United Airlines to cut more flights as it eyes oil above $100 through 2027

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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 US carriers to raise fares.

Chief Executive Scott Kirby said in a staff memo 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.

The war in Iran has pushed airlines into a fresh fuel shock. Jet fuel prices have nearly doubled since late February, raising costs across the industry and disrupting global flying patterns through reroutings and airspace restrictions.

Still, US carriers have so far been able to push through fare increases, helped by resilient travel demand and tighter capacity.

“There’s a good chance it won’t be that bad,” Kirby wrote of the airline’s fuel assumptions. “But…there isn’t much downside for us to preparing for that outcome.”

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