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NEW YORK — Airlines are raising fares and warning of continued price increases as surging fuel costs and widespread airport disruptions test travel demand, industry executives and travelers said, March 28, 2026. Carriers say higher operating expenses and staffing shortages are forcing them to pass costs to consumers even as demand for flights remains resilient.
Airlines, including Cathay Pacific, SAS, and Finnair, have already increased ticket prices, while U.S. carriers signal additional hikes ahead. United Airlines CEO Scott Kirby said fares could rise as much as 20% this year as jet fuel prices climb sharply.
Jet fuel at major U.S. airports has reached about $3.98 per gallon, up nearly 60% since late February following geopolitical tensions tied to U.S.-Israel strikes on Iran. Airlines have responded by raising fares and adding fuel surcharges. Average transatlantic ticket prices have jumped to $1,059, a 26.5% increase week over week.
Despite the increases, airline executives say demand remains strong, particularly for international routes and premium leisure travel. Still, travelers are becoming more selective.
“I like to travel a lot … but I have my limits,” said Genevieve Price, who said she caps flights to Rome at $900.
Others are delaying bookings or considering alternatives. “We haven’t booked our flights, but we should,” Mary Jean Erschen-Cooke told CNBC.
Airport disruptions are compounding frustrations. Long security lines at U.S. airports have been linked to staffing shortages during a federal funding lapse affecting the Department of Homeland Security. More than 500 Transportation Security Administration officers have reportedly quit, while over 50,000 workers experienced delayed pay.
Travelers in major hubs such as Houston, New York and Atlanta reported wait times exceeding three hours, in some cases longer than flight durations.
“If the security line was three to four hours long, I feel like I could just drive,” said Elizabeth Leddy.
Former President Donald Trump said he plans to sign an order to ensure TSA employees receive pay, with paychecks expected to resume as early as Monday. U.S. Immigration and Customs Enforcement officers have also been deployed to assist at airports, though their exact role remains unclear.
Airlines say they are preparing to adjust capacity if demand weakens. American Airlines CEO Robert Isom said carriers will remain “nimble” in managing supply. United Airlines has already cut about 3% of capacity during off-peak periods.
Industry leaders expect fuel prices to remain elevated into next year, keeping pressure on fares and operations.
The outlook underscores a fragile balance: demand for travel remains strong, but rising costs and operational disruptions are testing how much passengers are willing to pay and tolerate before pulling back.