JETS ▼ -2.3% - U.S. Global Jets ETF $JETS Airline executives warn soaring jet fuel costs from the Iran war could force years of higher fares, reduced growth and smaller fleets, with inflation threatening to weaken travel demand. * Passenger demand: Global bookings reached 2.3 billion in the first half of 2026, up 1%, despite double-digit fare increases. Delta ($DAL) reported little demand decline after raising prices an average of 20%. * Fuel costs: Airlines expect elevated prices to persist as existing fuel hedges expire, forcing further fare increases. TAP Air Portugal's CEO warned of a difficult three to five years. * Inflation risks: Executives fear higher living costs will eventually reduce travel demand, leaving airlines unable to cut fares without worsening already thin margins. * Growth plans: Carriers are preparing to scale back expansion, retire older fuel-intensive aircraft and reconsider spending on new planes versus AI technology. 18-OCT-2026 09:31 AM ET