United to Cut 5% of Flights, Planning for $175 Oil from Iran War

Airline cites soaring fuel costs and plans to reduce capacity in Q2 and Q3 to avoid losing money.

Mar. 21, 2026 at 5:33pm

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United Airlines announced it will cut its scheduled flights by 5% in the second and third quarters, planning for prolonged higher oil prices after the Iran war sent jet fuel costs soaring. CEO Scott Kirby said the airline is preparing for oil to rise as high as $175 a barrel and stay above $100 until the end of 2027, which would increase United's annual fuel bill by about $11 billion. While strong travel demand is allowing airlines to raise fares, United said it will cancel about three percentage points of off-peak flying, including red-eye and weaker midweek flights, as well as pull about one point of capacity at Chicago O'Hare and suspend service to Tel Aviv and Dubai.

Why it matters

The war in Iran has pushed airlines into a new phase of fuel shock, with jet fuel prices nearly doubling since late February. This is disrupting global flying patterns and raising costs across the industry, forcing airlines to make difficult decisions about capacity and pricing in order to remain profitable.

The details

United Airlines said it would cut its scheduled flights by 5% in the second and third quarters, planning for oil to rise as high as $175 a barrel and stay above $100 until the end of 2027. This would increase the airline's annual fuel bill by about $11 billion, more than twice its best-ever profit. The airline will cancel about three percentage points of off-peak flying, including red-eye and weaker midweek flights, as well as pull about one point of capacity at Chicago O'Hare and suspend service to Tel Aviv and Dubai.

  • On March 20, 2026, United Airlines announced the flight cuts.
  • The cuts will take effect in the second and third quarters of 2026.

The players

United Airlines

A major U.S. airline that is implementing flight cuts due to soaring fuel costs.

Scott Kirby

The CEO of United Airlines, who announced the airline's plans to cut flights and prepare for prolonged higher oil prices.

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What they’re saying

“There's no point in burning cash in the near term on flying that just can't absorb these fuel costs.”

— Scott Kirby, CEO, United Airlines

What’s next

United plans to restore its full flight schedule this fall once fuel prices stabilize.

The takeaway

The Iran war has triggered a new fuel crisis for the airline industry, forcing major carriers like United to make difficult decisions about cutting capacity and raising fares in order to remain profitable in the face of skyrocketing fuel costs.