Higher jet fuel prices prompt airlines to adjust flight schedules

Key Points:

• Executives from American Airlines, United Airlines, and Southwest Airlines reported that rising jet fuel prices are causing airlines to adjust capacity and closely monitor flight schedules, with the global average jet fuel price increasing 6.1% to $181.46 per barrel last week.
• American Airlines CFO Devon May stated that fourth-quarter jet fuel prices are about $1 per gallon higher than projected, adding approximately $1 billion to the airline's fuel costs, prompting ongoing capacity adjustments.
• United Airlines CFO Michael Leskinen announced that some December flights will be canceled due to high fuel prices, with potential further adjustments into 2027, though fourth-quarter bookings remain strong across premium, corporate, and economy segments.
• Southwest Airlines CFO Tom Doxey noted the airline has already reduced about half of its planned 2026 capacity growth in response to fuel prices, but emphasized that schedule changes so far have been minimal and stronger fall bookings have helped maintain earnings guidance.
• Despite fuel cost challenges, American Airlines expects a 16% to 19% revenue increase in the third quarter, and all three carriers continue to monitor the situation without providing additional comments.