Airline industry leader predicts ticket prices will level off despite high fuel costs
Airlines for America CEO Chris Sununu said plane ticket prices will stabilize despite jet fuel prices that have spiked since the Iran war began. He noted that demand remains strong and airlines are absorbing costs rather than passing them fully to consumers. Fuel costs have nearly doubled, but Sununu expects prices to remain steady.
Sununu's projection comes as the industry absorbs historically steep input costs. Bureau of Transportation Statistics data shows airlines consumed 1.627 billion gallons in May while paying an average of $4.09 per gallon, nearly double the year-earlier figure. United and American each estimate roughly $6 billion in added fuel expenses versus last year, a 50 percent jump from 2025 levels.
The supply disruption traces to the U.S. naval blockade at the Strait of Hormuz, through which about one-fifth of global oil exports normally pass. Iran has kept the strait closed while pursuing alternative export routes through Oman. The strain has already proven fatal for Spirit Airlines, which ceased operations in May after the Trump administration declined a bailout.
Stabilized fares could provide modest relief to travelers already facing sharply higher costs, but the underlying fragility remains. If fuel prices climb further or the Hormuz disruption persists, airlines may exhaust their capacity to absorb expenses, forcing sharper fare increases or route cuts. Budget carriers are especially vulnerable, potentially reducing competition and limiting affordable options for price-sensitive passengers. Business travel demand and consumer confidence could shift if fares eventually rise, with ripple effects across tourism, hospitality, and regional economies that depend on air connectivity.