United raises fares 15–20%

United Airlines said on April 22 that ticket prices may need to rise by 15% to 20% as jet-fuel costs jump. (reuters.com) Chief Executive Scott Kirby said on United’s earnings call that the airline’s goal is to recover 100% of the increase in jet-fuel prices as quickly as possible. He said that implies a 15% to 20% increase in yields, the industry measure for average fare revenue. (reuters.com) (benzinga.com) The fuel shock has been sharp. Airlines for America’s U.S. jet-fuel index was $4.19 a gallon on April 24, up from about $2.50 before the Iran conflict, according to the trade group and Fox Business. (airlines.org) (foxbusiness.com) Chevron Chief Executive Mike Wirth said on CBS that jet-fuel supplies were already seasonally low before the conflict and that shipping disruptions tied to the Strait of Hormuz made the market more vulnerable. He said higher fares and reduced flight availability could be the first broad effects travelers notice. (foxbusiness.com) (thehill.com) United’s warning comes as regulators are already trying to reduce summer strain at one of its biggest hubs. The Federal Aviation Administration capped Chicago O’Hare at 2,708 daily flights for summer 2026 after airlines filed schedules the airport could not handle. (reuters.com) (afar.com) The company also cut its 2026 earnings outlook as fuel costs rose. Reuters reported that United now expects adjusted earnings of $7 to $11 a share this year, down from its January forecast of $12 to $14. (thestar.com.my) (reuters.com) Other airlines have already been trimming schedules, adding surcharges, or raising fees as fuel prices rise. CNBC reported on April 7 that carriers were cutting flights because jet fuel is usually their biggest cost after labor. (cnbc.com) United has not said that every ticket will rise by the same amount, and Kirby framed the 15% to 20% figure as what may be needed if fuel stays elevated. The next test is whether summer travelers keep paying higher fares as airlines pass through more of the fuel bill. (reuters.com)