Major US airlines are cutting planned flights as jet fuel prices climb again, with American Airlines, United Airlines and Southwest Airlines adjusting capacity in response to rising operating costs.
The global average jet fuel price rose by 6.1% in a week to $181.46 (€153) per barrel, according to the International Air Transport Association (IATA), highlighting a cost increase that extends well beyond the United States and is also being closely watched by European carriers.
Executives from American, United and Southwest outlined plans to adjust their schedules at Morgan Stanley’s annual Laguna Conference on Wednesday, with some flights already set to disappear from schedules towards the end of the year.
American Airlines Chief Financial Officer Devon May said fuel prices for the fourth quarter were running approximately $1 per gallon above the level the carrier had forecast in July. The difference is expected to add around $1 billion (€843 million) to American’s fuel bill.
“What’s happened in the last four weeks, though, is fuel’s run up probably $1 a gallon or something like that for the fourth quarter alone,” May said.
American is consequently planning further capacity adjustments towards the end of the fourth quarter. However, demand remains strong, with the airline expecting third-quarter revenue to increase between 16% and 19% compared with the same period last year.
United Airlines is also removing flights from its schedule. Chief Financial Officer Michael Leskinen said some services originally planned for December would no longer operate.
“As you look into the fourth quarter, there’ll be some flights in December that we won’t fly that we thought we were going to fly,” Leskinen said. “If fuel remains high, we’ll make some adjustments into the first quarter and beyond into 2027.”
The airline has not disclosed which routes will be affected. Leskinen said that routes at the lower end of profitability can become unprofitable when fuel prices rise sharply.
Southwest Airlines has meanwhile reduced around half of the modest year-on-year capacity growth it had originally planned for 2026. Chief Financial Officer Tom Doxey said further reductions would be a “natural response” if fuel remained elevated.
However, Southwest later clarified that schedule adjustments made so far had been minimal and that Doxey was illustrating how the airline could respond if fuel remained expensive rather than announcing substantial additional cuts.
Cheaper flights under pressure
The reductions could have a disproportionate impact on travellers looking for lower fares. Flights operating at less popular times or on routes with thinner demand are generally more vulnerable to capacity cuts because their margins are already lower.
That could include services on Tuesdays and Saturdays, as well as very early morning or late-night flights, according to aviation experts cited by CNN.
The situation is particularly challenging for budget-conscious passengers in the United States following the disappearance of Spirit Airlines, which halted operations in May, while other low-cost carriers have increasingly sought to attract passengers willing to pay for more premium products.
Jet fuel costs more than crude oil. The difference between the two is called the jet fuel crack spread. The strong correlation between jet fuel and crude oil prices has weakened, meaning higher and more volatile crack spreads. Learn why in the #WeeklyChart https://t.co/MuuCoXlxrj pic.twitter.com/nS5HMPOd9C
— IATA (@IATA) September 12, 2026
Airlines have nevertheless reported little evidence that higher prices are significantly weakening overall passenger demand.
United said its fourth-quarter bookings remained “tremendously strong”, with premium travel, corporate demand and economy bookings all proving resilient.
“Bookings have continued as we expected, so that piece of the equation is resilient – very little evidence of demand destruction,” Leskinen said.
Strong demand combined with reduced capacity could make it more difficult for passengers to find cheaper tickets, particularly if fuel prices remain elevated into 2027.
European airlines also exposed to fuel surge
Although the latest capacity announcements concern US carriers, the underlying increase in jet fuel prices is global, meaning European airlines are exposed to the same energy-market pressures.
Fuel represents one of the aviation industry’s largest operating expenses, and sustained price increases can affect decisions on capacity, routes and ultimately ticket prices.
European airlines may have some protection through fuel hedging, whereby carriers lock in part of their future fuel requirements at predetermined prices. This can reduce exposure to sudden short-term increases, although it cannot completely protect airlines from a prolonged period of high prices.
The pressure also comes as European aviation faces additional costs associated with fleet renewal, sustainable aviation fuel requirements and the wider decarbonisation of the sector.
Aircraft delivery delays have added another challenge by forcing some airlines to operate older and generally less fuel-efficient aircraft for longer than originally planned. For passengers, however, higher fuel prices do not automatically translate into equivalent increases in ticket prices. Airfares ultimately depend heavily on supply and demand, as airlines balance operating costs against the number of seats available and passengers’ willingness to pay.
With US carriers already beginning to remove less profitable capacity, airlines on both sides of the Atlantic will be watching closely to see whether the latest jet fuel surge proves temporary or begins to influence schedules further into 2027.
