United Airlines has begun cutting flights as fuel prices surge amid the ongoing US-Iran conflict.
The airline is the first major US carrier to announce capacity reductions tied to rising fuel costs. CEO Scott Kirby said in a staff memo released Friday that the company will reduce capacity by roughly 5 percent, primarily by cutting less profitable routes. He added that the airline is preparing for long-term elevated fuel prices.
"The reality is, jet fuel prices have more than doubled in the last three weeks," Kirby said. "If prices stayed at this level, it would mean an extra $11B in annual expense just for jet fuel. For perspective, in United’s best year ever, we made less than $5B."
