United Airlines Cuts Flights Amid Rising Fuel Prices

As the conflict in Iran escalates and oil prices rise, United Airlines has decided to scale back its flight operations. It becomes the first major airline in the U.S. to announce such reductions following widespread warnings throughout the industry.

In a memo to staff, CEO Scott Kirby mentioned that the airline would reduce capacity by about 5% by eliminating routes that are less profitable. He expressed that the company is gearing up for a lengthy period of elevated fuel prices, projecting oil to hit $175 per barrel, with an expectation it could surpass $100 by the end of 2027.

“The reality is that jet fuel prices have more than doubled in the past three weeks,” Kirby explained. “If fuel prices remain consistent, we’d be looking at an additional $11 billion per year on jet fuel alone. Just for context, our best year ever saw revenue below $5 billion.”

However, Kirby clarified that the airline isn’t in a panic. The plan is to manage short-term pressures by cutting operations that aren’t profitable while still aiming for long-term growth.

United’s reductions will account for about 5 percentage points in capacity—3 points from off-peak flights, including mid-peak weekday routes and certain overnight flights, along with 1 point due to cuts in late-night operations, plus a suspension of flights to Tel Aviv and Dubai. They anticipate returning to full operations by fall.

Despite these adjustments, Kirby noted that demand remains strong. In fact, the airline saw “the 10 largest weeks of booking revenue” in its history over the past two months.

He emphasized that United is not responding to fuel price shocks in the drastic ways seen in past economic downturns—like furloughs or delayed aircraft orders. Instead, the company is still on track to receive about 120 new planes this year, including 20 Boeing 787s, with an additional 130 expected by April 2028.

As United takes these steps, other airlines have yet to announce any major changes. Meanwhile, Delta Air Lines has hinted that it might follow suit if fuel costs continue to climb. Many major U.S. airlines have opted to raise fares instead of cutting flights, while international carriers like Qantas and Scandinavian Airlines are also increasing prices, with Air New Zealand canceling over 1,000 flights.