U.S.-Iran war impact: Major American carrier United Airlines to cut 5 per cent of planned

United Airlines CEO Scott Kirby said ​on Friday the airline will cancel about 5 per cent of planned flights in the short term, as ‌jet fuel ⁠prices ⁠surge due to the Middle East conflict.

"If prices ​stayed at this level, it would mean an extra $11 billion ​in annual expense just for jet fuel," Kirby said in a message to ​employees posted on the company's ⁠website, adding ‌his plans assume oil goes ​to $175 ​per barrel and does not ⁠get back down to $100 per barrel until the ​end of 2027.

The airline's current ​plan is to restore the full schedule this fall, Kirby added.


The airline is cancelling about three percentage points of capacity in off-peak periods during the second ‌and third quarters. It has also pulled services to Ben Gurion International Airport ​in ​Israel and ⁠the Dubai International Airport in UAE, affecting about 1 percentage point of capacity.

The airline will pull ​another percentage point of capacity to Chicago O'Hare International Airport following the Federal Aviation Administration'splans to cut flights this summer.