United Airlines CEO Has Bad News About Airfare Prices
The next flight you book might cost more. That's the warning United Airlines CEO Scott Kirby issued Thursday, while adding that the price hike might be sooner than you think.
What's Causing the Possible Increase?
While speaking about the future of air travel at Harvard's John A. Paulson School of Engineering on Thursday, Kirby said the U.S.-Israel war against Iran has seen the price of jet fuel skyrocket since the war escalated last weekend.
As reported by CNBC, the price of jet fuel has shot up 58 percent since last Friday. The outlet reports that the trend could lead to higher airfares.
"If it continues, we'll feel it in Q2 also," Kirby said, per CNBC.
Related: Trump's Iran War Is Already Pushing Gas Prices Higher
That airlines are now seeing price hikes in jet fuel comes as no surprise. Earlier this week, oil prices saw a sharp increase (nearly 9 percent) to $72.79 a barrel on Monday morning, from approximately $67 just three days prior.
The increase forced gas stations to raise prices by 5 to 10 cents per gallon of gasoline.
High Prices Not Dissuading Travelers
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Kirby says that price increases to airfare will "probably start quick."
That being said, he sees no slowdown despite economic headwinds. Kirby said at the event, per CNBC, that travel demand has been resilient overall, with booked revenue up 20 percent from a year ago.
He added that demand "has not taken even a tiny step back."
United Airlines, and others, too, will likely make news in the coming weeks when industry leaders convene for the JPMorgan industry conference. There, executives will offer an update on their financial outlooks.