Minnesota Travelers are being advised to book their flights early as airlines navigate rising fuel costs amid the war in Iran.
Thrifty Travelers Kyle Potter says while domestic fares have only seen a modest 2.2% annual increase, the sudden spike in fuel expenses is putting some pressure on airlines.
“Airlines have a lot of latitude to decide how much they are going to charge. “ says Potter, “At the same time they are very sensitive to the perception that they are price gouging. So they’re going to have to find some way to thread the needle with that.”
Potter says the impact on local ticket prices will likely be determined by how quickly the conflict could resolve ahead of the spring break travel rush.
“ The concern is that the longer this drags on, the bigger impact it's going to have on flights across the board, and everybody has a breaking point” says Potter, “ Airlines need people to fill those seats and you know you can only ask people for so much.”
He says for now, Minnesota's airport checkpoints have not yet seen the significant delays reported at other major hubs during the ongoing partial government shutdown, even as TSA agents work without pay.
He added that now airlines are weighing the decision to pass on the spike in jet fuel costs to passengers, against the need to stay competitive during peak spring break season.
The conflict has seen U.S. and Israeli airstrikes target Iranian oil infrastructure, causing global crude prices to surge past $100 a barrel and triggering a 15% spike in jet fuel costs within a single week.
For MSP’s primary carriers, such as Delta and Sun Country, these unhedged fuel expenses are driving immediate airfare hikes and emergency surcharges to offset multi-million dollar operating deficits.
