$AAL CEO Warns of Capacity Cuts as Jet Fuel Prices Stay Elevated

Jet fuel averaged $4.53 per gallon for the week ending September 18, nearly 80% higher than a year ago, driven by the war in Iran and the closure of the Strait of Hormuz following the U.S.-Israeli strike on Iran in late February 2026.
$AAL CEO Robert Isom said sustained high fuel prices "will require some adjustments in terms of our capacity planning," according to Airline Geeks. The airline has already cut several Middle East routes and scaled back domestic flights, including suspending LAX routes from cities like Cleveland and Pittsburgh. Isom still expects Q3 revenue to rise 16-19%, helped by premium demand, with 30% of high-fare seats generating 50% of total revenue.
$UAL CFO Michael Leskinen said the airline is "flying to maximize profitability and free cash generation," not market share, while $LUV CFO Tom Doxey said higher-for-longer fuel is a "natural response" to trim capacity.
U.S. average flight prices in June-August were 25% higher than the same months in 2025, per CPI data.