United CEO: Strong Demand to Offset Fuel Costs into 2027
United Airlines CEO Scott Kirby expects oil prices to gradually decline through 2027 but remain elevated, allowing airlines to pass on higher fuel costs through sustained fare increases. Fares have already risen over 20% this year to offset fuel costs driven by the Iran war. Kirby argues that reduced domestic capacity from Spirit Airlines' collapse, plus higher labor, maintenance, and airport fees, have boosted pricing power, ending ultra-low fares. United is adding 10 international routes, betting on strong demand.
Impact and considerations
For business travelers, rising fares and capacity adjustments will impact travel costs and route options. United's new international routes offer more choices, but higher prices may persist.
Key points
- Kirby expects oil prices to gradually decline but remain elevated into 2027.
- Airfares have risen over 20% this year to offset fuel costs.
- Spirit Airlines' collapse reduced domestic capacity, boosting pricing power.
- United is adding 10 international routes, including Okinawa and Ljubljana.
Sources and time
- Primary source
- Skift
- Other sources
- 0
- First source publication
- 26 Aug 2026, 03:04
- Page published
- 26 Aug 2026, 03:24
- Last updated
- 26 Aug 2026, 03:04
- Original links
- Skift Feed：United CEO on Fares in 2027: Fuel Stays ‘Elevated,’ But We Can ‘Pass All of That On’ (opens in a new tab)Primary source · en · Published 26 Aug 2026, 03:04