You might not be going anywhere this summer

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Lizzie McGuire would be closing out her class trip at the Hard Rock Casino Cincinnati in this economy. Americans are sitting in limbo for summer travel plans as potential jet fuel shortages stemming from the Iran war put pressure on airlines to cut flights and raise airfares. As the most famous strait (aside from George) remains closed to much of the world’s oil, the global travel industry is bracing for a potentially chaotic summer. Delta said that jet fuel costs ballooned by $400 million in March alone. Alaska Air, American, and United have repeated similar warnings: Average global airfares jumped 24% to $465 on the week beginning March 9, compared with the same time last year, according to airfare tracker OAG. Transatlantic flight tickets 20 days out already cost $200 more on average than they did a month ago, a Deutsche Bank AG analysis found. United said it’s cutting ~5% of its flights in “off-peak periods” during the next two quarters to offset rising expenses. As a result, the share of Americans planning international trips over the next six months fell to 17%—the lowest it’s been since 2022, per the Conference Board. Not even Spirit can save you. Budget airlines with thinner margins are the highest risk when industry costs surge, so budget trips could also face steep fare hikes. Ryanair CEO Michael O’Leary refused to rule out price increases, saying the UK is more vulnerable to jet fuel shortages than other European countries because it relies on Kuwait for nearly 25% of its supply. What about a road tip? A cruise? Unless you were planning on biking, no form of summer travel is immune to rising oil prices. Gas topped $4 a gallon this week for the first time in two years, and cruises face similar fuel crunches. Analysts worry that Carnival, the only US cruise line that does not hedge fuel, could take a huge hit to its profits this year.