Airlines around the world are responding to a sharp rise in oil prices sparked by the war in Iran, with several carriers suggesting that they may need to pass along at least some of the increased costs to their passengers.
While there’s no indication yet of a massive shift in airline ticket prices, in certain markets airfares are already going up. Some foreign airlines—especially those with a lot of ultra-long-haul flights—just announced they’re imposing fuel-related surcharges, according to Joe Brancatelli, who runs the JoeSentMe.com business travel site.
Air New Zealand, for example, has increased fares by more than $50 on some international routes; other airlines like Air India and Qantas have followed suit, with the Australian flag carrier raising fares by about 5 percent on its longest flights.
Among European air carriers, the Air France-KLM group said it is raising fares on long-distance routes, with increases of 50 euros ($58), starting this week. SAS Scandinavian Airlines, Finnair, and budget line Norse Atlantic also said they will adjust ticket prices to reflect higher fuel costs if the conflict continues.
So far, however, no U.S. airlines have announced any fare hikes, although United Airlines CEO Scott Kirby said last week that prices would “probably” rise in line with jet fuel costs.
The price of jet fuel, which typically accounts for 20 percent or more of an airline’s total operating expenditures, has jumped by more than 52 percent in two weeks to around $90 a barrel. That is largely due to the effective closure of the Strait of Hormuz, the Persian Gulf waterway that handles a fifth of the world’s oil shipments. The war is also forcing airlines to reroute flights over a vast region of the Middle East, which is adding to flying times and consuming more fuel.
If you were on the fence with booking a flight, especially an international one, best to do so now.
Given the increasing uncertainty and instability in the world, travelers might want to book sooner than later and avoid tight restrictions by purchasing a fare with more flexibility, even if you have to pay extra for it—it will be money well spent as it could save you down the road.
“If you were on the fence with booking a flight, especially an international one, best to do so now,” said Jimmy Yoon, travel expert and loyalty specialist at Point.me. In other words, the longer the conflict drags on, the more likely it is fares will rise, and if you need to change an existing booking, you’ll probably be better off than starting fresh.
Even before the start of the Iran war on February 28, the prospect of rising airfares was already a concern. A recent Bureau of Labor Statistics report revealed that the average cost of airline tickets in the United States in January was up 2.2 percent when compared with the same period in 2025, marking the biggest increase of any travel segment, with other costs like hotel accommodations and gas prices actually decreasing.
So, how is all of this affecting travel costs and bookings?
Travel industry sources say that thus far, there’s no evidence that travel costs are spiking across the board, and bookings are still solid.“People are still traveling, and I’m getting calls every day from clients who are interested in booking a trip this year,” said Diana Hechler, president of D. Tours Travel in Larchmont, New York.
And meanwhile, some trends that had already been underway prior to the war may still hold. In some markets, such as Europe, demand had already softened prior to February 28, so airfares might not climb as high as they would otherwise.
Airline analytics company Cirium found that bookings for July 2026 travel across all fare classes from Europe to the United States have dropped 14 percent year-over-year, while bookings from the U.S. to Europe have fallen 7 percent year-over-year. That drop could lead to transatlantic price reductions if airlines feel the need to start filling seats at lower fares.
Demand varies by class of service, experts say. Premium economy seats, for example, are increasingly popular and will likely cost more on transatlantic routes, American Express Global Travel reported.
Katy Nastro, a travel expert at flight deals site Going, also noted that domestic fares could be roiled by upheaval in the budget airline sector—which would be exacerbated by a sharp rise in oil prices. “While some ultra-low-cost carriers have announced new routes, the once leaders in this category are struggling to stay afloat.”
She pointed out that Spirit Airlines, now in bankruptcy proceedings, has reduced its flying by roughly 25 percent and is “nixing quite a lot of routes out West.” And Frontier is scaling back on flights out of some key markets like New York. “A market without a healthy amount of competition from budget carriers runs the risk of higher fares for consumers,” she added.
The bottom line is that there is a lot of both geopolitical and economic uncertainty this year. While this means some travelers may opt to stay closer to home and maybe take a road trip rather than fly, for those looking for a good airfare deal, flexibility and quick decision-making may be in your favor.
This story was originally published on February 20, 2026, and was updated on March 13, 2026, to include current information.
