economy
United Airlines to cut more flights as it eyes oil above $100 through 2027
Chief Executive Scott Kirby says United's annual fuel bill would rise by about $11 billion if oil prices stay above $100 a barrel through next year.
TL;DR
- United Airlines is cutting approximately 5% of its planned capacity for the year, focusing on off-peak flights and periods with weaker demand.
- The airline is preparing for prolonged high jet fuel prices, with CEO Scott Kirby predicting oil could reach $175 a barrel and stay above $100 until the end of 2027.
- These fuel price projections could increase United's annual fuel bill by $11 billion, more than double its profit from its best year.
- Despite the cuts and high fuel costs, strong travel demand is allowing U.S. carriers, including United, to raise fares.
- United plans to restore its full schedule in the fall and is not altering its broader growth strategy, including aircraft deliveries and avoiding staff furloughs.