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US airfares are at their highest in years as the Iran war shocks oil and energy prices

Data released by the Bureau of Transportation Statistics on Wednesday shows in Q1 of 2026, airfare costs rose 4.7% from Q4 2025, and 7.7% from Q1 of 2025.
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U.S. domestic airfares climbed to an average of $428 in the last quarter, thanks in large part to fuel price disruptions caused by the war in Iran.

Data released by the Bureau of Transportation Statistics on Wednesday shows in Q1 of 2026, airfare costs rose 4.7% from Q4 2025, and 7.7% from Q1 of 2025.

When adjusted for inflation, fares are currently at their highest since the 4th quarter of 2022, when they reached a $433 equivalent.

RELATED STORY | Summer airfare prices spike 30% as jet fuel costs soar after Iran war

Jet fuel prices have more than doubled since the beginning of the war with Iran, and airlines are now passing those costs on to passengers at the ticket counter and baggage claim.

Analysts warn that even if the situation in the Middle East ends quickly, it could be months or longer before ticket prices and fees come down for passengers.

Overall, recent government data shows prices climbed 4.2% in the 12 months ending in May. The price of goods and services within the month of May jumped 0.5%, driven largely by oil and energy prices that have been affected by the Iran conflict.