Get ready for higher holiday airfares as airlines cut flights over high fuel costs
Major airlines like United, Southwest, and American are cutting flights over high fuel costs, which could impact holiday fares.
Airlines are reducing holiday flights and potentially raising prices due to soaring fuel costs. Executives stated there may be additional cuts and fare increases if high oil prices persist. The price of oil surpassed $100 per barrel this month; jet fuel presently costs $4.53 per gallon. Airfares rose over 23% in August compared to the previous year.
Major airline executives confirmed strong demand, but also noted plans to cut some low-profit routes and potentially hike fares to counteract the fuel price surge. Southwest Airlines and American Airlines CFOs echoed these sentiments, adding that the time lag in passing on higher jet fuel costs means passengers may see increases later.
Travel analysts advise booking early to secure affordable fares, especially for winter travel, and to consider refundable tickets.
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