Airlines Expect Fare Increases Because of Rising Fuel Costs, Over-Capacity

Airline customers and travel sellers should brace for a series of airfare increases, as the industry prepares to absorb a hefty hike in the cost of jet fuel.

That is the message that came from several major airlines in the past week, as many carriers said they intend to pass along higher energy costs by raising ticket prices, imposing fuel surcharges, or both. In a series of alerts lowering their profit forecasts, airlines pointed out that the cost of gassing up their fleets has shot up 50 percent since last summer, with oil prices rising from $45 to more than $65 per barrel since mid-2017.

As the trend continues, airlines said they would tighten up capacity and might even exit some less profitable routes.
Travelmarket Report 6/12/2018