United Airlines CEO says fuel prices will hit first-quarter results
CNBC • • general
Key Points:
- United Airlines CEO Scott Kirby warned that the recent 58% surge in jet fuel prices, reaching $3.95 per gallon, will significantly impact the airline's financial results this quarter and possibly into Q2.
- Despite rising fuel costs, travel demand remains strong, with booked revenue up 20% year-over-year and no decline in customer bookings observed so far.
- United Airlines does not hedge fuel prices, making it vulnerable to sudden fuel cost increases, and expects higher fuel expenses to lead to quicker increases in airfares.
- The ongoing conflict in the Middle East has caused widespread flight cancellations and airspace closures, creating new demand for United's routes avoiding the region, especially flights connecting Australia, New Zealand, and Europe.
- United is
