Robert Niles took to his website in early March to ask a question in a forum: “Anyone reconsidering travel plans?”
As the editor in chief of Theme Park Insider, Niles typically travels around the country and the world to attend park openings. But his trip to Abu Dhabi for the International Association of Amusement Parks and Attractions expo had been cancelled shortly after the war in Iran started. Then, as airfare prices started to rise, Niles thought of all the plans he had to see different attractions, especially the opening of the Nightflight expedition at Dollywood in Tennessee.
With domestic flights within the U.S and Europe to consider, Niles’ deliberations reflect a growing number of Americans weighing the costs of their summer vacation flights due high airfares, partially caused by the U.S-Israeli war against Iran.
Yet on the web forum, many people responded that they had no plans to cancel or change their trips. And economic data tells a similar story: Even as the war in Iran continues, fuel prices continue to spike, and inflation rises, Americans are still dedicated to their travel plans this summer.
“Americans have shown they still want to travel,” said Oak McCoy, associate professor of Economics at the University of New England. “But they are becoming more price-sensitive. The first response is usually substitution, not cancellation.”
Air travel has become more expensive amid the U.S-Israel War in Iran and consumers are paying the price for it. Airline fares were up 20.7% in April from a year earlier, according to the latest data from the Bureau of Labor Statistics. The average airfare for Apr. 13 domestically is $358 in 2026, compared to $303 for the same date last year, according to Kayak.com.
Airlines including Delta, United, and Southwest have all increased their first checked bag fee by $10 to $45 in response to increased operational costs and rising jet fuel.
“The war in the Middle East has driven an unprecedented spike in jet fuel, with prices roughly double what they were earlier in the year,” said Ed Bastian, Delta’s CEO, in response to questions from analysts this month on how the closure of oil shipping through the Strait of Hormuz is affecting fuel prices.
The low-budget airline company Spirit Airlines ceased operations on May 2nd. The company has long struggled with high debt, failed mergers, and manufacturing issues, but “recent geopolitical events resulted in a massive and sustained increase in fuel prices,” the company said in its bankruptcy filing. The loss of Spirit poses a larger threat to the travel industry. Without the competitive low prices Spirit offered, lower-income consumers who may not be able to afford to fly.
Higher prices are hitting at a difficult time for many consumers, as higher grocery costs and gas prices provide new strain for Americans as well. According to the University of Michigan consumer sentiment index, consumer sentiment ticked down to 48.2 this month, one of the lowest recorded, showing consumer unease surrounding spending. 30% of consumers cited President Trump’s tariffs and one-third mentioned gas prices, according to the report.
These factors pile on top of a cooler labor market after the post-pandemic boom and inflation that spiked to 3.8% in April. With no concrete timeline for the end of the war, consumers could face increased inflationary pressures that might change their outlook.
Still, Americans prioritize traveling and many of them are not ready to completely let go of their summer vacation plans. According to Numerator, 78% of Americans have vacations planned, compared to 61% from last year. People are budgeting more carefully and using travel sites such as Skyscanner to help them find the best flight deals.
“People trade down to cheaper alternatives before they give up travel altogether,” said McCoy. “That could mean shorter trips, less expensive hotels, traveling midweek, visiting family instead of resorts, or choosing destinations closer to home.”
Elliana Marlier, a 22 year-old professional dancer based in Chicago, is making the most of it.
“Airfare has definitely increased lately, which I’ve found makes spontaneous trips easier since I can go based off prices and not predetermined dates,” said Marlier. “Getting creative is a huge positive benefit from spontaneous trips.”
Tampa, Florida has become Marlier’s go-to trip for a quick getaway to visit friends. She also has plans to visit New York and drive to see family in Minnesota this summer. As someone with an airline-affiliated credit card, Marlier worries less about prices since she has travel miles saved up.
“I realized that I was missing out on traveling by being too frugal,” said Marlier. “It was a good lesson for me to reevaluate how I want to live my life and how I want to prioritize certain things in my budgeting!”
Marlier’s sentiments mirror those of other Americans still planning to travel this summer, but getting creative in the ways they can cut costs elsewhere. A survey by Talker Research for travel site CheapCarribean Vacations, found that 34% Americans are bringing snacks or groceries instead of dining out. Other examples include looking for free activities, travel deals, or staying with friends and family to save on lodging, according to the study.
“The nice thing about the travel industry is that there’s so many options out there,” said Niles. “If you take a little time to think about it and do some research, you can find something that matches your budget, or you can find something that you can make match your budget.”
High-income households especially, are driving travel spending, according to a May 2026 study from the Bank of America Institute. While only 10% of Americans are canceling a trip, the study found lower-income families likely have no travel plans. The trend fits into a larger pattern of the K-shaped economy, where wealthier Americans earn more and spend more, while poorer Americans struggle downwards, deepening the class divide.
Joe Esposito, Delta’s chief commercial officer said at an investors conference in March that the airline was focused on this demographic:
“We serve the top end of that K and probably the highest end of that K,” said Esposito. “That’s a group that wants to continue to invest and is, candidly, a bit immune to what goes on with geopolitical events.”
While Americans are set on their travel plans for now, that could change in the future.
“Americans may not cancel travel immediately,” said McCoy. “But if conflict-driven fuel costs stay high, we are likely to see a shift from the post-pandemic travel boom to a more restrained, price-sensitive travel market.”