Kayak

U.S. airlines lost $966 million in Q1 2026, driven by doubled jet fuel prices due to the war with Iran, leading to higher ticket costs and flight cancellations. The U.S.-Israel campaign against Iran and its aftermath have disrupted oil infrastructure and reduced oil passage through the Strait of Hormuz, exacerbating costs.

Airfare-prediction apps like Hopper, Kayak, and Google Flights struggle with this summer's unpredictable pricing due to exogenous shocks such as the closure of the Strait of Hormuz and rising jet-fuel costs. These apps rely on historical data for predictions, but chaotic market conditions have reduced their accuracy, leaving travelers with less reliable guidance on when to book flights.

The closure of Spirit Airlines may impact flight costs for budget travelers, with the average domestic round-trip flight price at $365 last week. This is the highest so far this year, according to Kayak. Budget travelers should be aware of potential cost changes.