United Airlines is cutting more unprofitable flights over the next two quarters as it prepares for a prolonged period of high jet fuel prices due to the Iran war, even as strong travel demand has allowed U.S. carriers to raise fares.
Chief Executive Scott Kirby said in a staff memo on Friday the airline is preparing for oil to rise as high as $175 a barrel and remain above $100 until the end of 2027. At those levels, United’s annual fuel bill would rise by about $11 billion, more than twice the profit it earned in its “best year ever,” he said.
In the staff memo, shared by the company, Kirby said the airline would cancel about three percentage points of off-peak flying in the second and third quarters, targeting routes and periods with weaker demand.
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United Airlines is cutting more unprofitable flights over the next two quarters as it prepares for a prolonged period of high jet fuel prices due to the Iran war, even as strong travel demand has allowed U.S. carriers to raise fares.
Chief Executive Scott Kirby said in a staff memo on Friday the airline is preparing for oil to rise as high as $175 a barrel and remain above $100 until the end of 2027. At those levels, United’s annual fuel bill would rise by about $11 billion, more than twice the profit it earned in its “best year ever,” he said.
In the staff memo, shared by the company, Kirby said the airline would cancel about three percentage points of off-peak flying in the second and third quarters, targeting routes and periods with weaker demand.