, and executives have a bright outlook for the peak summer demand months, which now trail off in August. There are still questions about how demand will hold toward the end of the year since travelers don’t tend to book that far in advance.
In March, travel-agency ticket sales rose 12% from a year ago to $10.4 billion, with the number of domestic trips up 5% and international up 1%, according to the Airlines Reporting Corp.
Domestic economy ticket prices are up 21% from a year earlier to an average of $570, while premium-seat prices rose 17% to an average $1,444 per trip, ARC data released April 16 shows.
