Airlines are trimming capacity and raising airfare to cope with surging jet fuel prices, driven by the Iran war and Strait of Hormuz disruptions, while travel demand remains resilient. The latest U.S. inflation data showed airfare rose 23.4% in August year-over-year, with Thanksgiving and Christmas fares up 31% and 23% respectively. However, Wall Street analysts have cut profit estimates for U.S. carriers, with American Airlines expecting a Q3 loss, as fuel costs continue to squeeze margins.