United to cut scheduled flights by 5% as Iran war sends fuel costs soaring

United Airlines says it would cut its scheduled flights by 5 percent in the second and third quarters, planning for prolonged higher oil prices after the Iran war sent jet fuel costs soaring, even as strong travel demand helps US carriers raise fares and cushion the hit.

Chief Executive Scott Kirby says in a staff memo that the airline is preparing for oil to rise as high as $175 a barrel and stay above $100 until the end of 2027. United’s annual fuel bill would rise by about $11 billion, more than twice the profit in its best year, if prices stay at those levels, Kirby says.

The war in Iran has pushed airlines into a new phase of fuel shock. Jet fuel prices have nearly doubled since late February, raising costs across the industry and disrupting global flying patterns through reroutings and airspace restrictions.