- United Airlines cuts 5 percent flights amid rising fuel costs.
- CEO warns oil could reach $175 per barrel.
- Demand remains strong, airline plans fare increases to offset costs.
- Global airlines reduce capacity, thousands of flights cancelled.
United Airlines announced on Friday it would cut approximately 5 percent of its scheduled flights for the second and third quarters of 2026, as CEO Scott Kirby told employees in a staff memo that jet fuel prices have more than doubled in three weeks and that the airline is now planning for oil to reach $175 a barrel and remain above $100 through the end of 2027.
The cuts target off-peak routes red-eye flights and Tuesday, Wednesday and Saturday services during the second and third quarters, with a one-point capacity reduction at Chicago O'Hare once an FAA process concludes. Tel Aviv and Dubai services remain suspended. Kirby said the plan is to restore the full schedule in autumn and that nothing changes about longer-term aircraft delivery plans or 2027 capacity.
Kirby said demand remains at record highs the ten biggest booked revenue weeks in United's history were the last ten weeks giving the airline room to raise fares and partially offset the fuel cost surge. Jet fuel has risen more than 60 percent from pre-war levels, with a Boeing 737-800 that cost $17,000 to fill the day before the February 28 strikes costing more than $27,000 by March 5, according to Argus pricing data.
United's cuts are part of a broader industry-wide response. SAS cancelled more than 1,000 flights in April. Air New Zealand cut 5 percent of capacity affecting 44,000 passengers. Qantas, Cathay Pacific and Thai Airways have all raised fares. Wizz Air suspended services to Dubai, Abu Dhabi, Amman and Jeddah through September.
The Association of Flight Attendants warned that airlines with the thinnest margins citing Frontier and Spirit face the gravest risk. Nearly 50,000 flights have been cancelled globally since hostilities began, according to aviation analytics firm Cirium.
