‘It’s an Opportunity for Us’: Behind Closed Doors, Airlines Gleefully Cash-in on Iran War
‘It’s an Opportunity for Us’: Behind Closed Doors, Airlines Gleefully Cash-in on Iran War
The Iran war is forcing working families to pay over $4 per gallon for gas at the pump, while airline executives jack up prices on everything from fares to bags, telling investors “the revenue environment is really strong.”
As President Donald Trump’s Iran War strains working families’ wallets, Groundwork Collaborative today released new analysis exposing airline executives for using the conflict to increase their profits — and bragging about it.
Prices have skyrocketed since Trump launched the war: the price of jet fuel has nearly doubled, and Americans have already paid over $8.4 billion more at the pump. Companies have begun raising prices in response, with Amazon, USPS, and FedEx putting fuel surcharges on shipments. Airlines are doing the same, charging higher ticket prices and raising baggage fees. Yet, across numerous investor calls, airline executives gleefully discuss the prospect of passing higher prices directly to consumers, ensuring that working families ultimately bear the full brunt of the conflict.
Groundwork’s Executive Director Lindsay Owens reacted to airlines’ plans to hike prices, saying,
“The war in Iran has airline executives practically tripping over themselves. They’re following the COVID-era corporate playbook: giddily discussing how they can pad their pockets by using a crisis to gouge consumers already past their breaking point. Don’t take it from me; just listen to what they’re saying.”
Executives See the Iran War as Another Opportunity to Price Gouge Consumers
- “I’m hoping that oil prices go down, but in a way, like, it’s an opportunity for us. We will definitely win on the other side.” – Scott Kirby, CEO and Director, United Airlines, 3/17/2026
- “I am incredibly glad to have that extra revenue source coming online.” – Robert Jordan, CEO, Southwest Airlines, 3/17/2026
- “Our revenue performance is improving at a rate greater than we had originally anticipated.” – Robert Isom, CEO, American Airlines, 3/17/2026
- “The revenue environment is really strong.” – Scott Kirby, CEO and Director, United Airlines, 3/17/2026
- “We’ve had 8 of the 10 highest sales days in our history this quarter. Five of those, just this month since the war started.” – Ed Bastian, CEO, Delta Air Lines, 3/17/2026
- “We’ve been pleased that we’ve been able to get people to buy at the higher level so far.” – Ben Minicucci, CEO, Alaska Air Group, 3/17/2026
The Industry is in Lockstep on Passing the Pain onto Consumers
- “We obviously are seeing fare increases across the industry at the moment, and we’re following suit. I think that’s constructive to the industry.” – James Dempsey, CEO, Frontier Group, 3/17/2026
- ”It is as fast as I’ve ever seen it in my career and pretty remarkable to be standing here with this fuel price spike and not just United, but other airlines talking about recovering, having at least the possibility and the potential to recover, 100% of the increase in fuel price.” – Scott Kirby, CEO, United Airlines, 3/17/2026
- “The speed in which you’ve seen [higher fares] in just the past two to three weeks has, I think, put a lot of credibility that the industry wants to make money.” – Joe Esposito, Chief Commercial Officer, Delta Air Lines, 3/17/2026
While Consumers Pinch Pennies, Executives are Clear They’ll Come out on Top
- “Our customers also bear 100% of the fuel risk.” – David Grizzle, CEO and Chairman, Republic Airways, 3/4/2026
- “That price will get paid by customers. There will be less flying because you can stimulate less, and I think that’s very sad.” – Martin St. George, President, JetBlue Airways, 3/17/2026
- “We have tended to win in periods of challenge for consumers.” – Robert Jordan, CEO, Southwest Airlines, 3/17/2026
Airlines are Jacking Up Baggage Fees as Families Already Feel the Pain
- As Trump’s Iran war sends jet fuel prices soaring, airlines are wasting no time making travelers pay more – not just in higher ticket prices, but in higher baggage fees as well.
- American Airlines today announced it would increase baggage fees for all domestic and some international flights by $10 for the first and second bags and $50 for a third.
- Delta announced this week that it would start charging $10 more to check a bag on domestic flights and select international flights.
- Southwest Airlines announced a $10 checked bag price increase on first and second checked bags earlier this week as well.
- United Airlines announced they would charge $10 more for the first two checked bags and an extra $50 for the third. It is the first time in two years that United has raised bag fees.
- Jetblue also raised fees last week in response to the Iran War, announcing that passengers will now have to pay a minimum of $39 to check a bag, up from $35. Passengers who pay less than 24 hours before departure get charged an extra $10, and travelers who fly during peak periods around major holidays or over the summer will be charged a premium.