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Fuel prices are putting fresh pressure on major U.S. airlines, prompting American Airlines, United Airlines and Southwest Airlines to reconsider flight schedules and capacity plans. Executives from the carriers said Wednesday that rising jet fuel costs are forcing them to monitor routes closely as the industry heads into the final months of 2026.
The global average jet fuel price climbed 6.1% from the previous week to $181.46 per barrel last week, according to the International Air Transport Association. The sharp increase has added billions of dollars in potential operating costs for airlines already managing complex schedules and uneven travel demand.
Fuel Prices Trigger Urgent Airline Capacity Changes
American Airlines Chief Financial Officer Devon May said fourth-quarter jet fuel prices are running approximately $1 per gallon above the company’s July projection. That change is expected to add roughly $1 billion to the airline’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 while speaking at Morgan Stanley’s 14th Annual Laguna Conference.
May added that American will continue adjusting capacity later in the fourth quarter if fuel prices remain elevated. Despite the cost increase, the airline still expects third-quarter revenue to rise between 16% and 19% from a year earlier, according to Reuters.
American Airlines CEO Robert Isom pointed to strength across domestic and international markets, as well as both premium and economy cabins. He said the company has done a strong job of recovering a significant portion of the higher fuel expense.
United Airlines Drops Some December Flights
United Airlines is also preparing for higher operating costs. Chief Financial Officer Michael Leskinen said some flights planned for December will no longer operate because of elevated fuel prices.
“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 at the conference. He added that additional adjustments could be made during the first quarter and beyond into 2027 if fuel prices stay high.
Still, United’s booking trends remain encouraging. Leskinen described fourth-quarter bookings as “tremendously strong,” citing resilient demand for premium travel, corporate trips and economy seats. He said there is little evidence that travelers are significantly reducing demand because of higher costs.
Southwest Trims Planned Growth
Southwest Airlines has already scaled back part of its expansion plan. Chief Financial Officer Tom Doxey said the carrier has pared back approximately half of the modest year-over-year capacity growth it had planned at the beginning of 2026.
Doxey described capacity reductions as the “natural response” if fuel remains higher for longer. However, a Southwest spokesperson told FOX Business that schedule changes so far have been minimal. The company said Doxey was making an illustrative point rather than announcing a major new reduction.
Stronger-than-expected fall bookings have helped Southwest offset some of the pressure from higher fuel costs. The airline has maintained its third-quarter earnings guidance, according to Reuters.
What Rising Fuel Costs Could Mean for Travelers
Airlines do not always pass every increase directly to passengers. Carriers may instead adjust routes, reduce capacity, delay expansion plans or use fuel hedging and other financial strategies to manage expenses. However, sustained fuel inflation can eventually place upward pressure on ticket prices.
- Fewer flight options: Airlines may remove lower-demand routes or reduce seasonal service.
- Higher airfare pressure: Reduced capacity can make some seats more expensive, particularly during busy travel periods.
- Schedule changes: Travelers may see cancellations or revised departure times as airlines respond to operating costs.
- Resilient demand: Strong premium, corporate and economy bookings could limit the scale of reductions.
For now, airline executives say demand remains solid, but the fuel market has become a critical variable. If prices stabilize, carriers may avoid deeper cuts. If costs continue climbing, travelers could face fewer choices and more expensive tickets heading into the holiday season and 2027.
Frequently Asked Questions About Fuel and Flight Cuts
Why are airlines cutting or adjusting flights?
Airlines are adjusting schedules because higher jet fuel prices increase operating costs. Reducing capacity can help carriers protect earnings when fuel remains expensive.
How much did the global average jet fuel price rise?
The global average jet fuel price rose 6.1% week over week to $181.46 per barrel last week, according to the International Air Transport Association.
Which airlines announced capacity changes?
American Airlines said it would continue adjusting capacity, United Airlines plans to remove some December flights, and Southwest Airlines has reduced part of its planned 2026 capacity growth.
Will higher fuel prices make airfare more expensive?
Higher fuel prices can add pressure to airfare, especially when airlines reduce capacity. The final impact will depend on fuel prices, demand and available seats.
