TEXAS — Major U.S. airlines indicate that higher airfares will continue due to sustained operational costs, regardless of potential decreases in crude oil prices. This comes after U.S. airlines collectively experienced a $1 billion loss in the first quarter of the year.

The average price of jet fuel decreased by more than $2 per gallon from its April peak. On a recent Tuesday, a gallon of jet fuel cost $2.80. This price represents the lowest level since the Iran war began.

Aviation industry consultant Michael Boyd said: "If people will pay it, why would you take it back? I mean, if people are willing to pay an extra $5 to check a bag and there's no pushback, don't be silly." He added: "We have labor costs coming up. We have operational costs going up at airports. So in terms of looking forward to a future of bright low $59 fares, that was on another planet long, long ago." Willie Walsh, Head of International Air Transport Association, said: "We expect average jet fuel prices to be 70% higher year on year. And that will add $100 billion to our collective fuel bill this year."

United Airlines has recouped less than half of its increased fuel costs. Chief Executive Officer of United Airlines Scott Kirby said: "The longer this lasts, the higher the probability goes that the pricing increases hold. If things went back to mid-February normal, I think we get to keep 20 percent of the price increase next year." Chief Executive Officer of JetBlue Joanna Geraghty said: "Even if the war were to end, we're not planning for oil prices to snap back overnight. We think it's going to be a longer, protracted sort of unwind of the escalated fuel prices."

U.S. benchmark crude oil prices fell to approximately $80 per barrel following a tentative agreement to end the Iran war. Before the war, prices were $67 per barrel, and they exceeded $120 per barrel at the conflict's peak. Oil refineries typically pay for crude oil one month or more in advance of processing it. Energy Policy Research Foundation fellow Michael Lynch said: "The tendency of gasoline prices to fall slowly is partly because the raw material takes weeks to work through the system until it's delivered to consumers."