United Airlines is significantly downsizing its network over the next few months, due to the surge in fuel price.
It comes despite a possible lull in the conflict which has seen airlines regain some value on their stock prices.
CEO Scott Kirby told employees in a memo it is planning for oil prices to remain high for the rest of the year.
“The reality is, jet fuel prices have more than doubled in the last three weeks. If prices stayed at this level, it would mean an extra $11 billion in annual expense just for jet fuel,” he said.
The airline said it will cut around 5% of flights predominantly on underperforming routes and during off peak periods.
These cuts will likely last until the fall, it says.
Flights on quieter days like Tuesdays, Wednesday and Saturdays, and red eye flights will be among those flight cuts.
United’s flight operations at Chicago O’Hare are also being cut for unrelated reasons, due to FAA mandated flight reductions at the airport, which is likely to impact American Airlines.
“To be clear, nothing changes about our longer-term plans for aircraft deliveries or total capacity for 2027 and beyond, but there’s no point in burning cash in the near term,” Kirby added.
In spite of this, United says travel demand remains ‘the strongest we’ve ever seen. The 10 biggest booked revenue weeks in our history have been the last 10 weeks.”
United has no plans to furlough any staff.
