United Airlines Cuts Flights Amid High Fuel Prices
United Airlines will reduce unprofitable flights over the next two quarters due to rising fuel costs driven by the Iran war.
CEO Scott Kirby stated that oil prices could reach as high as $175 per barrel and remain above $100 until the end of 2027. Under this scenario, the airline’s annual fuel costs could increase by around $11 billion.
As part of the plan:
•Around 3% of off-peak flights will be cut
•Capacity at Chicago O’Hare will be reduced by about 1%
•Services to Tel Aviv and Dubai will remain suspended
•Total capacity reduction will reach approximately 5%
Despite these measures, strong travel demand continues to support fare increases. United reported a 15–20% rise in ticket prices in recent bookings.
U.S. carriers remain more exposed due to the lack of fuel hedging, while low-cost airlines face additional pressure from rising costs.
Although reducing capacity in the short term, the airline will continue its growth strategy, planning to take delivery of 120 new aircraft this year and not considering staff cuts or delaying investments.
