Trending Now - United Airlines Slashes Flight Schedule Due to Soaring Fuel Prices
WHO:
Scott Kirby, Chief Executive Officer of United Airlines Holdings Inc.
United Airlines (UAL)
WHAT:
Scott Kirby stated that if jet fuel prices remain high, United Airlines' annual fuel expenses could exceed $20 billion in 2026, up from $11.4 billion in 2025.
Kirby noted that jet fuel prices have more than doubled in the last three weeks.
United Airlines plans to take delivery of about 120 new aircraft in 2026.
Kirby emphasized that United will avoid furloughing employees, deferring aircraft orders, downgrading to regional jets, or going through cost-cutting exercises.
Scott Kirby stated that oil prices could rise as high as $175 a barrel and remain above $100 until the end of 2027.
United Airlines is cutting about three percentage points of off-peak flying in the second and third quarters, targeting routes and periods with weaker demand.
United will also pull about one percentage point of capacity from Chicago O'Hare and keep service to Tel Aviv and Dubai suspended.
Kirby noted that the airline's annual fuel bill would rise by about $11 billion, which is more than twice the profit it earned in its "best year ever."
United Airlines has reported that the first 10 weeks of 2026 were the strongest booking weeks in its history.
Airlines have already implemented two fare increases of about $10 each way, with potential for a further 5% to 7% rise in fares.
Kirby mentioned that fares booked over the past week had risen 15% to 20%.
United Airlines will cancel about 5% of its planned flights in the short term.
If jet fuel prices remain high, it would result in an additional $11 billion in annual expenses for United Airlines.
The airline plans to restore its full flight schedule in the fall of 2026.
WHERE:
United Airlines operates in various locations, but specific locations are not mentioned in the articles.
WHEN:
The announcement regarding flight cancellations was made on March 20th, 2026.
The full flight schedule is expected to be restored in the fall of 2026.
WHY:
The U.S.-Israel war on Iran has caused significant disruptions to the airline industry, impacting air traffic and fuel prices.
The decision to cut flights is due to surging jet fuel prices, which are influenced by the Middle East conflict.
HOW:
Kirby communicated the airline's plans and strategies through a letter to employees posted on the company's website.
Scott Kirby communicated the information through a message to employees posted on the company's website.
(UPDATED March 22, 2026 01:35 UTC)
In a recent letter to employees, United Airlines CEO Scott Kirby warned that if jet fuel prices remain high, the airline's annual fuel expenses could soar to over $20 billion in 2026, a significant jump from $11.4 billion in 2025, as prices have more than doubled in just the last three weeks. He also confirmed that despite these challenges, United plans to take delivery of about 120 new aircraft this year and will avoid furloughing employees or making drastic cuts. The ongoing U.S.-Israel conflict with Iran has been a major factor contributing to these disruptions in the airline industry, affecting both air traffic and fuel costs.
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(UPDATED March 21, 2026 19:08 UTC)
In a significant update, United Airlines CEO Scott Kirby warned that oil prices could soar to $175 a barrel and remain above $100 until the end of 2027, leading to an annual fuel bill increase of about $11 billion. To adapt to these rising costs, United is cutting off-peak flying by three percentage points in the second and third quarters and suspending service to Tel Aviv and Dubai while also reducing capacity from Chicago O'Hare. Despite these challenges, Kirby noted that the first ten weeks of 2026 marked the strongest booking period in the airline's history, with fares booked over the past week rising by 15% to 20%.
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(UPDATED March 21, 2026 15:00 UTC)
United Airlines announced on March 20 that it will cancel about 5% of its planned flights in the short term due to surging jet fuel prices, which are being driven by the ongoing conflict in the Middle East. CEO Scott Kirby shared this information in a message to employees on the company's website, noting that if fuel prices remain high, the airline could face an additional $11 billion in annual expenses. United Airlines plans to restore its full flight schedule by the fall of 2026.