Photo Credit: United CEO Scott Kirby. Courtesy of United
United is betting demand stays strong. But at some point, added capacity will put pressure on prices.
LinkedIn X Facebook Email Gift How will planned double-digit capacity growth at United and American affect their ability to hold fares high? Which specific new international routes is United launching and what demand signals justify them? How dependent are airline profits on fuel prices if fare increases are meant to be permanent? Select a question above or ask something else
United Airlines CEO Scott Kirby said he expects fuel prices to gradually decline next year, however fares will stay up.
“My base case would be that oil sort of gradually declines,” he said on CNBC before United unveiled a set of new international routes at Newark on Tuesday. “It stays higher than it was, but that oil gradually declines into 2027.”
Surging oil prices caused by the Iran war have eaten into airlines’ profits and have caused them to increase airfares in response. This year, airfares rose by more than 20% to offset fuel costs.
Jet Stream keeps you ahead of the fast-moving world of global airlines.
By submitting this form, you agree to receive email communication from Skift.
See more essential travel news in your search results.
Tags: business travel , iran war , jet stream , premium travel , united airlines
LinkedIn X Facebook Email Gift First read is on us . Subscribe today to keep up with the latest travel industry news.
Subscribe now for complete access to Skift.com’s trusted coverage of the travel industry.
Enter your email for a complimentary article + exclusive offers.