United Airlines Cuts Flights as Fuel Prices Soar Amid Iran War

Airline trims less profitable routes, expects elevated fuel costs to persist through 2027

Mar. 21, 2026 at 9:20pm

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United Airlines is slashing around 5% of its flight capacity as soaring fuel prices tied to the ongoing war with Iran hit U.S. carriers. CEO Scott Kirby said the airline is preparing for a prolonged period of elevated fuel costs, modeling oil at $175 per barrel and expecting prices above $100 through 2027. United plans to cut less profitable routes while continuing its long-term growth strategy, avoiding drastic measures like furloughs or delaying aircraft orders seen in past downturns.

Why it matters

United's capacity cuts mark the first major move by a U.S. airline to address the surge in fuel prices sparked by the Iran conflict. The decision highlights the significant financial pressure facing airlines as jet fuel costs more than double in just a few weeks, threatening profitability across the industry.

The details

United will trim about 5% of its planned capacity, including around 3 percentage points from off-peak flying like midweek and overnight routes, 1 point from reductions at Chicago O'Hare, and another 1 point from suspending service to Tel Aviv and Dubai. However, the airline expects to restore its full schedule by the fall. Despite the pullback, United says demand remains strong, having recorded its '10 biggest booked revenue weeks' in the past 10 weeks.

  • Fuel prices have more than doubled in the last three weeks.
  • United is modeling oil at $175 per barrel and expects prices above $100 through the end of 2027.

The players

United Airlines

A major U.S. airline that is slashing flights in response to soaring fuel prices tied to the Iran war.

Scott Kirby

The CEO of United Airlines who announced the flight cuts in a staff memo.

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What they’re saying

“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 $11B in annual expense just for jet fuel. For perspective, in United's best year ever, we made less than $5B.”

— Scott Kirby, CEO, United Airlines

What’s next

United expects to restore its full flight schedule by the fall as it continues to manage the short-term fuel price pressure.

The takeaway

United's capacity cuts in response to soaring fuel costs highlight the significant financial challenges facing the airline industry due to the ongoing Iran conflict. The decision underscores how carriers are being forced to make tough operational decisions to offset the surge in jet fuel prices, which threatens profitability across the sector.