Higher Airfares Are Here to Stay, but Don’t Expect Airline Profits to Rise

Third-quarter earnings season for airlines kicks off Friday with Delta Air Lines, and many carriers expect record revenues. But most of those gains are being wiped out by surging fuel costs. Jet fuel prices have become increasingly volatile since the start of the Iran war, but have creeped up in recent weeks as fighting in the region has intensified. As of Thursday afternoon, the average price of jet fuel in the U.S. was at $4.50 a gallon, according to data from Argus Media published by Airlines for America. The trade group noted that the average price for jet fuel in September reached an all-time high at $4.37 a gallon, eclipsing the April average of $4.29. Delta, United Airlines, Southwest Airlines, and Allegiant Air appear to be among the few major U.S. carriers that will ma