TORONTO — The price of jet fuel has been edging down from its dizzying heights but reports point to a holding pattern for high airfares.

The Financial Times and European Business Magazine liken the situation to a stand-off, as airlines maintain airfare levels even though the cost of jet fuel decreases. From a high of US$1,900 per ton in early April, European jet fuel prices are now hovering around $1,300 per ton.

That’s still up significantly from $795 per ton before the war with Iran broke out. Since many airlines hedge their fuel purchases, some scored depending on their locked-in rate, and some didn’t.

Airlines are also wary of lowering fares lest they set off a price war, driving down prices at a time when carriers are doing everything they can to recoup their jet fuel cost losses. IATA has said the jet fuel bill for the world’s carriers could be 40% higher in 2026 vs. 2025, from US$252 billion last year to $350 billion this year.

Demand for air travel is also still high, despite the increased fares and fuel surcharges. And with capacity trims, air seat supply has dropped.

Recent quarterly results show the impact of this year’s higher fuel costs. IAG, parent company of British Airways, Iberia, Aer Lingus and more, reported a 23% increase in its fuel and emissions bill for Q2. Lufthansa Group reported a 40% year-over-year increase in fuel costs for Q2. Air France-KLM says its year-over-year jet fuel headwind for 2026 vs. 2025 could total US$1.9 billion. Air Canada’s Q2 results last week included a 49% YOY increase in jet fuel expenses.