American travelers bracing for holiday travel this season face a harsh reality: airfares across major US carriers have surged roughly 22% year-over-year, and airlines show little inclination to reverse course. A Reuters analysis published October 24, 2026 reveals that carriers including Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, and Alaska Air Group are deliberately choosing to fly with some empty seats rather than discount fares — a dramatic strategic pivot driven by soaring jet fuel costs.
The root cause is a near-doubling of jet fuel prices since February 2026, when the US-Israeli conflict with Iran began. Gulf Coast spot jet fuel prices climbed from $2.43 per gallon before the conflict to $4.63 per gallon by October 20 — a rise of approximately 91%. The four largest US carriers collectively spent $6.3 billion more on fuel in Q3 alone compared to a year earlier, equivalent to $69 million extra per day.
Despite record passenger revenues — up 18% industry-wide in Q3 with traffic growing less than 1% — profit forecasts have still been cut. Delta and Southwest have both trimmed their annual earnings outlooks, while American Airlines now expects a full-year loss. JetBlue separately initiated a fresh $10 one-way fare increase on domestic routes this week, following a United-led hike the previous week that Southwest also matched. Airlines and analysts warn travelers to expect no relief through the 2027 holiday season.
Source: West Hawaii Today / Reuters — US Airlines Favor Higher Fares Over Fuller Planes