In addition to raising fares, airlines in the United States and elsewhere cut flights that were less profitable or popular. Higher fuel costs also deepened a divide between large, successful U.S. companies like Delta Air Lines and United and struggling budget carriers. Spirit Airlines, which had already lost billions of dollars in recent years, shut down last month partly because of the added burden of more expensive fuel.
Because travel demand remains high, airlines may not even consider cutting fares until the fall or winter, when demand weakens, analysts said. And if customers start buying fewer tickets, carriers may run fewer flights rather than reduce prices.
That’s not to say travelers won’t be able to find deals. Airlines in the United States and Europe may cut prices on some popular routes to attract customers, while others may lower fares to make up for lost demand.
Airlines in the Middle East have been hammered by the war and are expected to lose a collective $4.3 billion this year, according to the International Air Transport Association. Before the war, the association expected those airlines to earn $6.8 billion. To sell more tickets, those airlines may have to reduce fares.
And while many carriers in the United States, Europe and elsewhere will resist lowering fares, they could be forced to do so to remain competitive, said Saj Ahmad, chief analyst at StrategicAero Research, a consulting firm. “All it takes is one airline to drop fares, and others will follow suit,” he said.