Airfares could soon rise sharply as United Airlines warns that high oil prices may force ticket increases of up to 20%, putting pressure on travelers and the broader airline industry.
Speaking in a recent interview, CEO Scott Kirby said the company is preparing for fuel costs to stay high for a long time, especially as global tensions continue to push oil prices upward.
If that happens, airlines may have no choice but to pass those costs on to customers.
"That would require prices to be up 20%, to break even to cover that cost," Kirby said, pointing to the growing financial strain from fuel expenses, NY Post reported.
Jet fuel is one of the biggest costs for airlines. When oil prices rise, it becomes much more expensive to operate flights. Kirby warned that if fares increase, fewer people may choose to travel.
"There will be less demand. There'll be fewer people traveling as prices go up," he said.
For now, travel demand remains strong. Kirby noted, "Demand is incredibly strong right now," but added that the airline is planning ahead in case conditions change.
United Airlines CEO Scott Kirby said ticket prices may have to go up by 20% if jet fuel prices remain elevated for longer https://t.co/WPmNuUmZ0R
— Bloomberg (@business) March 24, 2026
United Airlines Cuts Flights as Fuel Costs Surge
United has already cut about 5% of its flight capacity, removing routes that are not making enough money to cover rising fuel costs.
"There's just no point in flying flights that are gonna lose money," Kirby explained, emphasizing that the airline is focusing on efficiency.
According to FoxBusiness, the company expects oil prices could remain above $100 per barrel through next year and may even climb as high as $175 in a worst-case scenario.
If that happens, Kirby described it as a "stress event" for the airline industry, though still not as severe as the impact seen during the COVID-19 pandemic.
Unlike some airlines, United does not rely heavily on fuel hedging. Kirby said the company's size makes it difficult to hedge without affecting the market. Instead, United has built up its cash reserves to handle unexpected cost increases.
The airline estimates that current fuel prices could add about $11 billion in expenses. To offset that, ticket prices would need to rise significantly, which could change how people plan trips.
Experts say higher fares may push families to rethink vacations or choose closer destinations. While business travel may continue, everyday travelers could feel the biggest impact.
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