Airline costs remain a concern for travelers, but there’s also new route news and other options for clients seeking a more private airport experience.
Here’s what’s happening across the industry this week:
Don’t Expect Airfares to Fall Anytime Soon
Lower fuel prices may not translate into cheaper airline tickets. American Airlines CFO Devon May told the Financial Times that fares are likely to remain near current levels even if fuel costs ease. If fuel prices climb further, airlines will look to raise fares to offset the increase.
Jet fuel prices have nearly doubled since the U.S.-Iran war began in February, putting pressure on airline profits despite strong travel demand. American, United and Southwest all lowered their full-year financial outlooks this week, citing higher fuel expenses.
American expects to pay about $4.70 per gallon for fuel in the fourth quarter, nearly twice what it paid during the same period last year. The airline estimates that fuel costs will add $2.8 billion to its expenses compared with a year ago.
The bottom line? Don’t count on lower airfares to deliver budget relief for your clients. Booking early, comparing routing options and building flexibility for your clients’ airfare budgets remain important as carriers contend with rising operating costs.
United Adds Three Domestic Routes
United Airlines is expanding its domestic network with three new routes from San Francisco, all launching March 28, 2027.
The airline will begin service to Charleston, South Carolina; Hartford, Connecticut; and Oklahoma City. The Charleston route will operate seasonally through Nov. 30, 2027, while flights to Hartford and Oklahoma City will run year-round.
United also confirmed schedules for three previously announced routes being launched in partnership with Air Canada. Seasonal service from Denver to Ottawa will operate daily from April 29 through Oct. 31, 2027. Denver–Quebec City flights will run on Saturdays from May 29 through Oct. 30, while Newark–St. John’s, Newfoundland, service will operate on Saturdays from June 24 through Sept. 7.
In addition, United will launch once-weekly Saturday service from Chicago O’Hare to Bermuda on April 3, 2027. The sole airport of the British territory in the Atlantic Ocean, L.F. Wade International, currently has no other nonstop service to Chicago.
Dulles Plans a VIP Terminal for Premium Travelers
Washington Dulles International Airport is moving ahead with plans for a 37,000-square-foot VIP terminal designed to give commercial airline passengers a more private, personalized airport experience.
The Metropolitan Washington Airports Authority selected daa International to develop, lease and operate the facility, which will be separate from both the main terminal and private jet operations. The 1.2-acre site will be located near the airport’s cargo buildings.
Planned amenities include a dedicated entrance and parking area, private security screening, separate suites and lounges, personalized check-in and baggage handling, and premium vehicle transportation directly to gates and aircraft.
Daa International is expected to develop the terminal over 30 months and then manage it under an initial 20-year operating agreement. Pricing and an opening date have not yet been announced.
DFW Opens Four New Gates in Terminal A
Dallas/Fort Worth International Airport has opened four new gates as part of a Terminal A expansion that will add capacity and improve the passenger experience at one of the country’s busiest hubs.
American Airlines began operating from gates A10, A11, A13 and A15 this month. The larger project will add a 140,000-square-foot extension, known as the Pier, with 10 new gates in total.
The expanded area features wider walkways to improve passenger flow, higher ceilings, larger windows, new concessions, updated restrooms and other passenger amenities. The full expansion is expected to open in time for the holiday travel season.
