United Airlines has implemented fare increases of 15 to 20 percent across the board, responding to a sharp spike in jet fuel prices triggered by the ongoing conflict in the Middle East. The carrier also reduced its flight capacity for 2026 by 5 percent, aiming to fully recover the added fuel costs without sacrificing profitability.
CEO Scott Kirby described the oil market as "incredibly volatile," noting that the company's strategy assumes fuel prices could "remain higher for longer." The airline has not yet seen a drop in demand despite the higher fares, but Kirby warned that further capacity cuts could come in 2027 if traveler numbers decline.
United reported stronger first-quarter profits this week but lowered its full-year forecast due to rising fuel expenses. The airline expects jet fuel to average $4.30 per gallon in the second quarter, a 55 percent jump from the first quarter.
Other carriers are following suit with similar fare hikes and capacity reductions. The International Air Transport Association urged governments last week to prepare for potential jet fuel rationing. While United's CFO Michael Leskinen said supply shortages are unlikely in the U.S., he acknowledged that "spot outages" could occur in Europe and Asia if the conflict persists.