Travel Woes: Why Cheaper Fuel Won’t Immediately Mean Cheaper Flights

India-West News Desk

WASHINGTON, DC- A drop in jet fuel prices may not translate into cheaper airline tickets anytime soon, as carriers continue to deal with higher operating costs and the effects of earlier fuel-price increases.

The average U.S. airfare, excluding optional charges such as checked bags and seat selection, rose to $436 in the April-June period, up from $405 in the final three months of 2025, according to the Bureau of Transportation Statistics.

That increase came even as jet fuel prices moved sharply in the opposite direction for part of the year. The Argus U.S. Jet Fuel Index fell from $4.88 a gallon in early April to $2.70 in June before climbing again. By September 17, it had reached $4.53 a gallon.

The uneven movement reflects the way airlines plan their operations. Carriers set schedules and seat capacity months ahead, based partly on expected fuel costs, while tickets are often sold well before departure. When fuel prices change suddenly, airlines cannot adjust fares on tickets already sold, the Associated Press reported after speaking to industry executives.

Even if fuel prices retreat, airlines may take time to lower fares as they recover costs already incurred. Experts said fuel prices would need to fall and remain lower before airfares could decline on a sustained basis.

At American Airlines, every one-cent-per-gallon increase adds about $10 million to the airline’s quarterly fuel bill, AP reported.

The latest increase has been driven by disruptions to refinery production and fuel exports from the Middle East, along with damage to Russian refineries from Ukrainian strikes. Jet fuel and diesel compete for refinery capacity, so shortages of one can affect the supply and price of the other.

U.S. travelers are already facing higher prices. Airfares in August were 23% above the level a year earlier, according to the Labor Department.

Last-minute travelers are also paying more. A Deutsche Bank analysis found that the average same-day fare for a one-way domestic Allegiant Air flight rose 21% in one week to $280 on September 18. The comparable American Airlines fare reached $463, up 6%.