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Airlines Raise Fees Amid Iran‑Driven Fuel Surge

New York Times Business •
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Delta Air Lines lifted its checked‑bag fee by $10 on U.S. domestic flights, following a similar move by United Airlines and JetBlue Airways. The hike comes as the war in Iran has pushed jet‑fuel prices higher, forcing carriers to pass costs onto passengers.

WestJet, Canada’s second‑largest carrier, announced a temporary fuel surcharge of up to CAD60 (about $43) on select routes, while Air Canada added a $50 surcharge for warm‑weather destinations and Porter Airlines began charging $40 on award flights. Fuel typically accounts for roughly 20 percent of airline operating costs.

Since the conflict began on Feb. 28, U.S. jet‑fuel costs have risen more than 87 percent to $4.69 a gallon, according to Argus Media. Kayak data shows average international round‑trip fares climbed from $774 on Feb. 23 to $998 on March 30, while domestic U.S. tickets edged up from $336 to $350 in the near term.

With fuel surcharges viewed as sticky, airlines are trimming lower‑demand routes and risk cutting lucrative long‑haul services if oil supplies tighten further. Passengers face higher out‑of‑pocket costs and a shrinking flight network, tightening the overall travel budget.