Flying Out of the U.S. Now Costs 50% More

Summary

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WSJ What’s News – "Flying Out of the U.S. Now Costs 50% More"

Date: May 5, 2026
Host: Daniel Bach

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Episode Overview

This episode of WSJ What’s News delivers crucial updates on surging U.S. airline fares, the escalating U.S.-Iran conflict and its impact on global shipping and oil prices, White House moves to regulate AI, mortgage foreclosures, and the realities of intergenerational wealth transfer. The show weaves together breaking news and expert analysis, providing listeners with a brisk yet thorough summary of the economic, political, and technological forces shaping markets and American life.

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Key Discussion Points & Insights

1. U.S. Airfares Soar Amid Iran Conflict

• Impact of Iran Conflict:

  • The ongoing standoff between the U.S. and Iran in the Strait of Hormuz is heightening geopolitical tensions.
  • Military engagements are disrupting commercial shipping, leading to higher oil prices.

• Surge in Airline Ticket Prices:

  • Domestic U.S. airfare rose 24% from January to April 2026.
  • International flights departing the U.S. are up 50% year-over-year.
    “The average price of a domestic airline ticket in the U.S. increased 24% between early January and 20 April, and prices for international flights departing the U.S. are up 50% compared to last year.” – Daniel Bach [02:21]
  • Discussion of a forthcoming special episode on how U.S. oil companies are adapting to "the crude crunch."

2. U.S.-Iran Tensions & Military Strategy

• Current Standoff:
  • Tehran has fired at U.S. warships; President Trump is deliberating military versus diplomatic options.
  • Trump’s stance:
    “One way or the other, we win… We either make the right deal or we win very easily. From the military standpoint, we’ve already won that.” – President Trump (audio clip) [01:48]
  • Press conference scheduled with Pentagon officials to outline steps forward.

3. AI: New Security Risks & Government Oversight

• Potential Regulatory Shift:

  • White House is considering government oversight for high-risk AI models, specifically regarding cybersecurity threats.

• Anthropic’s Mythos Model:

  • The new model “can identify cybersecurity vulnerabilities at a level that AI tools haven’t before,” raising fears it could be misused by bad actors.
    “This model from Anthropic is able to identify cybersecurity vulnerabilities at a level that AI tools haven’t before. And the fear is that bad actors could use it to figure out how to hack into all kinds of systems and cause all sorts of disruptions.” – Sam Schechner [04:31]
  • Access is limited to about 50 critical infrastructure organizations in the U.S., including Google and government entities.

• Policy Dynamics:

  • The administration is revisiting regulatory structures previously rolled back by the Trump administration.
    “There are national security implications to some of these new AI models and there are voices... saying, OK, the US should get a handle on these potential issues before something potentially devastating happens.” – Sam Schechner [05:51]
  • Ongoing tension between a laissez-faire approach and national security demands.
  • Anthropic and the government have an uneasy relationship, especially regarding Pentagon contracts.
    “Anthropic and the Trump administration have been feuding for quite some time... That fight is ongoing and that sort of complicated things.” – Sam Schechner [06:26]

4. Market Highlights

• Tech & Media Earnings:
  • AMD (Advanced Micro Devices) to release earnings with investors focused on AI chip demand.
  • Palantir’s revenue surged 85%, propelled by U.S. military demand but tempered by AI competition.
  • Paramount’s strong quarter, with streaming offsetting legacy declines; ongoing acquisition of Warner Brothers Discovery.

5. Foreclosures Rise with Tighter Subsidy Rules

• Policy Shift:
  • The Trump administration ended pandemic-era mortgage assistance, originally from the Biden era. “The Trump administration scrapped it because it was only ever supposed to be a temporary thing. ... The new rules are much tighter.” – Carol Ryan [09:22]
  • Assistance for distressed homeowners now limited to once every two years.
  • The end of subsidies is “normalizing” foreclosure levels, but also highlights the unaffordability of U.S. housing. “Tens of thousands of distressed borrowers have built up in the system. But it's also definitely a story about how unaffordable housing has become in America.” – Carol Ryan [09:53]

