United Airlines hiking fares 15-20% on jet fuel spike
NEW YORK, United States (AFP) — United Airlines has implemented broad-based fare hikes of 15 to 20 per cent as it seeks to offset the surge in gasoline prices while protecting profits, executives said Wednesday.
The big United States (US) carrier, which has also trimmed its 2026 flying capacity by five per cent, aims to recover 100 per cent of the added costs from the jet fuel price spike due to the Middle East war.
Chief Executive Scott Kirby described oil prices as “incredibly volatile” but said the company’s plan is based on the assumption that “fuel may remain higher for longer”.
While the airline has yet to see pullback from customers due to high fares, United may cut back additional flights in 2027 if demand ebbs, Kirby said.
United on Tuesday reported higher first-quarter profits but lowered its full-year profit forecast due to jet fuel costs. United expects fuel prices to average US$4.30 per gallon in the second quarter, up 55 per cent from the average in the first quarter.
Other airlines have also announced fare increases and capacity curtailments in response to the surge in oil prices since the US-Israel siege on Iran launched on February 28.
The head of the International Air Transport Association on April 17 called on authorities to put “well-coordinated plans in place” in case of jet fuel rationing.
Worries about jet fuel availability are more acute in Asia and Europe compared with the United States, said United Chief Financial Officer Michael Leskinen.
“We don’t see a lack of availability being an issue at all in the US. It’s a price issue,” Leskinen said.
“However, even in Europe and Asia, as we sit here today, we think it’s a price issue not an availability issue,” said Leskinen adding that “spot outages” could happen in Europe and Asia if the conflict drags on.