00:00It's Benzinga bringing Wall Street to Main Street
00:02Volatile fuel prices and resilient travel demand are keeping airfare high while squeezing
00:06airline profits this year, according to CNBC.
00:09Jet fuel costs surged after the Iran War began in late February, while Strait of Hormuz disruptions
00:15and strong demand pushed refined product prices higher.
00:17Airlines have responded with higher fares, fuel surcharges, baggage fees, and some capacity
00:22cuts.
00:23U.S. airfare rose 23.4 percent year-over-year in August.
00:27Fare-tracking platform Hopper said Thanksgiving and Christmas round-trip fares were up 31 percent
00:32and 23 percent, respectively, as of September 24th.
00:36Analysts expect elevated fuel prices to pressure fourth-quarter earnings and could prompt more
00:41flight reductions, potentially giving carriers additional pricing power.
00:44For all things money, visit Benzinga.com.
