Surging fuel costs drive rising holiday airfare and possible flight cuts, United Airlines says

Holiday travelers may face fewer choices and higher prices as airlines respond to surging fuel costs, according to Business Insider. Oil prices have climbed above $100 a barrel, jet fuel is around $4.53 a gallon, and airfares rose more than 23% year over year in August, the report said.

At Morgan Stanley’s Laguna Conference, United Airlines chief financial officer Mike Leskinen said the carrier is already trimming routes that no longer make sense in a higher-fuel environment, as reported by the Chicago Business Journal. “As you look into the fourth quarter, there’ll be some flights in December that we won’t fly that we thought we were going to fly.” Leskinen also added, “If fuel remains high, we’ll make some adjustments into the first quarter and beyond into 2027.”

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Airlines plan fewer flights, higher fares

United, Southwest Airlines and American Airlines all said strong demand is helping cushion the impact, but each said higher fuel costs could lead to lower capacity and higher ticket prices, according to Business Insider. Leskinen said United plans to pass along 100% of higher fuel costs, the Chicago Business Journal confirmed, though the increase reaches customers with a lag because many tickets are already sold.

Southwest CFO Tom Doxey said the airline has “the ability to recover a good portion” of the added expense, while American Airlines CFO Devon May said the same general pressure could push carriers to trim flights and lift fares, as reported by Business Insider.

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Travel analyst Sally French of NerdWallet said, per Business Insider, “The true cost of flying is higher than ever,” pointing to rising checked-bag and seat-selection fees in addition to airfare.

French said booking early is still the best move, with a sweet spot of one to three months ahead for domestic flights and two to eight months for international travel, according to the report. She also suggested refundable fares so travelers can cancel and rebook if prices drop.