Airfare Apocalypse Now Fuel Costs Send Ticket Prices Soaring

Yeah Baby Fuel Costs Are Through the Roof

Groovy cats and kittens let's talk about something that's about to hit your wallets harder than Dr. Evil's latest scheme fuel costs. Since the U.S. and Israel decided to have a bit of a dust up with Iran (not a euphemism I assure you) jet fuel prices have gone bananas. And guess what that means for you the jet setting public? Higher airfares baby. I mean seriously who does number two work for? Airlines apparently. They're all scrambling to cover these costs and that means your dream vacation might just cost you an arm and a leg... or maybe just a pinky. One million dollars.

Shagadelic Airlines Scramble to Keep Up

Airlines are doing what they do best passing the buck right on to you. Cathay Pacific is doubling fuel surcharges (double oh dear) and Qantas Scandinavian Airlines and Air New Zealand are all raising fares like they're going out of style. Air New Zealand is even pulling its financial outlook which sounds about as stable as my love life. They might even have to adjust their routes which means longer flights. But don't worry you'll have more time to practice your Austin Powers impression at 30,000 feet. Want to learn more about the situation? Check out this article Chaos Unleashed Gas Prices Soar Amid Middle East Tensions.

Oh Behave Experts Weigh In

The big cheeses at U.S. airlines are gathering in Washington D.C. to talk about how much this whole shebang is going to cost them. Analysts are predicting a hit to earnings especially in the first quarter which is about as welcome as Dr. Evil at a swingers party. United Airlines CEO Scott Kirby said higher fares are coming which is about as surprising as me wearing velvet. But hey travel demand is still strong so maybe we can all just suck it up and pay more? Yeah that sounds about right. It's all about those unit revenues baby

Groovy Tips for Thrifty Travelers

So what's a groovy cat to do? Scott Keyes the flight deal guru says book early. That's right get in there and snag those tickets before they get any more expensive. And here's a pro tip avoid those restrictive basic economy tickets like you'd avoid Dr. Evil's evil plans. If the price drops later you can get some of that sweet sweet credit back. It's like winning a game of strip poker with your mojo fully intact. Heads you win; tails the airlines lose.

Yeah I Know Fuel is a Big Deal

Jet fuel isn't just some hippie dippie side note it's airlines' biggest expense after labor. United spent over 11 billion dollarydoos last year on the stuff. And with prices going up faster than my libido at a Swedish massage convention airlines are feeling the pinch. Some analysts think the financial impact will be most acute in the next few months as airlines can't just retroactively raise fares. Delta and United are supposedly better positioned because of their high end demand which basically means rich people will pay whatever it costs to get to Ibiza.

Not So Fast Capicity Constraints and Airspace Closures

Even if fuel prices come down airlines aren't exactly going to start throwing money at you. They're all about capacity which is basically how much they're flying. If fares get too high they'll cut back on flights. Courtney Miller from Visual Approach Analytics says airlines are setting expectations. And with airspace closures in the Middle East causing all sorts of chaos capacity is constrained which drives up fares even more. Qantas is even making extra stops to pick up more customers because why not squeeze every last drop out of this situation? Finnair is seeing a 15% increase in prices to Asia. Apparently demand for jet fuel is inelastic. You can't dry up an airport.