Jet fuel prices and airfares are rising. Travelers are still booking flights, US airlines say

Core Viewpoint - Major U.S. airlines are not anticipating a significant impact on quarterly profits despite rising jet fuel costs due to strong ticket sales and record bookings this year [1][3]. Group 1: Jet Fuel Costs - Jet fuel prices have surged since the onset of the war in the Middle East, with prices rising to $3.93 per gallon from $2.50 prior to the conflict, resulting in approximately $400 million in additional costs for Delta Airlines alone [2][3]. - The increase in jet fuel prices is attributed to strained global oil supplies, particularly around the Strait of Hormuz, affecting one-fifth of the world's oil supply [2]. Group 2: Airline Performance - Delta Airlines reported that eight of its top ten days for ticket sales occurred this year, with five of those days since the war began, indicating strong demand across all market segments [4]. - United Airlines experienced its top ten weeks for ticket sales in the first ten weeks of the year, with the last two weeks being the strongest on record [4]. - American Airlines also noted that eight of its best ten days and weeks for bookings happened this year, with expectations of continued high demand through April and May [5]. Group 3: Future Pricing Trends - Industry analysts predict that airfares will inevitably rise due to higher fuel costs, particularly affecting long-haul international routes that consume more fuel [6]. - Non-U.S. carriers have already implemented fuel surcharges or increased ticket prices, while U.S. airlines are more likely to incorporate these costs into base fares or adjust fees for additional services [7].