How the Iran war is disrupting air travel — and advice if you’re planning a trip

The war in Iran is rattling the aviation industry, from flight cancellations to rising costs for jet fuel. So if you’re planning to travel this spring or summer, should you grab a ticket now, or wait?

“You should go ahead and book,” says Sean Cudahy, an aviation reporter at The Points Guy travel and personal finance website.

It’s generally recommended to buy international flights further in advance than domestic trips. But in the current circumstances, Cudahy says he would go ahead and book even domestic flights.

His advice is a sign of how the Middle East conflict is rippling outward, affecting prices and itineraries around the world, beyond the thousands of travelers who were stuck after the war forced a barrage of flight cancellations.

Airlines warn that ticket prices will rise with fuel costs

The war’s effect on travel was sudden and striking, resulting in the cancellation of more than 46,000 flights in and out of the Middle East from Feb. 28 — when the U.S. and Israel began bombing Iran — to March 11, according to Cirium, the aviation analytics company.

That includes Dubai International, the busiest airport in the world for international travel, according to Airports Council International, along with popular hubs in Doha and Abu Dhabi.

But even airlines far from the Mideast are facing a sudden surge in a core expense: jet fuel. At the beginning of the year, a gallon of jet fuel cost $2.11; by March 10, the price rose to $3.40, according to the Argus U.S. Jet Fuel Index, a gain of more than 60%.

The spike came after tanker traffic through the Strait of Hormuz came to a virtual halt, as Iran announced it would close the waterway that normally handles about 20% of the world’s oil and liquified natural gas.

Mideast refineries had been sending some 470,000 barrels of jet fuel each day through the strait to airports in Europe and elsewhere, says Rick Joswick, who heads the near-term oil analytics team at S&P Global.

The price for a gallon of jet fuel soared close to $4 in the first week of the war, prompting United Airlines CEO Scott Kirby to say on Friday that airfare price hikes from higher fuel costs would “probably start quick.”

As they absorb higher fuel costs, airlines could adjust prices higher across the board, or they might tuck an increase into premium fares, where they’ll be less noticeable, Cudahy of The Points Guy says.

Several airlines have publicly confirmed that they’ll be raising prices to compensate, as Reuters reports. Other carriers, such as Japan Airlines, publish a schedule of fuel surcharges triggered by cost increases.

“I do think that this is ultimately going to lead to higher fares for everyone,” Cudahy says. “The only question now is how significant and how long does it last?”

Crisis parallels earlier global disruptions

The higher fuel prices reflect a genuine struggle to ensure the aviation industry has ample supplies, says Joswick.

“It’s not irrational. It’s not some trader bidding up prices,” he says. Comparing the situation to the COVID-19 pandemic, he adds, “The consumption of toilet paper didn’t change. But you notice that all of the supermarkets ran out of toilet paper, right? Everyone wants to be sure that they have coverage of a critical need.”

Both Cudahy and Joswick compare the Iran conflict’s ripple effects to Russia launching its full-scale invasion of Ukraine in 2022, which set off flight disruptions and higher fuel prices. As long as the Strait of Hormuz is closed, Joswick says, prices will keep rising.

“If that were to persist, this would be like a 1979 kind of [oil] crisis,” he says. “Anything over a month, and you’re seeing a substantial long-term price increase until the flows are restored.”

The U.S. and other large economies can mitigate those effects by tapping strategic oil reserves — which they opted to do on Wednesday. But Joswick predicts that while such a move can help ensure adequate oil supplies, it might not bring a sharp drop in jet fuel prices. For one thing, he says, the U.S. reserve focuses on holding crude oil, not jet fuel. And he cites logistical challenges, such as California’s reliance on jet fuel that it either produces or imports.

Tips for buying a plane ticket right now

If you’re ready to take your chances and book a flight, Cudahy has some guidance.

First, don’t buy a restricted, basic economy ticket that you can’t change later, he says.

Instead, he recommends buying a regular, full-fare economy ticket: “If the price does eventually drop, you can then go back and change it and capture the lower price.”

Another tactic, Cudahy says, is to use airline miles.

“You can generally cancel it and get all your miles back later, if the price goes down,” he says.

Use services such as Google Flights to comparison shop and set up alerts for price changes. And if you book flights through a third-party site such as Expedia, be sure you understand its cancellation and change policies, in case they differ from the airlines.

Because of the chance for renewed hostilities in and around Iran, Cudahy says he would try to avoid nearby airline hubs for the next couple of months.

But he wouldn’t wait to book a ticket.

“In the same way that we’re seeing relatively long lines at gas stations with folks trying to get their tanks filled up before the price goes up even more than it already has, I would be thinking the same way when it comes to airfare right now,” he says.

While you might drive an extra mile or two to find cheaper gas, airlines and airports don’t have that luxury when they buy jet fuel.

“Prices are always set on the margin,” Joswick says. “That last airport that needs to buy jet fuel, they will pay whatever it takes to get that. And that price then becomes the standard for the whole industry.”