Airlines for America CEO Chris Sununu said U.S. airfares should largely stabilize after domestic fares rose about 20%, even as fuel costs remain elevated during the six-month U.S.-Iran war. Federal data showed airline fares increased 25.5% year over year in July and 2.2% from June. The Argus U.S. Jet Fuel Index stood at $3.82 per gallon on Aug. 28, while airlines paid an average $3.59 per gallon in June, down from $4.09 in May but still 62.1% above June 2025. June fuel spending reached $5.99 billion, up 60.6% from a year earlier. Sununu said carriers are absorbing much of the increase to remain competitive rather than passing the full burden to travelers. American Airlines reported an 83.3% increase in second-quarter fuel expense to $4.88 billion, while higher fares offset nearly half of the increase. Strong travel demand has helped support the industry, although the conflict's disruption of oil flows through the Strait of Hormuz keeps energy risks elevated. The Energy Information Administration said flows through the waterway fell to 4.9 million barrels per day in the second quarter from 21.6 million before the war. United Airlines CEO Scott Kirby has said fare increases in early 2027 should be gradual and smaller than this year's increases.