Air freight costs surge as firms tackle stock delays

Ashley Morgan • August 18, 2026 • 2 min read

Air freight costs surge as retailers combat stock delays with expensive air cargo amid rising fuel prices and supply chain disruptions.

Retailers are turning to air freight to address inventory shortages, despite rising costs and persistent supply chain challenges.

Fuel prices keep air freight expensive

Jet fuel prices remain 46% above pre-2025 levels, as reported by the International Air Transport Association. The conflict in Iran caused the increase, and steady demand for air cargo—particularly for technology infrastructure—continues to support high rates.

Freight intelligence firm Xeneta predicts airlines will not reduce prices quickly. “It’s not in their interests to lower rates rapidly,” said Niall van de Wouw, the firm’s chief airfreight officer. While the market shows a year-over-year decline, shippers should not expect immediate relief.

Luxury brands pay premiums to restock shelves

Capri, owner of Michael Kors and Jimmy Choo, reported a 25% year-over-year decline in Michael Kors inventory. Port congestion in Asia delayed shipments, reducing full-price sales. Revenue dropped 7.1% last quarter as a result.

To expedite deliveries, Capri is selectively using air freight. “We are taking action to accelerate receipts where possible,” said Tyler Reddien, the company’s executive VP, CFO and COO. The added expense will pressure profit margins. The company now forecasts 2027 revenue at $3.4 billion, below earlier estimates.

CEO John Idol described the inventory shortage as temporary. “We know we’re going to get through it,” he stated. Capri is also collaborating with freight forwarders to secure faster ocean transport.

The approach focuses on limiting damage. Air freight provides a solution, though an expensive one.

Scrubs brand Figs turns to air freight after customs disruption

Figs, a medical apparel company, is relying on air freight to bypass a U.S. Customs and Border Protection withhold release order (WRO) that halted shipments from a Jordanian supplier. The decision is part of a broader effort to maintain stock of essential products.

“We’ve worked across teams to adapt and reduce the impact,” said CEO Trina Spear.

For brands with limited backup options, delays from a single supplier force quick action. Air freight offers a way to prevent empty shelves, even if it reduces profits.

Air cargo demand remains strong

Xeneta’s latest analysis indicates air freight rates will stay raised through the year. The conflict in Iran is only one factor. The push to expand AI data centers is also driving demand for fast, dependable shipping.

“Airlines will resist lowering rates as aggressively as they rose,” van de Wouw said. Retailers view air freight as a temporary measure rather than a sustainable solution.

Capri and Figs expect the costs to be justified once inventory stabilizes. However, with fuel prices holding steady and geopolitical risks unresolved, the financial burden continues to grow.