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2h ago

United Cuts 5% of Flights as Jet-Fuel Shock From Gulf Conflict Lifts Fares Worldwide

Governments are moving to ease supply strains through a temporary waiver to buy Iranian oil at sea.

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Members from Kataib Hezbollah attend the funeral of their colleagues who were killed in a U.S. airstrike in Qaim province, according to their statement, in Najaf, Iraq, Thursday, March 19, 2026. (AP Photo/Anmar Khalil)
People take shelter in an Underground tunnel as air raid sirens signal a warning of incoming Iranian missiles in Jerusalem, Thursday, March 19, 2026. (AP Photo/Ohad Zwigenberg)
A United Airlines 767-300ER is seen at a gate with the Manhattan skyline in the background at Newark Liberty International Airport in Newark, New Jersey, on March 18, 2026. US airport security officers missed their first full paycheck on March 13 as a partial funding shutdown of the government approached the one-month mark, with no breakthrough in a congressional standoff that is beginning to disrupt travel across the country. The lapse in funding is forcing thousands of Transportation Security Administration (TSA) staff to work without pay as spring travel picks up, raising fears of staffing shortages, longer security lines and flight delays. (Photo by kena betancur / AFP via Getty Images)

Overview

  • United will trim roughly 5% of planned capacity in Q2 and Q3 by axing red-eyes and low-traffic midweek flights, reducing flying at Chicago O’Hare, and keeping Tel Aviv and Dubai suspended, with plans to restore the full schedule in the fall.
  • CEO Scott Kirby told employees jet fuel has more than doubled in three weeks, warned a prolonged spike could add about $11 billion to annual fuel costs, and said United is planning for oil to reach $175 a barrel and stay above $100 through 2027 while demand remains exceptionally strong.
  • IATA has warned global airfares could climb about 8–9% if fuel stays elevated, with Chinese carriers including China Eastern, China Southern and Spring Airlines raising prices or surcharges, such as Spring’s increase of up to 180 yuan on regional routes.
  • European pressures are mounting as jet-fuel prices hit record levels, SAS scales back flights due to soaring costs, and officials caution that a prolonged squeeze through the Strait of Hormuz could risk shortages.
  • The U.S. Treasury temporarily authorized purchases of Iranian oil stranded at sea to relieve supply stress as disruptions around the Strait of Hormuz push energy benchmarks higher, with Brent recently holding above $108 per barrel.