United Airlines plans to cut less popular flights, including weekday and night flights, until the fall in response to a sharp increase in jet fuel prices caused by the Iran war, Chief Executive Officer Scott Kirby said in an internal message to employees on Friday.
The price of jet fuel “has doubled in the last three weeks,” Kirby said. In the United States, it reached $4.56 a gallon on Friday, down from $2.50 on Feb. 27, before the war began, according to Argus Media data.
Scott Kirby said in an internal message to employees on Friday that they are preparing for a scenario in which oil prices rise to $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 double the profit it made in its “best year in history,” he said.
Experts warn that these additional costs will be passed on to passengers in the coming weeks and months.
Earlier this week, major US airlines United, Delta and American said demand for flight bookings remained strong.
