Major Airlines Raise Fees and Fares Amid Surging Jet Fuel Costs from Iran War

Multiple airlines across the United States and Canada have implemented higher baggage fees, fuel surcharges, and ticket prices in response to elevated jet fuel costs resulting from the war in Iran. Southwest Airlines is increasing fees by $10, marking a change less than a year after it discontinued its longstanding 'bags fly free' policy.

Delta Air Lines, along with Southwest, WestJet, and others, reported strong ticket demand despite the rising costs.

American Airlines and Canadian carriers are also adding new fees described as 'sticky,' meaning they are intended to persist. The surge in jet fuel prices stems directly from the ongoing conflict in Iran, affecting the airline industry broadly. BBC News reported that airlines are reducing flight services in addition to raising fares to offset these expenses.

No sources indicated the exact start date of the war, but its effects on fuel markets are consistent across reports. Delta expects to maintain strong profits this period, even with the higher fuel costs. The New York Times noted that demand for tickets has remained very strong amid the war's impact.

This contrasts with service reductions mentioned by BBC, highlighting varied strategies among carriers.

fee hike applies to checked bags and other services, building on its policy shift in early 2023.

WestJet, a Canadian airline, is among those introducing fuel surcharges. American Airlines is similarly adjusting fees, though specific amounts were not detailed in all reports. com attributed Southwest's changes specifically to soaring jet fuel costs rippling from the Iran war.

No contradictions emerged on the fuel price driver, though the scale of reductions in flights varied by source.