United Air Sees Risk of Surging Fuel Cost, Says Airline Is Ready

United Airlines Holdings Inc. Chief Executive Officer Scott Kirby warned of $175 oil prices that would dramatically drive up jet-fuel expenses, outlining worst-case scenarios even as the aviation industry benefits from current record travel demand.

The already elevated price of jet fuel is prompting the airline to cut 5 percentage points of capacity in the near term where routes are temporarily unprofitable, Kirby told staff in a memo late on Friday. At the same time, he said the carrier is strong enough to weather a crisis and won’t defer investments or furlough workers.