The airline’s CEO, Scott Kirby, warns that the price of the commodity could rise to US$175 per barrel
United Airlines will cut a greater number of unprofitable flights over the next two quarters as it braces for a prolonged period of high jet fuel prices due to the war in Iran, Reuters news agency reports. The move will be taken despite strong demand for travel, which would allow US airlines to raise fares.
United had already been reducing the offer of less profitable flights, including some operations during the week, on Saturdays and also at night.
In a memo sent to employees on Friday, Chief Executive Scott Kirby said the company is preparing for a scenario in which oil reaches as high as $175 per barrel and remains above $100 until the end of 2027.
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With prices at these levels, United’s annual fuel bill would increase by about $11 billion, more than double the profit it made in its “best year ever,” the CEO said, Reuters says.
