United Airlines announced on Friday that it will reduce its scheduled flights by 5% during the second and third quarters, citing skyrocketing jet fuel prices fueled by the ongoing Iran war.
The move comes even as travel demand remains strong, allowing US airlines to raise fares.
Chief Executive Scott Kirby explained in a staff memo that the airline is preparing for oil prices to reach as high as $175 a barrel and remain above $100 through 2027.
"There's no point in burning cash in the near term on flying that just can't absorb these fuel costs," Kirby said.
He added that if prices stay at these levels, United's annual fuel bill could rise by roughly $11 billion—more than double the airline's record annual profit, Reuters reported.
Jet fuel costs have nearly doubled since late February, forcing carriers to adjust routes, reroute flights, and deal with airspace restrictions worldwide.
While high demand has allowed airlines to increase ticket prices, United is prioritizing financial caution over serving every passenger.
Kirby noted that the airline would rather leave some demand unmet than operate routes that lose money due to high fuel expenses.
United Airlines planning for oil to reach record $175/barrel, cutting 5% capacity https://t.co/SC3sCiQctU (via TAC/Intel)
— Jon Ostrower (@jonostrower) March 20, 2026
United Airlines Suspends Service to Tel Aviv and Dubai
The Chicago-based airline has already reduced flights on weaker midweek, Saturday, and overnight schedules.
In his memo, Kirby said United would cancel about three percentage points of off-peak flights in the second and third quarters, including red-eye services and less busy midweek routes.
According to NTD, another one point of capacity will be removed at Chicago O'Hare, and service to Tel Aviv and Dubai will remain suspended, totaling roughly a 5% reduction in the year's planned capacity.
Kirby emphasized that the full schedule is expected to return this fall.
Despite the cuts, passenger demand remains robust. Kirby highlighted that United's 10 highest-revenue weeks were all recorded in the past 10 weeks.
Airlines such as Delta and American have also leveraged this demand to implement fare hikes to offset rising fuel costs.
"While demand is strong, we still need to be cautious about flying routes that could lose money at current fuel prices," Kirby said, reinforcing the company's focus on financial prudence over simply filling every seat.
Originally published on vcpost.com
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