United Airlines CEO: Fuel Spike to Hit Results, but Travel Demand Remains Strong

Kirby says higher fuel costs will likely lead to quick airfare increases, but bookings are up 20% from a year ago.

Published on Mar. 6, 2026

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United Airlines CEO Scott Kirby said the recent spike in fuel prices due to the conflict between the U.S. and Israel against Iran will have a "meaningful" impact on the carrier's financial results this quarter. However, Kirby added that travel demand has remained resilient, with booked revenue up 20% from a year ago. He noted that higher fuel costs will probably lead to quick airfare increases, but demand "has not taken even a tiny step back."

Why it matters

The rise in fuel prices is a significant challenge for airlines, as jet fuel is their biggest expense after labor. United, like most major U.S. carriers, does not hedge fuel, making them more vulnerable to price fluctuations. The resilience of travel demand despite higher costs is an encouraging sign for the industry's recovery.

The details

Jet fuel prices have surged 58% since last Friday, going for $3.95 a gallon on Thursday. Kirby said the higher fuel costs will have a "meaningful" impact on United's first-quarter results and could also affect the second quarter if the prices remain elevated. He added that the airline is in talks with the Trump administration for potential charter flights to help get citizens out of the Middle East, where airspace closures and flight cancellations have stranded over 1 million passengers.

  • On Saturday, the U.S. and Israel attacked Iran, leading to the spike in fuel prices.
  • As of Thursday, jet fuel was priced at $3.95 per gallon, up 58% since last Friday.

The players

Scott Kirby

The CEO of United Airlines, who discussed the impact of rising fuel prices on the carrier's financial results and the resilience of travel demand.

United Airlines

A major U.S. airline that does not hedge fuel, making it more vulnerable to price fluctuations.

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What they’re saying

“If it continues we'll feel it in Q2 also.”

— Scott Kirby, CEO (CNBC)

“No one hedges anymore and even if you do, hedging the crack spread is really hard to do.”

— Scott Kirby, CEO (CNBC)

“Demand 'has not taken even a tiny step back,'”

— Scott Kirby, CEO (CNBC)

What’s next

United is in talks with the Trump administration for potential charter flights to help get citizens out of the Middle East, where airspace closures and flight cancellations have stranded over 1 million passengers.

The takeaway

The rise in fuel prices poses a significant challenge for airlines like United, which do not hedge fuel costs. However, the resilience of travel demand, with bookings up 20% from a year ago, suggests the industry may be able to weather the storm through quick airfare increases.