
Fuel Crisis and Resilient Demand Squeeze Airline Profits Despite Record Fares
Airline profits are shrinking despite soaring fares due to persistent jet fuel costs driven by the Iran conflict and Strait of Hormuz disruptions. While U.S. carriers report double-digit revenue growth, analysts expect lower profit margins as airlines cut capacity and raise prices to cover expenses. Holiday fares have surged significantly, with Thanksgiving tickets up 31% year-over-year, while overall passenger volume remains slightly down but demand stays strong.