6. Intergenerational Wealth Transfer: Delayed

• Wealth Remains with Older Americans:
  • Adults 55+ hold $110 trillion in wealth—largely in long-held assets like homes, stocks, and businesses. “People 55 and older are sitting on $110 trillion of wealth. That's a huge force in the economy in all sorts of different ways.” – Rachel Ensign [11:10]
  • Millennials hoping for a ‘great wealth transfer’ will have to wait. “That’s something that... will eventually happen... but it is not happening anytime in the absolutely near future.” – Rachel Ensign [10:40]
  • Baby boomers and Gen Xers are parceling out money in small doses and spending on longevity and travel.
  • Gen X is projected to inherit the most over the next 12 years.

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Notable Quotes & Memorable Moments

• On U.S.-Iran Tensions:
  “One way or the other, we win. We either make the right deal or we win very easily. From the military standpoint, we’ve already won that.” – President Trump (audio clip) [01:48]

• On Airfare Increases:
  “Prices for international flights departing the U.S. are up 50% compared to last year.” – Daniel Bach [02:28]

• On AI Security Risks:
  “The fear is that bad actors could use [Anthropic’s Mythos] to figure out how to hack into all kinds of systems and cause all sorts of disruptions.” – Sam Schechner [04:31]

• On Foreclosure Policy:
  “The new rules are much tighter. There is some help available... but homeowners can only get that help once every two years now.” – Carol Ryan [09:34]

• On Delayed Inheritance:
  “The idea that millennials going to be getting a big windfall... is not happening anytime in the absolutely near future.” – Rachel Ensign [10:40]

• On Wealth Concentration:
  “People 55 and older are sitting on $110 trillion of wealth.” – Rachel Ensign [11:10]

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Important Timestamps

• U.S.-Iran conflict and airfares — [01:04] to [02:33]
• AI regulation and Anthropic’s Mythos — [03:56] to [07:32]
• Morgan Stanley & finra probe, Foreclosures — [08:17] to [10:04]
• Millennials, inheritance, and wealth transfer — [10:40] to [11:42]

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Tone and Style

The episode maintains WSJ’s signature brisk, factual, and engaging journalistic tone, balancing data-heavy analysis with accessible context and practical implications for listeners. Host Daniel Bach guides the episode with clear transitions, and expert guests provide deeper dives into the most urgent financial and technology risks facing the U.S. today.

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Transcript

[Laura Thoreau]

I'm Laura Thoreau, managing director with Baird Private Wealth Management. For so many of us, life is busy between balancing family, career and community. Finding the time and focus to keep your financial plans on track can be a challenge. At Baird, we understand our financial advisors will partner with you to create a plan that's uniquely yours, one that gives you peace of mind and confidence so you can focus on what matters most.

[Daniel Bach]

Discover the baird [e-mail] WSJ airfares for US flights skyrocket as the Iran war takes its toll. Plus, the White House considers whether new AI models pose a national security risk. And tough luck if you're a millennial waiting for a big payout from mom and pop.

[Rachel Ensign]

Americans over 55 control most wealth. And you know, a lot of those folks could have decades left to live. So this idea that there's going to be this massive windfall for younger Americans is something that is really happening in Mass yet.

[Daniel Bach]

It's Tuesday, May 5th. I'm Daniel Bach for the Wall Street Journal, filling in for Luke Vargas. And here is the AM Edition of what's news, the top headlines and business stories moving your world Today, the US And Iran are teetering on the edge of a new, dangerous phase of the war, with both countries returning to military force to try to break the standoff in the Strait of Hormuz. Tehran has fired at US Warships trying to revive commercial shipping in the strait, testing President Trump's desire to end the U.S. officials say. TRUMP has been weighing two competing impulses for days, whether to order a new round of airstrikes to punish Iran for failing to abandon its nuclear ambitions or leaning into a diplomatic solution. Here he is speaking to conservative radio host Hugh Hewitt. Yesterday, one way or the other, we win.

