"Since Iran virtually shut down the vital Strait of Hormuz this week - through which tanker ships carry 20% of the world's supply - crude oil prices have skyrocketed, and jet fuel prices in some markets have reportedly doubled. U.S. jet fuel prices jumped by 58% during the first week of the war, and United Airlines CEO Scott Kirby said the impact on airfares will "probably start quick.""
"Absent near-term relief, airlines around the world could be forced to ground thousands of aircraft while some of the industry's financially weakest carriers could halt operations. The sharp rise in oil prices came after some major producers in the Gulf States cut back production due to the shipping disruptions."
The Iran war triggers multiple aviation disruptions affecting U.S. air travel. Crude oil prices skyrocket after Iran closes the Strait of Hormuz, through which 20% of global oil supply flows. U.S. jet fuel prices jump 58% in the first week, with some markets seeing fuel costs double. Airlines expect airfares to rise quickly in response. Simultaneously, unpaid TSA officers create longer security lines at airports. The Department of Homeland Security resumes Global Entry processing. Regional changes include Alaska Airlines expanding SFO-LAX capacity, American Airlines exiting Santa Maria, and JSX resuming Napa-Southern California service. Infrastructure improvements continue with LAX's car rental center opening and Clear's biometric gates arriving at San Jose.
Read at SFGATE
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