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United Airlines is cutting back on flights as rising fuel prices due to the war in Iran hit US airlines. United Airlines is the first major American airline to announce a capacity reduction after weeks of warnings from the industry.
United CEO Scott Kirby said in a memo released Friday that the airline will cut about 5% of capacity by shortening less profitable routes. He said the company is preparing for a prolonged period of high fuel prices, modeling oil prices at $175 per barrel and expecting oil prices to remain above $100 until the end of 2027.
“The reality is that jet fuel prices have more than doubled in the last three weeks,” Kirby said in a statement. “If prices were to remain at these levels, it would mean an additional $11 billion in annual costs just for jet fuel. In perspective, in United’s best year ever, we earned less than $5 billion.”
Kirby stressed that the airline is not panicking and plans to manage pressure in the short term by limiting unprofitable flying while continuing long-term growth strategy.
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A United Airlines Boeing 787 Dreamliner arrives at Los Angeles International Airport on March 7, 2026 in Los Angeles, California. (Kevin Carter/Getty Images/Getty Images)
United said the cuts will total about 5 percentage points of planned capacity, including roughly 3 percentage points for off-peak flights, such as midweek and overnight routes, and about 1 percentage point for reductions on Chicago O’Hareand another point linked to the suspended service to Tel Aviv and Dubai. The airline expects to restore its full flight schedule in the fall.
Despite the withdrawal, Kirby said demand remains strongnoting that the past ten weeks have seen the airline record its “10 highest booked revenue weeks” in its history.
He emphasized that United is not responding to the fuel shock with drastic measures seen in previous recessions, such as furloughs or delaying aircraft orders. Instead, the airline plans to take delivery of about 120 new aircraft this year, including 20 Boeing 787s, and another 130 planes by April 2028, he said.
United CEO Scott Kirby said in a memo released Friday that the airline will cut about 5% of capacity by shortening less profitable routes. (Al Drago/Bloomberg via Getty Images/Getty Images)
“To be clear, there is no change to our long-term aircraft delivery plans or overall capacity for 2027 and beyond, but there is no point in burning money in the short term on flights that simply cannot absorb these fuel costs,” he said.
The strategy, Kirby said, is to reduce unprofitable air traffic in the short term while continuing to invest in long-term growth.
Other airlines have so far failed to announce any major measures cuts to flights, which underlines how United is one of the first U.S. airlines to move from warnings to action as fuel costs rise.
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Commercial ships are photographed off the coast of Dubai on March 11, 2026. The war with Iran has caused oil prices to skyrocket, impacting U.S. airlines. (AFP via Getty Images/Getty Images)
Delta Air Lines has said it could cut capacity if fuel prices remain high Reuterswhile other major U.S. airlines have so far relied on fare increases to offset rising costs.
International airlines have moved more quickly, with carriers such as Qantas, Scandinavian Airlines and Thai Airways raising prices, and Air New Zealand canceling more than 1,000 flights, according to previous reports.
