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Airlines Are Cutting Cheaper Flights Amid Latest Jet Fuel Spike
American and United said higher fuel costs are forcing them to cut less-profitable flights as American adds about $1 billion in fourth-quarter costs.
- On Wednesday, American Airlines and United Airlines executives announced plans to trim flight capacity at a Morgan Stanley conference in California, citing surging fuel costs as the primary driver of capacity adjustments.
- Global conflicts in Ukraine and the Middle East have driven Brent crude up almost 70% this year, while the ongoing US-Iran war shows no signs of abating, significantly squeezing airline margins.
- American Chief Financial Officer Devon May reported every 1-cent fuel move changes American's quarterly costs by about $10 million, producing a roughly $1 billion fourth-quarter runup, while United Chief Financial Officer Mike Leskinen described bookings as "tremendously strong."
- Prioritizing profitability over market share, New York-based JetBlue Airways Corp. last week cut its capacity outlook to 1.5% to 3.5% growth from a prior 3% to 6% range, while United canceled some December flights as marginal routes became uneconomical.
- Further adjustments to flight schedules will likely extend into 2027 if fuel prices remain elevated, as prolonged high costs could accelerate broader industry changes by putting greater financial pressure on weaker carriers.
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Three major US airlines cut plans after fuel prices soar
·Copenhagen, Denmark
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Airlines cut cheaper flight options as fuel prices skyrocket
(CNN) — Airlines are cutting more flights this year in response to high fuel prices. Executives from United, American and Southwest Airlines said during an investors conference Wednesday they expect to eliminate cheaper, less profitable flights from their schedule in the final months of the year. “If fuel is higher-for-longer, I think that’s a natural response… […]
·Indianapolis, United States
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Channel 3000+7 Reposted by 7 other sources
Airlines are cutting cheaper flights amid latest jet fuel spike
(CNN) — Airlines are cutting more flights this year in response to high fuel prices.
·Madison, United States
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Total News Sources29
Leaning Left1Leaning Right2Center15Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
C 83%
11%
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