With the ongoing war in the Middle East, airlines across the U.S. are feeling a pinch, and so are air travelers.
"We've already seen prices rise quite a bit, and we'll probably keep seeing prices rise in the next weeks and months, depending on what happens in the Strait of Hormuz," UC Merced associate professor of economics, Greg Wright, stated.
That body of water helps ship nearly 20% of the world's oil.
Before the war began, U.S. jet fuel prices sat at $2.50 per gallon, but this week they're at $4.02 a gallon, according to data from Argus U.S. Jet Fuel Index.
"Jet fuel is a big portion of airline costs. It's approximately a quarter to a third of those costs, so when jet fuel prices rise, it's inevitable that it gets passed on to consumers," Wright explained.
The United Airlines CEO agrees.
"If it stays at today's level, it's an $11 billion increase in expense. So what do we do about that? One thing is that fares are going up. Fares need to go up about 20% to fully cover that," United Airlines CEO Scott Kirby said.
