As airlines face widespread flight cancellations due to recent conflicts in the Middle East, oil prices have reached new heights in the last month. Airfare prices similarly grew as a result of sanctions on Russia during the onset of its war on Ukraine in 2022.
Higher crude oil prices tend to push up jet fuel costs and because fuel is such a big airline expense, that often leads to higher airfares or fees for passengers.
In recent weeks, oil prices have risen above $100 per barrel, a sharp increase from around $70 before the conflict between the U.S. and Iran began in late February.
At the same time, jet fuel spot prices have risen from around $2.42 per gallon at the end of February to nearly $4.69 per gallon in April.
When fuel costs rise, it directly affects the operating costs for airlines which is why you may notice a bump in price for your ticket, and fees for other services such as checked baggage.
So far, Delta, United airlines and JetBlue have announced price increases for checked bags. On April 7, Delta said fees for the first checked bag will rise by $10 to $45, the second by $10 to $55, and the third by $50 to $200.
Meanwhile, some airlines have already implemented price increases, including Scandinavian Airlines (SAS) in March. Air France-KLM said it would increase prices for long-haul flights as a result of higher fuel costs. Cathay Pacific announced higher fuel surcharges for tickets on specific routes.
Higher costs aren’t the only thing customers will have to be wary of. Greater fuel prices may mean some flights will have to be cancelled, which leaves passengers with less options when the time comes to book.
But there are ways to potentially save some cash. Speaking with Yahoo Finance, Adam Morvitz, founder and CEO of flight booking service Point.me explained some of the things to consider before booking your flights in the coming weeks.
You should use your rewards credit card if you have one and have been saving points. However, new airline fuel surcharges could impact award tickets, with higher taxes and fees placed on tickets booked, despite still being one of the best ways to save.
“If cash prices increase, you’re often getting even more value from your points because you’re avoiding those higher fares,” he said.
Another fool-proof way to save money on flights is to plan ahead – don’t wait until the last minute to book.
Jesse Neugarten, CEO at the travel membership service Dollar Flight Club, suggests finalising your booking ‘one to three months out for domestic travel and two to six months in advance’ for international vacations.
Prices tend to increase closer to the travel date because of increased demand, and you’ll definitely want to avoid that.
Flexibility is also a proven hack to same money. Perhaps you can leave a day or two earlier than you initially planned, or perhaps you can fly out on a different day, or week. It could make a huge difference.
Booking tickets that allow some flexibility such as granting a refund or airline credit could also stop you from losing too much money if you decide to cancel, such as in the event plans change or the dates no longer work.
