October 25, 2026
American Airlines ruled out a decline in airline ticket prices in the foreseeable future, even if fuel costs decrease, noting that the financial repercussions of the war on Iran are putting pressure on the company to record annual losses.
Devon May, CFO of American Airlines, explained in statements to the Financial Times that ticket prices will likely remain at their current levels if fuel prices decrease, while they will inevitably rise to compensate for any new increase in costs. It is noteworthy that aviation fuel prices have more than doubled since the outbreak of the war on Iran late last February.
Data from the US Bureau of Transportation Statistics showed that the average price of a basic ticket (excluding additional fees) rose from $405 in late 2025 to $428 in the first quarter of this year, then to $436 in the second quarter. In this context, Brett House, an economist at Columbia Business School, pointed out that the crisis is not limited to the rise in fuel prices only, but rather is related to their sharp fluctuations that confuse expenditure plans, given that tickets are sold months before the flight date. Mike Leskinen, chief financial officer of United Airlines, confirmed this trend during an investor conference last month, saying that price stability remains the top priority, regardless of its level.
May pointed out that ticket prices have not recovered fully in real terms since the “Covid-19” pandemic, explaining that this rise would have been scheduled for 2024 had it not been for the presence of a surplus in supply, making the current year the first in which the conditions are available for revenues to return to levels recorded seven years ago.
In terms of financial performance, American Airlines’ revenues increased by 19% in the third quarter on an annual basis, supported by the demand for premium seats and the recovery in business travel. However, the jump in fuel prices added $1.9 billion to expenses, prompting the company to lower its profit forecasts and warn of a potential loss of between $1 and $1.60 per share.
In the same context, Delta Airlines lowered its profit expectations despite a 16% growth in its quarterly revenues, while United Airlines incurred a loss of $1.8 billion due to fuel, of which it succeeded in recovering 72% by increasing ticket prices.
Despite the wave of high prices, airline companies confirm the steadfastness of consumer demand. Delta reported raising ticket prices by about 20% without recording a significant decline in sales volume, benefiting from the increasing demand for premium seats, upgrade services, and airport lounges.
In the same context, data from the travel reservations company Hopper revealed that holiday ticket prices reached their highest levels in an entire decade. The average price of a domestic round-trip flight on Thanksgiving reached $402 (an increase of 31% over last year), while it reached $452 on Christmas (an increase of 23%). As for the hospitality sector, the average hotel price per night at Christmas increased by 18% to reach $197, while hotel prices stabilized during the Thanksgiving holiday at $170.
