A major airline has issued a caution to passengers regarding the potential for an increase in ticket prices. United Airlines Holdings Inc.’s CEO, Scott Kirby, expressed concerns about a possible 20% surge in ticket prices if jet fuel costs remain high. Kirby mentioned in an interview with Bloomberg TV that such price hikes could result in reduced travel demand and consumer resistance. To mitigate the impact of soaring fuel prices, the airline has already trimmed 5% of its capacity on unprofitable routes.
This announcement follows United Airlines’ decision to cancel several routes due to escalating jet fuel expenses amid the US-Iran conflict. CEO Scott Kirby informed employees that the company is bracing for oil prices to reach as high as $175 per barrel. The Chicago-based carrier plans to cut five percent of its flights in the upcoming quarters from its extensive network of domestic and international routes.
Kirby mentioned that the company’s strategy assumes oil prices will remain elevated until the end of 2027. Despite hoping for a less severe scenario, United Airlines is preparing for potential challenges ahead. The ongoing conflict has already led to flight suspensions to Tel Aviv and Dubai, with plans to resume full operations in the fall.
In a similar move, British Airways recently announced the cancellation of flights to Amman, Bahrain, Dubai, and Tel Aviv until May 31, and flights to Doha until April 30. The airline attributed these cancellations to the unstable situation in the Middle East and regional airspace uncertainty.
