American Airlines CEO Sends a Clear Warning to All Travelers

The summer season is typically the busiest time for air travel in the United States. But as that season approaches, it sounds like customers can expect to pay a lot more money for their plane tickets.

United Airlines CEO Scott Kirby has already issued a warning to customers about a rise in ticket prices as a result of the oil supply issues caused by the ongoing conflict in the Middle East. Now, American Airlines CEO Robert Isom is sounding the alarm, too.

Oil Prices are Surging

On Feb. 28, the United States and Israel launched a joint offensive against Iran. The conflict has already spilled over into other oil-producing countries in the Middle East and has now threatened key trade routes, effectively shutting down the Strait of Hormuz, where roughly 20% of the world's oil supply passes through.

Travel industry analyst Henry Harteveldt, founder of the Atmosphere Research Group, recently warned that he is already seeing commercial air ticket prices increase as a result of the conflict.

Harteveldt said that most of those increases have been for premium tickets in business and first-class cabins, noting that prices are less likely to climb for “people who buy basic economy or discount coach tickets.”

Harteveldt said that some carriers are already beginning to add “fuel surcharges” to fares for some long-haul international routes.

'$400 Million Impact'

Earlier this month, United Airlines CEO Scott Kirby warned that ticket price increases will "likely start quick" as the price of oil surges, and he does not expect oil prices to come down anytime soon.

This week, the American Airlines CEO issued a similar warning about oil prices and how they will impact the industry as he indicated that it has already had about a "$400 million" impact on his airline.

“Fuel prices have increased rapidly over the last few weeks,” Isom said at the JP Morgan Industrials Conference 2026 via The Street. “It has only been seven weeks since we reported earnings. What we have seen since that time is about a $400 million USD impact in terms of our first-quarter expenses.”

For now, it's not clear how long the conflict will last and how long the oil prices will continue to remain high. Isom indicated that American Airlines will prepare accordingly.

“If this proves to be a long-term phenomenon, we know that appropriate steps will be taken to ensure we drive revenue performance to offset it,” Isom said.