Jet fuel costs are climbing, and your next flight is about to get more expensive.

A Deutsche Bank analysis found that average domestic U.S. airfares have increased between 15% and 124% for travelers booking flights later this month, with some carriers adding fuel-related surcharges as the conflict in Iran nears its second week. Airlines, including Qantas, Scandinavian Airlines, and Spirit Airlines, have already adjusted pricing, while travel experts are urging consumers to act quickly to lock in fares before further increases take hold.

The numbers are striking. According to the Deutsche Bank analysis, average fares for transcontinental flights have jumped over 100%. A Spirit Airlines late-March flight, for example, surged from $86 to $193 — more than doubling in cost.

Airlines are Already Passing Costs to Consumers

According to CBS News, the issue has sparked debate among industry analysts about how much pain consumers should expect — and how much of the burden airlines will absorb versus pass along. The answer, as is usually the case in free markets, depends on competition and demand elasticity. But right now, the trend line is clear: fares are going up.

Qantas International told CBS News this week that it "is increasing fares this week in response to rising costs, including the significant increases in jet fuel prices." The airline added that increases "will vary from route to route," signaling that popular corridors to the Caribbean, Florida, and transatlantic destinations may feel the most pressure.

Scandinavian Airlines characterized its own fare hike as "a temporary fuel-related price adjustment." Whether it stays temporary depends entirely on the trajectory of oil prices — something no airline can control.

Fuel is a Massive Piece of the Cost Puzzle

Fuel prices account for roughly one-fifth of airlines' total operating expenses, according to Julian Kheel, creator of Points Path, a flight awards search engine. That makes the industry acutely sensitive to oil market swings. "If oil prices continue to stay high, consumers can absolutely expect higher airfares," Kheel told CBS News.

Kheel was blunt about the math: "The only real way to offset that expense is to increase the cost of tickets." Airlines operate on thin margins as it is, and when a major input cost spikes, the pricing response is swift. This is basic supply-side economics at work — costs rise, and someone has to pay.

Deutsche Bank went so far as to call elevated fuel costs an "existential threat" to some carriers. That language underscores just how fragile airline balance sheets can become when oil prices move sharply. For budget carriers with less hedging capacity, the squeeze is especially acute.

Demand Destruction Could Limit How Far Fares Rise

Khalid Usman, an aviation expert with management consulting firm Oliver Wyman, offered a counterbalance. He noted that airlines aren't passing all added costs to consumers — at least not yet. "Increases in pricing can lead to demand destruction, and fewer travelers is not good for the airline," Usman said.

That tension between recovering costs and maintaining passenger volume is the central economic tightrope airlines are walking. If demand erodes, Usman suggested, carriers will face pressure to make fares more affordable. The market, in other words, will discipline pricing — even if fuel costs remain elevated.

This is exactly how competitive markets should function. Airlines that overreach on pricing will lose customers to competitors willing to absorb more cost. Travelers, meanwhile, benefit from shopping aggressively and remaining flexible.

What You Can Do Right Now to Save Money

Travel experts offered several practical strategies for consumers looking to navigate the turbulence. Here's what the pros recommend:

• Book now. Ben Mutzabaugh, managing editor of The Points Guy, said: "Some fares have already jumped significantly, and overall they are going up. So if you have a trip coming up, book now."
• Aim for the sweet spot. Mutzabaugh noted the best-fare window is typically one to two months before travel — making now a solid time to lock in summer trips.
• Consider refundable or changeable fares. Kheel recommended this approach because "if oil prices do drop and airfares fall in response, you'll be able to rebook and capture that lower airfare."
• Call for credits if prices drop. Scott Keyes, founder of Going.com, noted: "Airlines allow you to take advantage of price drops, but you don't get cash back, you get credit."
• Use miles and points. Mutzabaugh pointed out that miles and points are typically deposited back without penalty, while cash refunds may involve fees or credit. Keyes added that points and miles pricing may remain steady even when cash fares rise.

Keyes summed up the volatility well: "Fares are constantly ping-ponging around, but because they're so exposed to the changing price of oil, that's adding to the volatility." Monitoring fares consistently, he said, can help consumers save — even in a rising-cost environment.

The Bottom Line for Your Wallet

Geopolitical instability has a direct pipeline to your travel budget. The conflict in Iran is driving oil prices higher, and airlines have no choice but to respond. Whether you're booking a quick domestic hop or a transatlantic getaway, the smart play is to act early, stay flexible, and use every tool at your disposal — from refundable tickets to points redemptions — to keep costs in check.