Major airlines adjust flight schedules as jet fuel prices surge
Planes of United Airlines, Southwest Airlines and American Airlines are seen at LaGuardia Airport in New York, the United States, on April 23, 2026. (Photo by Zhang Fengguo/Xinhua via Getty Images)
Executives from American Airlines, United Airlines and Southwest Airlines said Wednesday that rising jet fuel prices are prompting carriers to adjust capacity and closely monitor their schedules.
By the numbers:
The global average price of jet fuel climbed 6.1% week over week to $181.46 per barrel last week, according to the International Air Transport Association.
American Airlines Chief Financial Officer Devon May said at Morgan Stanley’s 14th Annual Laguna Conference that fourth-quarter jet fuel prices are about $1 per gallon higher than the airline projected in July. The increase is expected to add roughly $1 billion to American’s fuel costs.
What they're saying:
"Overall for the third quarter, we feel great," May said. "What's happened in the last four weeks, though is fuel's run up probably $1 a gallon or something like that for the fourth quarter alone."
May said American will continue adjusting capacity later in the fourth quarter to account for higher fuel expenses.
American Airlines CEO Robert Isom said the carrier still expects third-quarter revenue to increase 16% to 19% from the same period last year, citing strength across domestic and international markets and in both premium and economy cabins, according to Reuters.
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"When you take into account fuel right now, yes, we've absolutely done a great job of recapturing a tremendous amount of that expense," Isom said.
United Airlines Chief Financial Officer Michael Leskinen said some flights scheduled for December will be canceled because of elevated fuel prices.
Fuel prices could mean higher flight prices
Airlines are planning to cut flights later this year. Fox News' Kailey Schuyler reports that means there could be higher flight prices.
"As you look into the fourth quarter, there'll be some flights in December that we won't fly that we thought we were going to fly," he said at the Morgan Stanley conference. "If fuel remains high, we'll make some adjustments into the first quarter and beyond into 2027."
Leskinen described United’s fourth-quarter bookings as "tremendously strong," saying premium travel, corporate demand and economy bookings have remained resilient.
"Bookings have continued as we expected, so that piece of the equation is resilient — very little evidence of demand destruction," Leskinen said.
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Southwest Airlines Chief Financial Officer Tom Doxey said the carrier has already eliminated about half of the modest year-over-year capacity growth it planned at the beginning of 2026.
"If fuel is higher for longer," Doxey said, trimming capacity would be the "natural response."
A Southwest spokesperson told FOX Business that the schedule changes made so far have been minimal. The spokesperson said Doxey was making an "illustrative point" about reducing capacity and was "not alluding to an action we've taken."
Doxey also said stronger-than-expected fall bookings have helped offset higher fuel costs, allowing Southwest to maintain its third-quarter earnings guidance, according to Reuters.
Spokespersons for American and United told FOX Business that the airlines had nothing further to add.
The Source: FOX Business contributed to this report. The story is based on comments from executives at American Airlines, United Airlines and Southwest Airlines during Morgan Stanley’s 14th Annual Laguna Conference. Fuel price data came from the International Air Transport Association, while additional information about airline revenue, bookings and earnings guidance came from Reuters. This story was reported from Los Angeles.