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2h ago

Airlines Tighten Schedules and Add Fees as Jet Fuel Soars

Analysts cut outlooks, signaling pricier, thinner summer travel.

Demand for air travel remains strong even as air fares have started rising amid soaring jet fuel prices.
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"We are Wile E. Coyote running off the cliff into midair," Ben Cahill, director for Energy Markets and Policy at the University of Texas at Austin's Center for Energy and Environmental Systems Analysis, said.
There are plenty of good-value European beach holidays left for summer (Photo: Getty)

Overview

  • Airline shares fell Thursday after fresh war comments suggested a longer conflict, and TD Cowen lowered sector price targets on expectations of sustained high fuel costs and cooling demand.
  • Jet fuel has roughly doubled in recent weeks to multi‑year highs, outpacing crude oil, according to IATA and S&P Global data, which makes each flight far more expensive to operate.
  • United disclosed it will trim about 5% of capacity over the next six months and carriers are leaning on fees to recoup costs, with JetBlue raising most bag charges by $10 as fuel bills surge.
  • Ryanair warned it may cancel 5% to 10% of flights in May through July if pressures persist, while Chinese airlines are shaving weight, taxiing on one engine, and routing more flights over Russia to cut fuel burn.
  • Surveys show fewer Americans plan trips as prices rise, transatlantic tickets are about $200 higher than a month ago, and even private flyers face 5% to 20% fuel surcharges, pointing to broader travel strain as fuel typically makes up 20% to 30% of airline costs.