Airlines looking for fare increases to stick, even when jet fuel costs fall | CNN Business

The soaring cost of jet fuel due to the war in Iran will lead to significantly higher airfares. But don’t expect ticket prices to drop once fuel prices start to decline. Higher fares are being driven by strong demand for travel as much as the cost of fuel. Despite higher ticket prices, travelers are booking tickets in record numbers at many airlines. So, as long as passengers keep flying, higher fares are likely to stay in place, no matter the cost of fuel. “The longer consumers pay these prices and airlines get used to this revenue stream, the more likely it is (to hold),” United CEO Scott Kirby said during its earnings call Wednesday. The airline’s passengers are now paying on average 20% more for every mile they fly compared to last year. When asked about keeping higher fares when fuel prices normalize, American Airlines CEO Robert Isom said customers have already been willing to pay more for things like extra legroom or seats closer to the front. “I’m bullish on what that means for our business,” Isom told analysts Thursday. He said that summer bookings have stayed strong even as the airline raised fares. “I think that what you’re seeing is recognition that tr