The world’s major airlines are preparing passengers for another round of fare increases. The war that began in Iran in March pushed up aviation fuel prices, and Delta Air Lines says average ticket prices had already risen 20% by October.
Airlines warn that ticket prices will keep rising as fuel costs climb, with industry leaders including TAP Air Portugal chief executive Luis Rodrigues among those sounding the alarm. Rodrigues said the next three to five years would be tough for the whole sector, noting that even with strong passenger demand, airlines have little room to push fares much higher.
Delta Air Lines said that despite the jump in fares, it has not seen a significant drop in passenger numbers. Still, carriers expect prices to keep rising, as fuel supply contracts signed earlier to hedge against price swings expire and are replaced by new deals struck at higher rates.
Italy’s ITA Airways had locked in roughly 80% of its fuel needs before the crisis began but has not signed a new contract since. Chief executive Joerg Eberhart said that leaves the airline far more exposed to any swings in fuel prices next year, which will likely force it to raise fares.
Bookings rise, but concerns persist
According to a report by aviation analytics firm OAG, 2.3 billion passenger seats have been booked worldwide for the first half of 2026, up 1% from the same period last year. Even so, airline executives worry that rising inflation and living costs could curb people’s ability to travel in the future.
Roberto Alvo, chief executive of South American carrier LATAM Airlines, said the industry’s real problem is not a shortage of passengers but rising costs. He warned that if higher energy prices inflict broader damage on the economy, demand for air travel could weaken as well.
Rising fuel costs are also shaping airlines’ capital spending plans, with some forced to choose between ordering new aircraft and investing in artificial intelligence. Markus Schnabel, a representative of SunExpress, jointly owned by Lufthansa and Turkish Airlines, said AI adoption also requires significant additional funding.
