How to save money on flights as airlines raise prices

For budget-conscious travelers, it’s gotten harder to escape the rising cost of airfare in recent weeks.

Airlines are raising bag fees, adding fuel surcharges and cutting flight schedules to manage the fallout from the Iran war.

Average economy fares rose to $998 for round-trip international flights as of March 30, up from $774 on Feb. 23, before the war started, according to data from Kayak, a travel search engine. Average domestic fares increased to $350 from $336.

Airlines have raised prices for consumers largely to offset the higher cost of jet fuel, one of the largest costs for airlines, according to travel experts.

Before a two-week ceasefire announced late Tuesday, Iran had effectively choked off traffic through the Strait of Hormuz, a waterway used to ship about a fifth of the world’s oil supply.

Jet fuel prices have nearly doubled since the Iran war began, to $4.81 per gallon on Tuesday from $2.50 on Feb. 27, according to an Argus Media jet fuel price index.

If jet fuel prices stay elevated for a full year — at a level roughly $2 per gallon higher than before the war — airfares would have to increase about $50 for each one-way fare, or about 17%, Deutsche Bank analysts wrote in a report on Tuesday.

“The most notable response to the surge in jet fuel prices has been fare increases (and fuel surcharges in international markets),” they wrote.

U.S. carriers such as Delta Air Lines, JetBlue Airways, Southwest Airlines and United Airlines recently raised fees to check bags.

Some airlines have also said they will cut flights that have become temporarily unprofitable due to higher fuel prices. United CEO Scott Kirby said the airline would trim off-peak flight schedules, especially on Tuesdays and Wednesdays, during the second and third quarters this year.

While there will still be flights available on those days, a reduced schedule means there will likely be more demand for those fewer seats — and higher prices, experts said.

“That will have a big impact on the price-sensitive traveler,” since flying on Tuesdays, Wednesdays and other off-peak times is generally a dependable way to score cheaper tickets, said Katy Nastro, a travel expert at Going, a travel deal website.

Oil prices retreated Wednesday after the ceasefire announcement, though analysts said it’s unlikely airfares and ancillary fees would normalize quickly, even if the ceasefire holds. Higher fees may be particularly sticky, especially if travel demand doesn’t fall, they said.

If that’s the case, don’t fret: There may still be ways for budget-conscious travelers to find a decent deal on flights, experts said.

“The playbook hasn’t gone fully out the window,” Nastro said. “Travelers still have some options.”

Lock in a good price