Will Airline Ticket Prices Rise Along With Fuel Costs?

Will Airline Ticket Prices Rise Along With Fuel Costs?

An American Airlines aircraft sits at the gate in Barbados, on February 1, 2022. (Photo by Daniel ... [+] Slim) The number one threat to the airline's industry recovery appears to have switched from Covid worries to rising oil prices, stimulated by Russia's invasion of Ukraine. Experts said air fares are likely to rise, but perhaps with some restraint by the carriers. Oil prices briefly topped $100 a barrel on Thursday, the first time they had hit the $100 mark since 2014, before falling back slightly. It has been a steep climb from 2020 prices, which averaged about $39 a barrel. So far, the pace of travel has not slowed, according to the Transportation Security Administration's tracking of checkpoint clearances, and the pace of fare increases has not soared, at least through last week. On Thursday, TSA reported that 1. 98 million people cleared security. During five days of Presidents Day travel, four included more than 2 million clearances, including 2. 24 million on Friday Feb. 18. That was the heaviest day since Nov. 28, 2021, the Sunday after Thanksgiving. Meanwhile, Cowen COWN analyst Helane Becker wrote in a report issued Monday that as of Feb. 14, published fares were