United Airlines Warns of 20% Fare Hike to Cope With Oil Surge
A United Airlines plane at Ronald Reagan Washington National Airport (DCA) in Arlington, Virginia.
Photographer: Valerie Plesch/BloombergUnited Airlines Holdings Inc. Chief Executive Officer Scott Kirby said ticket prices may have to go up by 20% if jet fuel prices remain elevated for longer.
The airline expects some consumer pushback and fewer people to travel if ticket prices continue to rise, Kirby said in a Bloomberg TV interview on Tuesday. The airline has already reduced 5% of its capacity on routes that are not profitable and don’t cover higher fuel prices, Kirby said.