Business
Rising Oil Prices From Iran Conflict Could Push Airline Fares Higher This Summer
Air travelers may face higher ticket prices this summer as rising oil costs linked to the ongoing conflict in Iran send jet fuel prices soaring.
The disruption follows Iran’s blockage of the Strait of Hormuz, a key route for roughly 20% of the world’s oil supply, pushing crude above $100 a barrel and national gasoline prices to their highest levels since October 2023.
Jet fuel has not been spared. According to the Argus US Jet Fuel Index, prices reached $3.99 per gallon last Friday, just ahead of the busy travel season, NY Post reported.
“Prices have gone absolutely crazy in the markets,” said Michael Taylor, travel practice lead at JD Power.
“I would expect to see a triple-digit impact on tickets depending on how much the airline is willing to absorb and what the competitive marketplace looks like.”
The surge in fuel costs could hit long-haul international flights hardest, which consume more jet fuel than shorter trips. Airlines have been forced to reroute flights around parts of the Middle East to avoid conflict zones, further increasing fuel consumption.
While some international carriers, such as Cathay Pacific and Air France-KLM, have announced higher fuel surcharges, most US airlines typically raise overall ticket prices instead.
“These increases are already showing up online,” Taylor noted, pointing to examples like $900 round-trip tickets from JFK to Orlando in June.
Airlines May Absorb Extra Fees
Airlines are expected to avoid raising fees for extras like checked bags or priority seating, as these have the greatest impact on customer satisfaction.
Fuel costs account for 20-40% of airline operating expenses, making them highly sensitive to market shocks.
Many European and Middle Eastern airlines hedge their fuel purchases, securing fixed prices months or years in advance.
In contrast, most US carriers have abandoned this practice, leaving them vulnerable to sudden price swings.
United Airlines CEO Scott Kirby told CNBC that higher fuel costs would have a “meaningful impact” on the carrier’s financial results, likely affecting ticket prices soon.
Analysts warn that continued disruptions could extend the effect. Iraq, Kuwait, and Saudi Arabia have already cut output, while Iran reportedly continues to lay mines in the Strait of Hormuz.
According to BBC, Jane Hawkes, a consumer travel expert, said, “Airlines tend to build fuel costs into their pricing, so if those costs stay high, we may well see fares creep up as we head towards the summer holidays.”
Originally published on vcpost.com
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Costco is making a bold move into fertility care.
The membership-only retailer announced last Monday it will begin offering fertility treatments to customers at a steep discount through a new nationwide partnership with healthcare providers.
The initiative brings together telehealth provider Sesame and fertility clinic IVI RMA North America to provide a full spectrum of services, including in vitro fertilization (IVF), egg freezing and intrauterine insemination (IUI).
Most notably, the service will slash one of the largest out-of-pocket costs in fertility care, offering savings of up to 80% on medications, including Follistim, which can cost around $2,000 per cartridge. As a result, patients could save thousands of dollars on each cycle.
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A Costco store in Alhambra, California, US, on Thursday, June 27, 2024. (Eric Thayer/Bloomberg via Getty Images / Getty Images)
The company says the program is designed to break down one of the biggest barriers to care for the 1 in 6 Americans struggling with infertility, making fertility treatment more accessible than ever.
“Our partnership with Sesame and IVI RMA reflects our commitment to transparent and affordable solutions that reduce barriers, are more accessible, and more affordable for our members,” Richard Stephens, senior vice president of Pharmacy at Costco, said. “By combining transparent pricing with coordinated care, we’re removing the barriers that have historically kept quality fertility treatment out of reach for too many families.”
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A nurse communicating with a patient. (Getty / Getty Images)
The program and its specially negotiated discounts are exclusively available to Costco members, who pay a membership fee for access to the store and its offers.
The program is available nationwide and can be accessed online.
Costco pharmacies will dispense the medications required for patients using the company’s exclusive fertility service partnerships. (Toronto Star Archives/Toronto Star via Getty Images / Getty Images)
The program combines Sesame’s direct telehealth access for treatment planning, IVI RMA North America’s specialized clinics for medical procedures, and Costco’s pharmacy to fulfill the necessary medications.
Through Sesame, patients can complete evaluations and diagnostic workups, allowing doctors to map out a personalized treatment plan.
If patients require major specialty procedures such as IVF or IUI, they are connected to IVI RMA clinics where discounts have been negotiated for Costco members.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORP. | 996.16 | -5.58 | -0.56% |
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The IVI RMA network also provides preimplantation genetic testing of embryos (PGT-A), single embryo transfers, fertility preservation, and specialized fertility care for LGBTQ+ patients.
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Operator
Good afternoon, and welcome to the HealthEquity Fourth Quarter and Full Year 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Richard Putnam. Please go ahead.
Richard Putnam
Vice President of Investor Relations
Thank you, Gary. Hello, everyone. Thank you for joining us this afternoon. This is HealthEquity’s Fourth Quarter Fiscal 2026 Earnings Conference Call. My name is Richard Putnam, I do Investor Relations for HealthEquity. Joining me today are Scott Cutler, President and CEO; Dr. Steve Neeleman, Vice Chair and Founder of the company; and James Lucania, Executive Vice President and CFO.
Before I turn the call over to Scott for our prepared remarks, we note that the press release announcing our fourth quarter financial results was issued after the market closed this afternoon and that it includes certain non-GAAP financial measures that we will reference here today. You can find a copy of today’s press release, including reconciliations of these non-GAAP measures with comparable GAAP measures on our Investor Relations website, which is ir.healthequity.com.
Our comments and responses to your questions reflect management’s view as of today, March 17, 2026 and they will contain forward-looking statements as defined
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