Airlines around the world are racing to figure out how to cover billions of dollars in elevated jet fuel costs as global oil prices surge again.
United Airlines, for instance, just reported on its second quarter earnings call that it anticipates fuel costs to increase by nearly $6 billion for the full year compared to the forecast at the start of 2026.
For the second quarter alone, the airline’s fuel costs increased by $2.3 billion, due to the war in Iran.
Airlines and other companies across the travel industry breathed a brief sigh of relief this summer when it looked like a peace deal was on the horizon, ending the war in Iran and possibly bringing elevated oil prices back down to average costs.
Now, with peace negotiations falling apart, airlines are back to strategizing how to cover higher prices for fuel, which is typically one of carriers’ largest expenditures.
United, however, is confident it can recover the majority of the extra costs thanks to strong travel demand from loyal customers and the addition of new products and amenities.
“United is built to thrive in every environment, and when oil prices spiked in March, we quickly and decisively acted to adjust our schedules, while simultaneously doubling down on our customer investments,” United CEO Scott Kirby said.
The airline said that with this strategy, it expects to recover about half of the elevated fuel costs for the second quarter, or about $1.150 billion. Its adjusted pre-tax earnings were $843 million for the quarter.
“Our brand-loyal customers value their travel on United whether they are in Polaris or in Economy,” Kirby said. “Our network expansions, investment in Starlink, and innovations such as Relax Row are giving customers new reasons to choose United.”
Driving the recovery is demand for premium products, with revenue for the premium segment up by 16% for the quarter compared to 2025. Loyalty revenue also jumped 11% for the quarter, as well as revenue from the basic economy segment, which increased 11% as well.
In the third quarter it predicts recovering 80% to 90% of the extra fuel costs, and recovering all of the elevated fuel spend by the fourth quarter.
In the second half of 2026, United will continue to roll out new products, like its first “Born to Explore” Airbus A321XLR plane, outfitted with 32 premium seats. The single-aisle long-range jet is set to launch on domestic routes this fall before debuting on international routes to Europe and South America.
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