United cuts flights as oil outlook darkens to 2027
United Airlines says it will reduce some flights over the coming months as it prepares for a prolonged period of high fuel prices linked to the conflict involving Iran.
In a memo to staff, Chief Executive Scott Kirby said the airline is planning for oil prices to remain above $100 a barrel until the end of 2027, with a potential peak of $175. At those levels, the company’s annual fuel costs could rise by about $11bn, News.Az reports, citing Reuters.
Airlines have faced a sharp increase in fuel expenses in recent weeks, with jet fuel prices nearly doubling since late February. The rise has been driven by disruption to energy markets and changes to global flight routes due to airspace restrictions.
United said it would cut around three percentage points of off-peak flying in the second and third quarters, targeting routes with weaker demand. Additional reductions from its Chicago O’Hare hub and the continued suspension of flights to Tel Aviv and Dubai will bring total capacity cuts to about five percent.
Despite higher costs, strong demand for travel has allowed airlines to increase ticket prices. Industry executives say this has helped offset some of the financial pressure from rising fuel bills.
United said recent bookings remain strong, with fare increases of up to 20% in some cases. Analysts suggest further price rises of between 5% and 7% may follow.
The airline also indicated it expects to restore its full schedule in the autumn, assuming conditions stabilise.
While scaling back in the short term, United said it would continue its longer-term expansion plans, including taking delivery of new aircraft. The company added it does not intend to cut jobs or delay investment, despite the challenging outlook.
By Faig Mahmudov
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