[Carol Ryan]

We either make the right deal or

[Daniel Bach]

we win very easily. From the military standpoint, we've already won that. Trump later said that he planned to stick with the status quo for now. He's called a press conference for senior Pentagon officials today, leaving giving it up to Defense Secretary Pete Hegseth and the chairman of the Joint Chiefs of Staff to outline the administration's next steps. That's scheduled for 8am Eastern. Meanwhile, a rise in fuel prices driven by the Iran war has piled pressure on US Airlines to increase fares. According to Kayak, the average price of a domestic airline ticket in the US increased 24% between early January and 20 April, and prices for international flights departing the US are up 50% compared to last year. But the rise in oil prices may not be bad for everyone. Later today, we've got a special bonus episode on how U.S. oil companies are navigating the crude crunch. The latest what's news in earnings will be in your feed at midday. And it is another busy earnings day with all eyes on chipmaker Advanced Micro Devices, which releases its quarterly report this afternoon. Investors will be watching whether AMD can continue to benefit from tech companies looking to diversify their AI chip suppliers. It comes after data analytics firm Palantir said its quarterly revenue surged 85% year over year to more than $1.6 billion. The results were driven by strong US military demand and a rapidly growing enterprise business for its data crunching software. Still on the earnings call, executives tried to play down concerns about AI competition that has led to its stock sinking 13% this year. And shares in Paramount rallied off hours after beating analysts estimates for quarterly revenue. Streaming and studio growth offset declines in income from TV advertising and affiliates. The Currently finalizing its blockbuster acquisition of Warner Brothers Discovery, the White House is considering a new government review process for AI tools deemed to pose cybersecurity risks. For more on this, we're joined by Journal tech reporter Sam Schechner. Sam, what is the aim of this oversight and what would that look like?

[Sam Schechner]

Well, the goal from the White House is to protect consumers and businesses specifically from cyber attacks and other disruptions that could be caused by AI that's released without proper safeguards. The way it will work remains to be seen. The White House is considering an executive order that would formalize government oversight and create some standards for the most powerful AI models. We'll have to see what they actually come up with and announce.

[Daniel Bach]

And is this a direct response to Anthropic's Mythos model?

[Sam Schechner]

Well, we know that Anthropic's model has caused shockwaves of concern in the U.S. government and in the private sector, both in the U.S. and overseas. This model from Anthropic is able to identify cybersecurity vulnerabilities at a level that AI tools haven't before. And the fear is that bad actors could use it to figure out how to hack into all kinds of systems and cause all sorts of disruptions. And so for that reason, Anthropic has only released IT to about 50 organizations involved in protecting critical infrastructure, all in the U.S. and we're talking about big companies like Google and also the US Government.

[Daniel Bach]

Now, some of this is sounding like the guardrails and oversight the Biden administration was trying to put in place, which led to pushback from AI and tech companies. The president has voices inside his administration that have pushed him more towards a hands off approach to AI. So why this change now?

[Sam Schechner]

Yeah, it really does seem a little bit like tiptoeing going back towards some of the regulations from the previous administration that Trump tore out when he took office canceling a Biden executive order on AI safety. And you know, the Trump administration has renamed what was called the AI Safety Institute into what's now called the center for AI Standards and Innovation. I think what's happening here is that there are national security implications to some of these new AI models and there are voices in the administration and voices in the private sector who are saying, okay, the US should get a handle on these potential issues before something potentially devastating happens.

[Daniel Bach]

We've heard about the Trump administration and Anthropic's battle. Tell us a little bit more about the AI companies working more closely with the government. How important would that be for the Trump administration?

[Sam Schechner]

Well, yeah, Anthropic and the Trump administration have been feuding for quite some time. That was over a fight with the Pentagon about how Anthropic models could be used. That fight is ongoing and that sort of complicated things. With the release of Mythos, Anthropic CEO actually met with White House officials to talk about how to handle the Mythos rollout. It's an interesting situation because on one hand you have this laissez faire approach to AI generally, but that's conflicting with some of the business and political imperatives to take on cybersecurity risk. The Trump administration appears to be wanting to regulate or put some standards on cybersecurity risks in AI. That doesn't necessarily mean they're walking back the approach to AI regulation more generally when it comes to other types of issues that might arise. You know, there are initiatives to try and regulate AI at the state level that the Trump administration has opposed, so we will have to see where that

[Daniel Bach]

nets out Journal tech reporter Sam Scheckner. Sam, thanks for your time.

