by Lacey Pfalz
Last updated: 8:45 AM ET, Thu September 17, 2026
Three major U.S. airlines are planning to cut their flight schedules after the most recent surge in jet fuel prices to remain profitable amidst a worsening economic environment.
American Airlines, United Airlines and Southwest Airlines executives told reporters on Wednesday, September 16, that they’d begin cutting capacity as a new measure to ensure profitability, according to Reuters.
Airfare was the first major casualty; as jet fuel prices doubled from normal, pre-war prices, airlines began hiking fares to the point where a ticket now costs 20-25% more this year than last year.
While demand for air travel is still high, this latest jump in jet fuel prices is another blow. American Airlines alone added $1 billion to its fourth-quarter costs from jet fuel.
Airlines will now turn to less-profitable routes to cut capacity and save jet fuel this year and, most likely, into 2027. United reported it was cutting some December flights and may plan to cut more in the first quarter of the year, too.
Southwest said it had already cut its planned capacity growth for the year in half due to higher fuel prices.
Shares of the three major airlines have fallen 11% to 15% over the past month as the war with Iran continues and jet fuel prices rise.
Yet it’s not all bad: American Airlines CEO Robert Isom said he felt “really good” about the airline’s projected third-quarter revenue, expecting it to rise 16% to 19% from last year.
"We've absolutely done a great job of recapturing a tremendous amount of that expense," Isom said of higher jet fuel prices.
United’s chief financial officer, Michael Leskinen, told reporters that fourth-quarter bookings are “tremendously strong,” and explained that its strategy is: "We are not flying to maximize market share. We're flying to maximize profitability and free cash generation," he told reporters at the Morgan Stanley conference.
Back in June, the International Air Transport Association (IATA) reported that the U.S.-Iran war has added a $100 billion bill increase for jet fuel for airlines worldwide, with airlines halving their pre-war profit projections.
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