By Arlenys Tabare
The spike in fuel prices in recent weeks has caused many airlines in the United States to not only increase their flight rates and some services, but now decide to cut route distances to represent significant savings.
Since the war in Iran began on February 28, Jet gas prices have skyrocketed more than 95%, going from $2.50 before the conflict to $4.85 this weekand since for airlines fuel usually represents between 25% and 30% of total costs, the strategy they have implemented is to increase prices and cut certain routes.
In this regard, Stephen Rooney, chief economist at Tourism Economics, told CBS that the rebound mainly in oil is causing a real impact on jet fuel prices. “Jet fuel is a huge cost for airlines, especially on long-haul flights,” he said.
Rooney further added that many airlines have sold tickets based on their fuel price forecasts; However, when the cost goes up, they cancel flights or add surcharges to fares. “The tickets are sold under contract and you cannot turn back, so they cancel some routes to avoid it,” stood out.
Among the airlines announcing changes are Air Canada, Delta Air Lines; In the case of the latter, it detailed last Friday which routes it will cancel for the summer season from John F. Kennedy International Airport in New York, Detroit and Boston:
- JFK to Memphis, June 7 to September 7.
- JFK to St. Louis, June 7 to September 7.
- DTW to Reykjavík, Iceland, from May 7 to July 6.
- From Boston to Nassau, Bahamas, from July 18 to September 5.
Through a statement, an airline spokesperson mentioned that the reduction in routes is due to various factors, both cost and operational. “We will contact affected customers directly to offer them alternatives,” he added.
For its part, Air Canada indicated that, from June 1 to October 25, it will cut routes from Toronto and Montreal to New York’s JFK airportdue to the high cost of fuel.
The airline stated in a statement that “jet fuel prices have doubled since the start of the conflict with Iran and some less profitable routes and flights are no longer economically viable for the company, so we are making appropriate scheduling adjustments.”
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