US Airline Group Says Fares Should Stabilize as Fuel Costs Surge

Chris Sununu, chief executive of Airlines for America, said on Sunday that airfares are likely to stabilize even as jet fuel prices have surged over the past six months since the outbreak of war in Iran. According to Sina Finance, he said travel demand remains strong, fares are unlikely to rise sharply, and Asia and Europe will be hit harder. Kayak data showed average jet fuel prices at $3.82 per gallon, down from a May peak of $4 per gallon. U.S. domestic and international airfares both peaked in May, with domestic tickets nearly $100 more expensive than a year earlier and international fares up more than $200 year over year. Sununu said U.S. domestic fares are currently up 20% from a year earlier and “will not keep rising.” He also said airlines are absorbing part of the higher fuel costs themselves, even as jet fuel prices have doubled in some areas. United Airlines and American Airlines both estimated this year’s fuel costs will rise by about $6 billion from last year, with increases of 50% compared with 2025. The U.S. Bureau of Transportation Statistics said in July that higher fuel costs, rather than travel demand, were the main driver of fare increases. In May, U.S. airlines consumed 1.627 billion gallons of jet fuel and paid an average of $4.09 per gallon, nearly double the price in May 2025. Fuel is one of the airline industry’s largest operating expenses, and high oil prices have forced carriers to raise fares and cut flights. Spirit Airlines filed for bankruptcy in May after failing to secure aid from the Trump administration. The United States continues to enforce a maritime blockade of the Strait of Hormuz, through which about one-fifth of global oil exports pass. Iran is keeping the strait closed and is seeking agreements with Oman and other regional countries to open alternative oil export routes.