Aeroplane tickets have been increasing, and it has not gone unnoticed by Jamaicans.

A round-trip economy ticket from Jamaica to  Miami is now as high as US$900.

The increase in airfares may impact tourism arrivals despite advance bookings. Add to that, demand for the destination would have fallen due to Hurricane Melissa forcing many hotels to remain shuttered as they undergo refurbishments. American Airlines is already having to suspend flights to a number of destinations.

Airfares across the globe are up 35 per cent compared to last year primarily as a result of escalating oil prices due to the conflict between the United States and Iran. The war was supposed to be over in four weeks but has dragged on for six months, with Iran determining which ships can pass through the Strait of Hormuz. 

According to S&P Global Energy Platts data, jet fuel prices are up 50 per cent since February of this year. Jet fuel is trading at US$160 a barrel, up from $90 at the start of the year. 

While airfares continue to go up, demand is high. People are still flying, still finding money to book airline tickets.

“Despite high fuel and high prices, we’re seeing really strong demand,” said CEO of Southwest Airlines Bob Jordan. 

“We observed minimal to no negative impact on demand from higher price points, a trend we see continuing,” added United’s Chief Commercial Officer Andrew Nocella.

It is best to book now rather than hope that fares will fall later this year. Thanksgiving flights are already up 10 per cent, with Christmas up 15 per cent.  

The airlines say it is not just jet fuel that is leading to a hike in airfares. “Labour costs have escalated, and maintenance continues to go up. These are all costs that every single airline pays the same,” said United’s CEO Scott Kirby. 

This means commercial airline operators have to pass on these costs to customers with high fares.  United Airlines has made it known that it expects to pay about US$6 billion more for fuel than last year.

Cornell University professor Christopher Anderson, who studies the airline industry, believes there is no need to panic just yet, pointing out, “I would absolutely say we’ve seen a dramatic increase in fuel prices, but without a doubt the entirety of that fuel cost has not been passed on to consumers. There’s obviously a correlation between airfares and fuel prices, but it is not as strong as one might think.”

Delta Airlines is of the view that high airfares may continue for a while yet despite strong appetite for travel. 

All the high costs will affect airlines’ profitability. Many are already cutting routes, adding fuel surcharges, raising fares and raising baggage fees. The International Air Transport Association (IATA), which represents more than 370 airlines, has said net profits of all the airlines combined are expected to be US$23 billion for 2026, down from the US$45 billion registered for 2025. 

Outgoing Director General of the IATA, Willie Walsh, is forecasting that global airline industry profits would be reduced by half due to falling demand. He predicts this year will be the worst financial year for the airline industry since the COVID years.