Holiday Airfare Surges 23% in 2026 Amid War in Iran; Experts Advise Booking Now
Holiday airfares are rising significantly due to high oil prices from the Iran war, with experts recommending that travelers book early and use travel insurance to mitigate costs.
Newsnibs Staff
- 2026-10-11
- Updated 3:18 AM UTC
Holiday airfares are climbing sharply this year, with average fares up 23% since fighting broke out in Iran sent oil prices higher, according to an October 9 report from The Points Guy. The booking app Hopper forecasts domestic Thanksgiving flights will cost 31% more than last year, while Christmas and New Year's travel is projected to run 23% above last holiday season.
The increases track a broader surge in operating costs across the industry. Delta Air Lines CEO Ed Bastian, speaking to CNBC on Friday, said travelers have kept booking despite the higher prices. "Fares will be a function of what the market bears," he said, adding that he sees no slowdown in demand.
Timing matters more than usual this year. Points Path data shows November 23, the Monday before Thanksgiving, as the cheapest day to depart, while November 29, the Sunday after the holiday, is the most expensive — roughly 40% pricier than Black Friday. The flight-deal tracker Going reports the Midwest is seeing the steepest Thanksgiving price increases, while the Northeast faces the highest costs for Christmas travel.
Flight cancellations have hit a four-year high this year, adding another variable for travelers already facing higher fares. New federal regulations taking effect this month may limit airline liability in such cases, according to the report.
The Points Guy is advising travelers to book now rather than wait for prices to ease, and to use credit cards that include travel insurance to offset losses from cancellations or mechanical delays.
Frequent flyers face a separate squeeze: award ticket prices have risen due to dynamic pricing models airlines use to set redemption costs. The report points to workarounds, including booking American Airlines flights through Alaska Airlines' Atmos Rewards program, or transferring points to Air France-KLM's Flying Blue program to book Delta flights at lower point totals.
Photo by Jaime Maldonado on Unsplash