United Airlines CEO Warns Fuel Spike Will Trigger Route Cuts and Wider Airline Losses

United Airlines ($UAL) CEO Scott Kirby warned that six to ten U.S. carriers are poised to lose money this year as jet fuel prices average $3.90 per gallon—up 60.3% year-over-year. Speaking to CNBC following the company's Q3 earnings report, Kirby projected that unprofitable airlines will inevitably cut loss-making routes, reducing flight availability and price competition, particularly in smaller regional markets.
Despite an $8 billion annualized fuel cost headwind across the carrier, United posted record Q3 operating revenue of $17.9 billion, up 17% year-over-year, alongside an adjusted diluted EPS of $2.54. The airline successfully passed through approximately 72% of the fuel cost increase to passengers while flying a record 49.5 million travelers at an 83.9% seat capacity, bolstered by premium loyalty, operational reliability, and ongoing fleet-wide Starlink Wi-Fi rollouts.
For Q4, United expects total operating revenue growth to exceed 20% year-over-year, though its projected EPS range of $0.50 to $1.50 trails Wall Street consensus of $1.75 due to sustained fuel cost pressures through 2027.