[Sam Schechner]

Thanks so much for having me.

[Daniel Bach]

Coming up, foreclosures are rising in a sign of just how unaffordable US Housing has become. That story and more after the break.

[Laura Thoreau]

This episode is sponsored by Morgan Stanley's Thoughts on the Market. Today's financial markets move fast. Morgan Stanley moves faster with their daily podcast, Thoughts on the Market. Thoughts on the Market covers daily trends across the global investment landscape with actionable insights from Morgan Stanley's leading economists and strategists. And with most episodes under five minutes long, staying informed has never been easier. Listen and subscribe to thoughts on the market. Wherever you get your podcasts,

[Daniel Bach]

We're exclusively reporting that finra, the Financial Industry Regulatory Authority, has opened an inquiry into a Morgan Stanley investment banking program in Hungary. The program was launched in Budapest two years ago, recruiting bankers from across Europe, offering them a chance to one day work in the big leagues in New York or London. For the bank, it was a way to offshore low level jobs, typically done by well paid young investment bankers in the first years of their careers. The probe is in the early stages and started after a whistleblower said the bank violated rules meant to protect confidential information about clients and transactions from being mishandled. Morgan Stanley and Finra declined to comment. US Foreclosures have jumped after the Trump administration ended a generous Biden era subsidy. During the pandemic, homeowners with a federal mortgage who got into financial difficulty could apply for a partial claim to clear any unpaid balance on their mortgage. Some borrowers also got a loan modification to make their monthly payments more manageable. But as heard on the street columnist Carol Ryan explains, the Trump administration has now tightened the rules.

[Carol Ryan]

The Trump administration scrapped it because it was only ever supposed to be a temporary thing to help people during the pandemic. It was brought in by the Biden administration, and while most people who used it were in real distress, there are signs that some homeowners were abusing it. We found examples of people who claim nearly $100,000 over five years. The new rules are much tighter. There is some help available for people who are in arrears, but homeowners can only get that help once every two years now in one way, the housing market is getting back to normal. The subsidy kept foreclosure numbers artificially low for the last four or five years. So tens of thousands of distressed borrowers have built up in the system. But it's also definitely a story about how unaffordable housing has become in America.

[Daniel Bach]

And if you're worried about mortgage rates, inflation or the economy affecting your ability to own or buy a home, we'd like to hear from you. Send a voice memo to wnpodsj.com or or leave a voicemail with your name and location at 212-416-4328. We might use it on the show. And finally, as Americans live longer, younger generations are going to have to keep waiting for their inheritance. Economics reporter Rachel Ensign says baby boomers and older Gen Xers are hanging onto their assets longer.

[Rachel Ensign]

The idea that these big wealth firms have about the great wealth transfer, you know, this idea that millennials going to be getting a big windfall. That's something that you know will eventually happen. You know, no one lives forever, but it is not happening anytime in the absolutely near future.

[Daniel Bach]

While wealthy Americans are spending on longevity and travel and parceling out wealth in small doses to children and grandchildren, people 55 and older are sitting on $110 trillion of wealth.

[Rachel Ensign]

That's a huge force in the economy in all sorts of different ways. And it's largely happened because they own a bunch of stuff like stocks and privately held businesses that have increased a lot in value in the last few decades. So they've owned these things for a long time. They've owned houses for a long time, stocks for a long time. And time has been good for them financially.

[Daniel Bach]

Of course, no one has figured out how to live forever, so those assets will be handed over. Research firm Sorelli Associates says Gen X is set to inherit the most money of any group for the next 12 years. So millennials will just have to keep waiting. And that's it for what's news for this Tuesday morning. Today's show was produced by Hattie Moyer. Our supervising producer is Sandra Kilhoff. And I'm Daniel Bock for the Wall Street Journal. We'll be back tonight with a new show. Until then, thanks for listening.

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