U.S.-Iran conflict pushes oil prices higher, lifting airfares across U.S. carriers
The Wall Street Journal reported that the start of a conflict between the United States and Iran has driven up international oil prices, and that those higher energy costs are pushing up airfares in the United States.
Among the nine largest U.S. carriers, Spirit Airlines’ published lowest one-way domestic fare rose to $193, more than double the level a week earlier. The study noted similar price pressures across the industry.
Pre-sale prices for other major carriers, including United Airlines and Delta Air Lines, also climbed, with the lowest available domestic fares rising 15% to 57% over a week. The increases were especially pronounced on North American cross-continental routes, which saw the largest jumps.
A domestic traveler told the Journal that after booking a Hawaii flight for April, prices rose by about $400 in just two days, underscoring how quickly fares can move in a tight market when demand and fuel costs are elevated.
The escalation in airfares comes as the war raised concerns about oil shipments through the Strait of Hormuz, a critical chokepoint for global crude trade. The resulting jump in oil prices has fed into flight costs that airlines must manage.
U.S. airline shares also fell, with major carriers’ stock prices down roughly 10% to 20% since the conflict began last month, reflecting broader market volatility tied to energy and geopolitical risks.
Despite higher prices, domestic travel demand remains resilient in the near term, driven by a preference for domestic trips and the spring-break travel season. Spirit said most seats are expected to be sold out from the end of this month into early next month.
For U.S. readers, the trend matters beyond Korea because fuel costs influence airline profitability, consumer travel budgets, and inflation dynamics. Geopolitical tensions that disrupt energy supply chains can ripple through air travel pricing, tourism, and broader markets, including energy and transportation sectors.