United Airlines plans to reduce near-term capacity by around 5% as it responds to sharply rising fuel prices, with chief executive Scott Kirby warning that oil could remain elevated for an extended period.
In a staff memo on 20 March, Kirby said the airline will cut approximately three percentage points of off-peak flying in the second and third quarters, while the suspension of Tel Aviv and Dubai services accounts for around another point of capacity. United currently expects to restore the full schedule in the autumn.
Kirby said jet fuel prices have more than doubled over the past three weeks and warned the airline is preparing for a scenario in which oil could reach as high as $175 per barrel and remain above $100 through 2027.
“At current levels, it would mean an extra $11 billion in annual expense just for jet fuel,” Kirby said, noting that this exceeds the airline’s profit in its best year.
Despite the cost pressure, Kirby said demand remains strong, with United recording its 10 largest booked revenue weeks on record over the past 10 weeks, supported by customers booking ahead of expected fare increases.
United said its longer-term fleet and growth plans remain unchanged, including deliveries of around 120 aircraft and continued investment in its network.