US airfares to stay high despite possible Iran ceasefire

US domestic airfares are 26.5% higher than a year ago, according to June's consumer price index data, and analysts say prices globally are up 25-30% compared with 2025. Even if a lasting US-Iran ceasefire lowers oil prices, experts expect airfares to remain elevated due to strong travel demand, reduced oil refining capacity, and supply constraints at Boeing and Airbus. Jet fuel prices, the biggest operating cost for airlines, have surged 65% since January, and the conflict gives carriers cover to pass on costs.