by Lacey Pfalz
Last updated: 8:40 AM ET, Sat March 21, 2026
As the cost of jet fuel continues to rise, with some projections indicating it might remain above $100 per barrel through 2027, United Airlines’ CEO Scott Kirby announced it would cut unprofitable flights over the next six months to reduce costs.
While airlines are already raising airfare on the consumer side, CNBC recently reported that United is preparing for oil prices to rise to $175 per barrel and remain elevated through 2027, which would increase the airline’s annual fuel cost to twice the profit it earned during its best year, with an $11 billion price tag.
CEO Scott Kirby wrote in a memo to employees, “There’s a good chance it won’t be that bad. But…there isn’t much downside for us to preparing for that outcome.”
Jet fuel prices have nearly doubled since February 28’s initial outbreak of war, when the U.S. and Israel launched a joint attack on Iran. Since then, the narrow Strait of Hormuz, an important shipping lane directly south of Iran, has been under Iranian control.
That's translated to raising prices for consumers. Fares for United have risen 15-20 percent over the past week. Total travel prices have seen the largest increase in more than a year thanks to the war's impact.
The airline will cancel three percent of its off-peak flights in the second and third quarters of the year, choosing routes with the least demand. It’ll also cancel one percent of flights from Chicago O’Hare and continue suspending service to Tel Aviv and Dubai. Five percent of the airline’s total capacity will be cut.
The airline plans to restore its full schedule this fall.
Earlier this week, Delta told reporters that it might cut flights if fuel prices remain as they are.
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