Why airfares could rise even more, but airline profits won't

Live updates

1. 1h ago

   Airfares may rise more, but airline profits won't

   Airfares are surging, with prices for Thanksgiving and Christmas sharply higher, yet carriers are still trimming profit hopes. Jet fuel price volatility and capacity rationalization threaten bottom-line results. Travelers could be stuck paying high airfares even if oil and jet fuel prices fall. Airlines are trimming capacity as jet fuel prices keep climbing and travelers keep booking.

   Why it matters

   The airline industry is experiencing a squeeze on profits due to rising fuel costs and capacity adjustments. Despite record-high ticket prices boosting revenue, persistent fuel costs threaten bottom-line results. This situation has significant implications for travelers and the industry's financial health.

   What is confirmed

   • Airfares have surged 23% year-over-year.
   • Jet fuel price volatility is squeezing airline profits.
   • Airlines are trimming capacity as jet fuel prices keep climbing.
   • Travelers could be stuck paying high airfares even if oil and jet fuel prices fall.

   Still unconfirmed

   • The odd part is what happens if fuel stays expensive and seats get scarcer.

   What to watch next

   • Earnings season reports from major airlines
   • Changes in jet fuel prices
   • Airline capacity adjustments
   Sources used for this update (17)

   1. www.cnbc.com — Life and Leisure - CNBC
   2. www.cnbc.com — Airlines - CNBC
   3. www.gulf-times.com — tag - Gulf Times
   4. CNBC — Why airfare could rise even more, but airline profits won't
   5. The Points Guy — High prices are weighing on holiday travelers, new TPG-YouGov survey finds
   6. Time Magazine — Flying Doesn’t Have to Be This Miserable
   7. The Franklin News Post — FILE PHOTO: Student assembly at Cornell University campus in Ithaca, New York
   8. Yahoo Creators — Flying Home Sunday After Thanksgiving Could Cost a Family About $1,000 More
   9. CNBC — These are the cheapest and most expensive U.S. flights this November
   10. Travel + Leisure — When to Book Holiday Flights for 2026—and the Cheapest Days to Travel, According to Airfare Experts
   11. CBS News — When to book Thanksgiving and Christmas flights for the best deals, according to Google
   12. PCMag — Here’s What 5 Years of Google Flights Data Says About When to Book Your Holiday Travel
   confidence 85%