Overview
- United will trim roughly three points of off-peak flying, reduce about one point at Chicago O’Hare, and keep Tel Aviv and Dubai suspended, totaling about a five‑point cut for Q2–Q3 with a plan to restore the full schedule in the fall.
- CEO Scott Kirby told staff United is modeling oil at $175 a barrel with prices staying above $100 through late 2027, warning current levels imply about $11 billion in additional annual fuel expense as jet fuel prices have roughly doubled in three weeks.
- Despite cuts, United says it will avoid furloughs and keep aircraft deliveries on track, citing record demand with the past 10 weeks marking its strongest booked revenue weeks.
- Airlines are passing through higher costs, with recent booked fares up 15%–20% at United and IATA estimating global ticket prices could rise about 8%–9% if fuel stays elevated; carriers from Europe to China have announced increases or surcharges, and SAS has canceled flights.
- U.S. airlines face greater exposure because most lack fuel hedges, prompting contingency moves across the sector, while the U.S. government has temporarily allowed purchases of Iranian oil stranded at sea in an effort to ease supply pressures.