Since the Iran war led to the closing of the Strait of Hormuz, about 20 percent of global oil supply has been choked off, sending prices sky high, especially for jet fuel. So far, the war may already be costing the airline industry an additional $15 billion. Airlines have responded by raising ticket prices, charging more for bag fees, and cutting flights that they’ve deemed unprofitable because of higher fuel costs.
But even if the war were to end and fuel costs stabilize, major airlines might not be willing to bring their prices back down. In fact, corporations seem all but guaranteed to take advantage of pressuring consumers to pay more to fly.
For over 40 years, flying has been an affordable way to travel. We’ve been living in an era of cheap flights that has shifted air travel from a luxury experience to a globalized mode of public transportation. This video explains how that era might be coming to an end.
