Overview
- At a Morgan Stanley investors conference Wednesday, American CEO Robert Isom and United CFO Mike Leskinen said sustained high fuel would require capacity adjustments in the fourth quarter and could extend into early 2027.
- American estimates about $1 billion in additional fuel costs for the fourth quarter and has already cut its guidance twice this year after absorbing several billion dollars in fuel hits.
- United expects roughly $6 billion in added fuel costs for 2026, has removed some December flights, and says it will prioritize profitability and free‑cash‑flow over defending market share.
- Southwest and JetBlue have pared planned capacity growth and carriers say the most likely cuts will target low‑demand, off‑peak and late‑night frequencies that become unprofitable when fuel rises.
- With demand remaining strong, airlines are both raising fares and trimming flights, a combination that is likely to reduce choices for travelers and keep average ticket prices higher into late 2026 and possibly 2027.