United Airlines' CEO, informed employees in a staff memo, oil prices to reach $175 per barrel 🛢 💸
Scott Kirby, United Airlines' CEO, informed employees in a staff memo that the airline is preparing for oil prices to reach $175 per barrel and remain above $100 per barrel until the end of 2027.
He emphasized that while the scenario may not fully materialize, planning for it carries little downside and ensures readiness for prolonged high fuel costs.
The war in Iran has triggered a fresh fuel shock, with jet fuel prices nearly doubling since late February, disrupting global flight patterns and increasing industry-wide expenses.
To mitigate the impact, United is cutting approximately 5% of its planned capacity in the second and third quarters of 2026, focusing on off-peak flying, certain routes from Chicago O’Hare, and suspended services to Tel Aviv and Dubai.
Despite these near-term cuts, Kirby stressed that United is not furloughing staff or delaying long-term investments. The airline will continue taking delivery of about 120 new aircraft in 2026, including 20 Boeing 787s, with another 130 aircraft scheduled by April 2028, maintaining its growth strategy.
Kirby also noted that strong travel demand has enabled fare increases, helping offset rising costs, and that United aims to fully absorb higher fuel expenses this year.