US EditionUnited Airlines says fares may need to rise up to 20% to offset fuel surge
CEO Scott Kirby said the carrier aims to pass through rising fuel costs as it already raised baggage fees and made five fare increases.
- On Thursday, United Airlines CEO Scott Kirby announced the airline may increase ticket prices by 15% to 20% to offset rising fuel costs before the busy summer travel season.
- Since the war in Iran began, jet fuel prices have climbed nearly 70%, with costs up over 100% since last year, impacting carriers across the board.
- With thin profit margins, airlines often face a choice between raising fares or cutting routes, leading Johnny Jet, editor-in-chief of JohnnyJet.com, to predict other carriers will follow United's lead.
- Meanwhile, the Trump administration is reportedly finalizing a bailout package worth nearly $500 million for Spirit Airlines, which is struggling with bankruptcy and a failed merger with JetBlue.
- While United recorded over $59 billion in operating revenue last year, the company recently explored a merger with American Airlines, though reports indicate American is not interested.
18 Articles
18 Articles
United CEO warns plane ticket prices are about to skyrocket
As conflict continues in the Middle East, oil and jet fuel prices have risen sharply, prompting United Airlines CEO Scott Kirby to note that these higher costs could soon translate into higher ticket prices. What's happening? Since the beginning of the war in Iran, United says its jet fuel expenses have gone up by over $340 million, spurring the airline to consider strategies to protect its margins. At an academic event in March, Kirby was asked…
United Airlines raising ticket prices up to 20% as fuel costs surge amid Iran war
United Airlines warned Wednesday that the company is raising ticket prices by as much as 20% as it grapples with surging jet fuel costs driven by the war in Iran.The alarming notice came during the company’s quarterly earnings call, where CEO Scott Kirby said the airline is aiming to "recover 100% of the increase in jet fuel prices as quickly as possible." "Sell-in yields for all future travel are now up 20% year-over-year," Executive Vice Pres…
In an overall context of rising airfares due to the war in the Middle East, the US airline United Airlines is planning to pass on the full incremental cost it incurs. The bill could go up for users.
Chicago Sun Times
Usa newsUnited Airlines considers raising ticket prices 15% to 20% to offset fuel costs due to war in Iran
United Airlines is considering raising ticket prices by 15% to 20% to offset the price of jet fuel that has spiked during the U.S.-Israel war with Iran.The Chicago-based company is seeking to recoup the higher cost of fuel "as quickly as possible," United CEO Scott Kirby said in a Wednesday earnings call."To recover 100% of fuel costs, yields need to increase by about 15% to 20%, and we are assuming that fuel may remain higher for longer," Kirby…
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