United Airlines cuts nearly 5% of flights as war in Iran raises fuel costs
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United Airlines is cutting flights as rising fuel prices linked to the Iran war hit US carriers, becoming the first major US airline to announce a cut after weeks of industry warnings.
United CEO Scott Kirby said in a staff memo released Friday that the airline would cut about 5% of capacity by cutting less profitable routes. He said the company is preparing for a long period of high fuel prices, modeling oil at $175 per barrel and expecting it to remain above $100 until the end of 2027.
“The truth is, jet fuel prices have doubled in the last three weeks,” Kirby said in a statement. “If prices stay at this level, it would mean another $11B in annual jet fuel costs. Looking at it, in United’s best year, we made less than $5B.”
Kirby emphasized that the airline is not panicking and plans to manage the short-term pressure by cutting unprofitable flights while continuing with its 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 would be about 5 percentage points of its scheduled capacity, including about 3 points from peak flights such as weekday and night routes, about 1 point from reductions at Chicago O’Hare, and another point tied to suspended service to Tel Aviv and Dubai. The airline expects to resume its full schedule in the fall.
Despite the setback, Kirby said demand remains strong, noting that the airline recorded the “biggest 10 weeks of bookings” in its history in the past 10 weeks.
He emphasized that United is not responding to fuel shocks with the drastic measures seen in past downturns, such as furloughs or delays in flight orders. Instead, the airline plans to continue delivering about 120 new planes this year, including 20 Boeing 787s, with another 130 planes to arrive by April 2028, he said.
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United CEO Scott Kirby said in a staff memo released Friday that the airline would cut about 5% of capacity by cutting less profitable routes. (Al Drago/Bloomberg via Getty Images/Getty Images)
“To be clear, nothing is changing in terms of our long-term plans for aircraft delivery or total capacity for 2027 and beyond, but there is no need to burn money in the near term for flights that cannot absorb these fuel costs,” he said.
The strategy, Kirby said, is to cut short-term unprofitable flights while continuing to invest in long-term growth.
Other airlines, on the other hand, stopped short of announcing major flight reductions, emphasizing that United is among the first US airlines to move from warning to action as fuel costs rise.
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Commercial ships are pictured offshore Dubai on March 11, 2026. War with Iran has caused oil prices to rise, affecting US airlines. (AFP via Getty Images/Getty Images)
Delta Air Lines has said it may cut capacity if fuel prices remain high, according to Reuters, while other major US carriers have so far relied on fare increases to offset rising costs.
International carriers have moved quickly, with airlines including Qantas, Scandinavian Airlines and Thai Airways raising fares, and Air New Zealand canceling more than 1,000 flights, according to earlier reports.
