Investing.com \u2013 United Airlines Holdings Inc (NASDAQ:UAL) warned that rising fuel costs linked to the Iran conflict are beginning to pressure the aviation industry, even as travel demand remains strong.<\/p>\n
In a message to employees, United CEO Scott Kirby said the airline is preparing for a period of elevated oil prices, which could drive higher operating costs and force adjustments to capacity and pricing.<\/p>\n
Kirby said United is planning for a scenario where oil could rise to $175 per barrel and remain elevated through 2027, though he added it may not get that severe.<\/p>\n
He said the airline will cut about 5% of planned capacity in the near term, including trimming off-peak flights and suspending select international routes, to manage higher fuel costs.<\/p>\n
He added that United will continue long-term investments, including aircraft deliveries and infrastructure expansion, positioning the airline to gain an edge if elevated oil prices persist.<\/p>\n
The warning comes as global oil markets remain volatile amid escalating tensions in the Middle East. Analysts say the near-term outlook for airlines will depend on how long supply disruptions persist and whether crude prices stabilize.<\/p>\n
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