Despite the recent surge in gas prices, jet fuel prices have doubled in the past two months, despite modest increases in air fares. However, this could change due to the increasing cost of doing business. Airlines are finding other ways to pass the cost onto consumers and reduce demand. JetBlue has announced a $10 increase in most baggage fees due to "rising operating costs," and other airlines are expected to follow suit. Airlines also plan to cut about 5% of its flight capacity over the next six months and reduce flights with lower fares. The company estimates that if fuel prices continue at the current level, it will cost the company an extra $11 billion dollars this year. However airlines cannot simply raise fares to offset increased costs like fuel. Despite this, demand for air travel remains strong, which could allow airlines to raise fares even higher.