Why are air fares expected to rise significantly in 2026, according to the news?

Air fares are expected to rise significantly in 2026 because airlines face an extra $100bn jet fuel bill this year, driven by a 70% increase in jet fuel prices following the war with Iran and the closure of the Strait of Hormuz in March, which choked off oil supplies; as IATA’s director general Willie Walsh stated, 'High oil prices will inevitably mean higher ticket prices. There’s just no way to avoid that.'

Which types of passengers and flights are most likely to bear the brunt of fare increases, and why?

Long-haul and business passengers are most likely to bear the brunt of fare increases because carriers like British Airways—with significant long-haul, corporate, and premium operations—are expected to pass through higher fuel costs more directly, whereas price-sensitive short-haul leisure flights will be the last to see increases, as noted by BA CEO Sean Doyle who explained that 'a brand like BA... would expect maybe to have more pass-through of prices than maybe a carrier who’s solely competing for leisure short haul.'

Air Fare Rises 'Inevitable' as Airlines Face Extra $100bn Jet Fuel Bill This Year

Jun 8, 2026

Airlines face a $100 billion increase in jet fuel costs due to Middle East tensions, prompting IATA to warn that ticket prices must rise and global profits could halve to $23 billion in 2026.

theguardian

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