"Jet fuel prices have more than doubled in the last three weeks, representing an additional $11 billion in annual costs if prices stay at that level. United spent $11.4 billion last year on fuel, meaning current prices could send that total expense past $20 billion this year."
"Kirby noted that its best year ever saw earnings of $5 billion. However, he acknowledged it will be difficult for United to continue passing on the cost of fuel if oil stays higher for longer."
"Brent crude rose 3.26% to close at $112.19 per barrel, and U.S. oil gained 2.27% to settle at $98.32. Analysts have warned that prices could reach $150 or even $200 a barrel if it doesn't reopen soon."
The U.S.-Israel war on Iran has caused major disruptions in the airline industry, particularly affecting United Airlines. Oil prices have surged, with jet fuel costs doubling recently, potentially increasing annual expenses by $11 billion. United's fuel costs could exceed $20 billion this year, despite a strong cash position and record revenue weeks. CEO Scott Kirby anticipates oil prices may remain high through 2027, complicating the airline's ability to manage fuel costs. Analysts warn that oil prices could escalate further if key routes remain closed.
Read at Fortune
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