Your flight options may shrink as airlines face rising costs

CHICAGO — American Airlines, United Airlines and Southwest Airlines are scaling back planned flight schedules following a recent surge in fuel prices that threatens their profits, executives said Wednesday.

The U.S. airline industry has been leaning on tighter capacity, resilient demand and higher fares to absorb a runup in fuel costs since the Iran war began.

Executives at all three carriers said on Wednesday that demand remained strong even after price increases, helping them offset much of the higher cost of jet fuel. But the latest jump in fuel is prompting them to reassess less-profitable routes late this year and, potentially, into 2027.

American said the latest jump in fuel prices alone was adding about $1 billion to its fourth-quarter costs, while United said some flights planned for December would no longer operate and that further adjustments could follow in the first quarter and into 2027.

Southwest said it had already cut its planned 2026 capacity growth roughly in half because of higher fuel prices and could trim further if fuel costs remained elevated.

The fuel shock is continuing to reshape airline capacity, despite resilient demand, and shows how the industry's broader response is to protect pricing where demand allows…

Original source: https://www.usatoday.com/travel/