KUALA LUMPUR, November 15, 2026 — High airfares are here to stay, according to industry leaders, as airlines grapple with a drastically altered cost environment.
The New Normal for Air Travel
The bottom line: jet fuel costs have surged over 60% in the past year, driven by the conflict in Iran, and airlines are cutting money-losing flights to offset soaring expenses. By the numbers, US airfares jumped 25% this summer, with holiday tickets averaging $389 for Thanksgiving and $452 for Christmas.
The Jet Fuel Surge
Jet fuel prices have skyrocketed from $80 a barrel a year ago to around $180 currently, according to the Association of Asia Pacific Airlines (AAPA). Fuel accounts for a third of airline operating costs, and the four largest US airlines—United, Delta, American, and Southwest—spent $6.3 billion more on fuel in the third quarter, as reported by CNN.
Cutting the Bargain Flights
To offset these costs, major carriers have eliminated cheaper flights, including midweek, Saturday, early morning, and late-night flights. These cuts, popular with bargain hunters, are a direct response to the spike in fuel prices, which United CEO Scott Kirby expects to persist through 2027.
The Numbers Behind the Surge
US airfares rose about 25% this summer compared to 2025, per the Consumer Price Index. Thanksgiving travel averages $389 per ticket, up 39% from last year, while Christmas tickets are $452 on average, a 22% increase. Investors will note that airlines are prioritizing higher fares over filling seats, a strategy Delta CEO Ed Bastian calls “sustainable” even if fuel prices drop.
Global Impact and Traveler Strain
From North America to the Asia-Pacific region, airlines face a delicate balance: protecting finances without pricing out passengers. AAPA director-general Wong Hong warns that the industry operates in a “completely different cost environment,” where high prices are likely to prevail. The figure that matters: passenger traffic across Asia-Pacific grew just 1.9% in the first nine months of this year, reflecting the strain on travelers.
Sources
- Fare
- ‘It’s outrageous’: KIRO hosts say rising airfares are putting family visits out of reach – MyNorthwest.com
- Breeze Airways discounts base airfares for its annual Kindness Week
- Airfares are way up compared to last year. Don’t expect it to change this holiday season – WSVN 7News | Miami News, Weather, Sports | Fort Lauderdale
- High airfares may become new norm as jet fuel costs soar, says Asia-Pacific airline industry chief
- Chhath Puja Travel Rush: Delhi-Bihar Flight Tickets Skyrocket To Rs 20,000; Trade Body Urges Centre To Step In
Photo: Provided by United Airlines (CC BY 4.0)
