Iran War Drives Airfares Up 42%, Forcing Americans to Cancel European Vacations

The average price for an international flight has jumped 42% since late February, as the war in Iran has doubled jet fuel prices and disrupted global supply chains. American travelers are scaling back overseas plans, shifting to domestic destinations, or canceling trips entirely.

The Details

According to travel site Kayak, the average round-trip international flight reached $1,097 on April 20, 2026, up 42% from $774 on February 23 and 14% higher than the same period last year. Domestic fares have risen 9% on average since late February.

Jet fuel prices have roughly doubled since the conflict began on February 28, 2026, when U.S. and Israeli military operations disrupted oil and jet fuel shipments through the Strait of Hormuz. Al Jazeera reports fuel prices have climbed more than 80% since the war started.

The impact on airlines has been severe and immediate. Lufthansa has canceled 20,000 flights through October due to fuel shortages in Europe, where the last shipment of jet fuel through the Strait of Hormuz arrived last week, according to Argus Media. Airlines including United, Delta, Air France-KLM, SAS, Philippine Airlines, and Cathay Pacific have reduced routes and raised ticket prices. Air Canada is temporarily cutting service to JFK, while United is pruning flights during less popular times.

Economy travelers are feeling the squeeze most acutely. Consultancy Teneo found that the lowest-priced economy tickets now cost 24% more on average than a year ago, partly because airspace restrictions are forcing planes to fly longer routes.

The financial burden is already changing behavior. Lea Ridgeway, an American traveler planning a trip to Ireland to see The Cure in concert, told NPR the ticket prices are eating into money set aside for the holiday. Lee Collins, an Atlanta resident, said he is considering fewer flights to visit family in Washington, D.C., adding, "It's going to be a staycation this year."

Travel agencies report mixed signals. Arlene Hogan, owner of Vacays4U, said her fall bookings have dropped about 10% and that other agency owners are seeing the same challenges. "It was very eye-opening because we all had the same challenges. We are all seeing a dip in bookings," she said. She noted that Americans are shifting toward domestic destinations like Hawaii, which travelers perceive as safer because it is still within the United States. "Hawaii is hot," Hogan said. "Even though Hawaii is an expensive destination, when you think about it. However, it gives people a sense of security because it's still the United States."

However, Terry Dale, president and CEO of the United States Tour Operators Association, said his members have not reported a decline in bookings or an uptick in canceled trips, attributing continued travel demand to a record-high stock market and growing investment portfolios. "There's more pause. But they're still traveling," Dale said.

The political dimension is sharpening. United CEO Scott Kirby indicated on an earnings call that the airline might keep some prices higher even after the conflict ends to improve profit margins. Rep. Ritchie Torres (D-N.Y.) has called on major airlines to commit to lowering prices when the war winds down.

Context

The Iran war began on February 28, 2026, disrupting oil and jet fuel supplies through the Strait of Hormuz. Europe has been hit especially hard by fuel shortages. The 2026 World Cup in North America is creating additional travel demand pressure, though hotel bookings are running below projections.

What's Next

United CEO Scott Kirby has signaled that prices may remain elevated after the conflict ends, drawing scrutiny from lawmakers including Rep. Ritchie Torres. Lufthansa's cancellation of 20,000 flights through October suggests European carriers expect the fuel crunch to persist for months. In the near term, travelers are expected to continue shifting toward domestic destinations like Hawaii while airlines prune routes and restrict capacity.