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Airlines Cut Flights Amid Rising Jet Fuel Prices

3:14 AM ETConfirmed

Business Desk

In Short: Executives from American Airlines, United Airlines, and Southwest Airlines announced plans to adjust flight schedules and capacity due to rising jet fuel prices.

Executives from American Airlines, United Airlines, and Southwest Airlines announced plans to adjust flight schedules and capacity due to rising jet fuel prices.

The global average jet fuel price rose 6.1% week over week to $181.46 per barrel, according to the International Air Transport Association (IATA).

American Airlines CFO Devon May said fourth-quarter jet fuel prices are running about $1 per gallon above projections, adding roughly $1 billion to the airline's fuel bill.

May added that American will continue adjusting capacity later in the fourth quarter in response to higher fuel costs.

United Airlines CFO Michael Leskinen said some flights planned for December will no longer operate because of higher fuel prices.

Southwest Airlines CFO Tom Doxey said the carrier has already pared back about half of the modest year-over-year capacity growth it had planned for 2026.

Despite the challenges, American Airlines CEO Robert Isom said the airline still expects third-quarter revenue to rise 16% to 19% from a year earlier.

Isom noted that the airline has done a great job of recapturing a significant portion of the increased fuel expenses.

If fuel prices remain high, Leskinen said United will make further adjustments into the first quarter and beyond into 2027.

The economic impact of surging crude oil prices and rising diesel costs was also discussed, with analysts noting the potential for broader economic effects.

While airlines face these challenges, stronger-than-expected fall bookings have helped offset higher fuel costs, allowing Southwest to maintain its third-quarter earnings guidance.

What this adds

Background

What's confirmed

• Executives from American Airlines, United Airlines, and Southwest Airlines announced plans to adjust flight schedules and capacity due to rising jet fuel prices.
• The global average jet fuel price rose 6.1% week over week to $181.46 per barrel, according to the International Air Transport Association (IATA).
• American Airlines CFO Devon May said fourth-quarter jet fuel prices are running about $1 per gallon above projections, adding roughly $1 billion to the airline's fuel bill.
• May added that American will continue adjusting capacity later in the fourth quarter in response to higher fuel costs.
• United Airlines CFO Michael Leskinen said some flights planned for December will no longer operate because of higher fuel prices.
• Southwest Airlines CFO Tom Doxey said the carrier has already pared back about half of the modest year-over-year capacity growth it had planned for 2026.
• Despite the challenges, American Airlines CEO Robert Isom said the airline still expects third-quarter revenue to rise 16% to 19% from a year earlier.
• Isom noted that the airline has done a great job of recapturing a significant portion of the increased fuel expenses.
• If fuel prices remain high, Leskinen said United will make further adjustments into the first quarter and beyond into 2027.
• The economic impact of surging crude oil prices and rising diesel costs was also discussed, with analysts noting the potential for broader economic effects.
• While airlines face these challenges, stronger-than-expected fall bookings have helped offset higher fuel costs, allowing Southwest to maintain its third-quarter earnings guidance.

What's still developing

• "When you take into account fuel right now, yes, we've absolutely done a great job of recapturing a tremendous amount of that expense," Isom said.
• "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," he said at the Morgan Stanley conference.
• Spokespersons for American Airlines and United Airlines told FOX Business the carriers had nothing further to add.
• Stephen Moore joins Stuart Varney to analyze the economic impact of surging crude oil prices, rising diesel costs and President Donald Trump's proposed dividend plan for American adults.
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• He said expanding access past TSA checkpoints would allow visitors to dine and shop alongside arriving and departing travelers, generating revenue for the airport while at the same time giving loved ones extra time together before flights.
• Under the post-9/11 policies, access beyond airport security checkpoints was generally limited to ticketed travelers, although airlines could issue gate passes in certain circumstances.
• U.S. economic activity increased modestly, employment rose slightly, and prices grew at a moderate pace in recent weeks, according to the Federal Reserve's latest Beige Book report.
• Crude prices fell about 1%, retreating from more than one-month highs reached earlier in the session, after U.S. Energy Secretary Chris Wright said that more than 17 million barrels of oil flowed through the Strait of Hormuz on Monday.
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• Small-cap stocks outperformed, while airlines, miners and regional banks led sector gains.

Sources

• Fox Businesslink
• Pcmaglink
• Fox Businesslink
• Economictimeslink
• Thepointsguylink
• Restofworldlink
• BBClink
• Turkish-Footballlink
• Englishlink
• Kyivindependentlink
• Theolivepresslink
• Gazette-Newslink
• Geekwirelink
• WarpBeat — background on Fuel Prices Surge, Triggering Protests and Cost Pressures Worldwide link
• ABC News — video link