Airline tickets are unlikely to get cheaper even if fuel prices fall, an American Airlines executive has warned, as soaring costs linked to the Iran war push the carrier toward an annual loss.

Jet fuel prices have more than doubled since the Iran war began in late February, forcing airlines to raise fares. But even when fuel prices fall, travelers may not see savings as carriers try to protect their profits and recover higher operating costs.

“If fuel comes down, I think airfares probably stay largely where they’re at right now,” American’s finance chief Devon May told the Financial Times this week . “If fuel prices go up, we need to generate higher yield, we need to generate higher fares to offset that higher fuel price.”

The average base fare, not including extra fees for checked bags or choosing seats, rose from $405 in late 2025 to $428 in the first three months of this year and $436 in the second quarter, according to the Bureau of Transportation Statistics .…