United Airlines CEO Scott Kirby is warning employees that jet fuel prices have more than doubled in three weeks due to the U.S.-Israeli war on Iran, and that the crisis could cost the airline $11 billion annually if prices hold.
In a letter to employees on Friday, Kirby said United is planning for oil to hit $175 per barrel and stay above $100 through the end of 2027. For context, he noted, United's best year netted less than $5 billion in profit.
"[I]t may be a challenge to continue passing through much of the increased fuel price if oil stays higher for longer," he warned.
The airline is cutting roughly 5 percent of its planned capacity, axing red-eyes, Tuesday, Wednesday and Saturday flights during Q2 and Q3, and suspending service to Tel Aviv and Dubai.
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