Why airfare is likely to remain high

Airfares in the United States rose sharply in June, and airline executives say prices are likely to stay elevated for the rest of the year. Federal data showed fares were up 26.5% from a year earlier, while airlines said demand has remained strong even after they raised prices. The increase comes as carriers face higher fuel expenses tied to the conflict involving Iran, along with rising labor, maintenance and airport costs. United and American each said they expect fuel bills to be about $6 billion higher than previously planned or than last year, and airlines are passing some of those costs on to travelers. Big U.S. airlines have also gained market share as smaller competitors struggle. Spirit Airlines shut down in May, removing seats from the market, while some lowcost carriers have slowed growth. Industry executives said the coming months, after the summer travel peak, will help show how much more price pressure consumers are willing to absorb.