Iran peace deal isn't bringing cheaper fares, good for airline stocks

TSA flyers hoping for cheaper flights this summer may be disappointed. Oil prices — airlines' second-largest expense after labor — have tumbled to nearly $70 a barrel from highs above $100 after the US and Iran announced a preliminary agreement to end the nearly four-month war that closed the Strait of Hormuz, a vital artery for global oil shipments.

Aviation analysts say carriers won't rush to cut ticket prices or their lucrative checked-bag fees even if the war ends. Since the US and Israel launched the conflict in late February, airlines have trimmed unprofitable routes and raised fares and ancillary fees to offset higher fuel costs.

Richard Aboulafia of AeroDynamic Advisory noted, "Things are pretty good, maybe traffic is down a little, but profits aren't, right? So why would you?

United States, Iran, Strait of Hormuz

iran peace, oil prices, airline fares, checked bag, strait of, airline stocks, fuel costs, ancillary fees, unprofitable routes, richard aboulafia