Airfares Soaring Due to Iran Conflict

0:00On March 21st, airfares are climbing fast due to the Iran conflict, with the head of the global aviation industry comparing it to the tough times. Airlines faced right after 9-11, Willie Walsh, former British airways chief and now leader of the International Air Transport Association, made the comments at a summit in Brussels. He pointed out that tickets for flights between the United States and United Kingdom will feel the biggest pinch first and quickest. Like many UK carriers, American airlines buy less jet fuel in advance, so they're passing on the sudden price jumps to passengers right away. Competitors on the other side quickly match those increases, and it's not just transatlantic routes. Fairs are going up across the board. Travelers are holding steady with bookings, but shifting towards spots in western and southern Europe or North Africa, skipping places closer to the, trouble like Cyprus or Turkey. Americans seem set to raise prices rather than cut flights to cover costs and avoid debt.

1:01Jet fuel prices in Europe hit a record high this week, nearly double what they were before the conflict. Scandinavia's biggest carrier, SAS, already scraps some flights over the surge, while air France, KLM and others plan ticket hikes. There's worry about shortages if the Strait of Hormuz stays blocked. UK officials are working with carriers to keep operations going and ease the hit. If the war stretches on, expect even steeper fares by summer and possible fuel rationing that could ground more getaways.