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United Airlines anticipates $6 billion in added fuel costs this year
CBS News • • general
Key Points:
- United Airlines anticipates spending an additional $6 billion on jet fuel in 2024, marking it as the second-highest expense after labor, driven by rising crude oil prices.
- In Q2, United's fuel costs surged by 84% year-over-year, amounting to an extra $2.3 billion, but higher airfares have helped mitigate the impact amid strong consumer demand.
- Delta Air Lines also reported a 77% increase in Q2 fuel expenses, totaling $4.4 billion, and stated it will maintain higher ticket prices due to robust demand.
- Jet fuel prices peaked at nearly $5 per gallon in April, influenced by geopolitical tensions between the U.S. and Iran, and stood at $3.64 per gallon as of Tuesday.
- Other major U.S. airlines are expected to release their earnings reports later this month, potentially providing further insights into the industry's fuel cost challenges.
