Is Today the Cheapest? "Should I Buy Vacation Tickets in Advance?" Airfares Rise Overnight

As international oil prices have surged due to the war between the United States and Iran, airline ticket prices are also soaring.

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On the 12th (local time), foreign media including The Wall Street Journal (WSJ) reported that the prices of domestic airline tickets for major US carriers have skyrocketed over the past week. They explained that the rise in oil prices has increased fuel cost burdens for airlines, which in turn has led to higher airfares.

On this day, among major US airlines, the lowest listed one-way domestic fare for Spirit Airlines jumped to $193 (approximately 289,000 won), more than double the previous week. Ticket prices for domestic flights on other major airlines, including United Airlines and Delta Air Lines, also rose by 15% to 57% in just one week. The routes with the largest increases were transcontinental flights crossing North America.

United Airlines aircraft are stopped on the runway. Photo by AP News Agency

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The increase in airline ticket prices is attributed to the recent war between the United States and Iran, which has effectively paralyzed navigation in the Strait of Hormuz-a key hub for oil trade-causing a spike in international oil prices. On this day, Brent crude oil, the international benchmark, surged 9.2% from the previous trading day to $100.46 per barrel. As a result, the share prices of major US airlines fell by 10% to 20% from the start of the war to the close of trading on this day. Investment company TD Cowen lowered its earnings targets for major airlines and predicted that airlines may revise their own earnings guidance by next week.

Experts explained that airlines that have invested in fuel-efficient aircraft may experience some price cushioning, but those operating relatively older aircraft will take a bigger hit.

However, some analysts believe that demand for domestic flights in the US will not drop significantly. This is because it is the peak season for spring break in the United States, and many travelers are opting for domestic trips instead of international travel, which has become relatively more expensive.

Spirit Airlines told WSJ, "We expect most seats on flights from the end of this month to early next month to be sold out." Scott Kirby, CEO of United Airlines, said, "Unlike in the past, people these days do not react strongly to incidents like the Iran situation." He added, "When oil prices rise sharply, airfares also go up, but when fuel prices fall, airfares will naturally come down again."

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