The CEO of American Airlines is forecasting increased ticket fees should oil prices continue remain high, Reuters reported Sunday.
“If it becomes clear this is the new normal you would see over time less capacity and growth in the industry and therefore higher prices, but I don’t think that’s going to happen in the near term,” said American Airlines CEO Doug Parker, according to the news service.
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Parker’s remarks come after prices for U.S. oil last month hit their highest mark in four years, The Wall Street Journal reported. Oil reached $70 per gallon in May for the first time since 2014.
According to The Guardian, prices spiked following President Trump’s announcement that the U.S. would withdraw from the Obama-era Iran nuclear deal in May.
At the time, Reuters reported that Treasury Secretary Steven Mnuchin said he did not expect a significant rise in oil prices because, he said, “different parties … would be willing to increase oil supply to offset this.”
The comments also come as the cost of gas at the pump has increased for American motorists.
In April, the U.S. Energy Information Administration predicted gas prices in the summer would be at their highest levels in four years, partially due to the price of crude oil.