Faced with rising jet fuel prices, several major US airlines are moving to reduce their number of flights.

Officials from American Airlines, United Airlines, and Southwest Airlines stated on Wednesday (September 16) that they are reviewing flight schedules and adjusting capacity to manage increased fuel costs, according to a report by Fox Business.

The International Air Transport Association (IATA) reported that the average global price of jet fuel rose by 6.1 percent over the previous week to reach $181.46 per barrel.

Speaking at Morgan Stanley's 14th Annual Laguna Conference, American Airlines Chief Financial Officer Devon May stated that jet fuel prices in the fourth quarter are tracking about $1 per gallon higher than July forecasts. This could increase the airline's fuel expenses by roughly $1 billion.

He mentioned that they are satisfied with third-quarter business. However, fuel prices have increased significantly over the past four weeks, prompting American Airlines to further adjust flight capacity toward the end of the fourth quarter in alignment with fuel costs.

Meanwhile, American Airlines CEO Robert Isom stated that their third-quarter revenue could increase by 16 to 19 percent compared to the same period last year.

The airline expects this growth due to strong demand in both domestic and international markets, alongside strong booking positions for both premium and economy class passengers.

United Airlines Chief Financial Officer Michael Leskinen announced that some flights planned for December will no longer be operated due to higher fuel prices. He indicated that if fuel prices remain high, further changes to flight capacity could be made in the first quarter of 2027 and beyond.

However, Leskinen described United's fourth-quarter bookings as "extremely strong," noting that no major signs of weakness have been observed thus far in premium travel, corporate journeys, or economy class bookings.

Southwest Airlines is also under pressure from fuel expenses. The company's Chief Financial Officer, Tom Doxey, stated that about half of the capacity expansion originally planned for early 2026 has already been scaled back year-over-year.

He noted that if fuel prices remain elevated for a prolonged period, reducing flight capacity would be a natural response.

However, a Southwest spokesperson later clarified in a statement to Fox Business that the changes made to the schedule so far are very minor, and Doxey's remarks were given as an example of potential capacity cuts rather than the announcement of a new measure.

According to a Reuters report, stronger-than-expected autumn bookings are helping Southwest absorb some of the pressure from extra fuel costs, enabling the company to maintain its previous earnings outlook for the third quarter.

Spokespersons for American Airlines and United Airlines told Fox Business that they have nothing further to add on the matter.
Source: Fox Business