From Business Insider · Kelsey Vlamis · · 1m 40s
Airlines cut holiday flights as fuel costs soar
Major carriers are trimming schedules and raising fares as jet fuel hits $4.53 a gallon and oil surpasses $100 a barrel.
In brief
Major carriers are trimming schedules and raising fares as jet fuel hits $4.53 a gallon and oil surpasses $100 a barrel. Airlines are cutting holiday flights and raising fares as oil prices surge to over one hundred dollars a barrel and jet fuel costs climb to four point fifty-three dollars a gallon. Originally…
Oil prices hit new highs
Oil surged this summer and surpassed one hundred dollars a barrel this month. Jet fuel costs four point fifty-three dollars a gallon as of Thursday.
Airfares already rising sharply
Data from the Bureau of Labor Statistics show airfares rose more than twenty-three percent year-over-year in August. Airlines are cutting flights planned for the holiday season.
United cuts unprofitable routes
Mike Leskinen, CFO of United Airlines, said the company has already cut some routes on the low end of profitability that do not make sense in a higher fuel environment.
“don't make sense in a higher fuel environment”
More cuts coming if fuel stays high
Leskinen said some flights in December will not fly as planned. If fuel remains high, United will make adjustments into the first quarter and beyond into twenty twenty-seven.
“If fuel remains high, we'll make some adjustments into the first quarter and beyond into 2027”
Southwest and American follow suit
Southwest Airlines CFO Tom Doxey and American Airlines CFO Devon May said demand is strong but they will trim capacity and raise fares if high fuel prices persist.
Book now to lock in prices
Sally French, travel analyst at NerdWallet, recommends booking now. The sweet spot for domestic travel is one to three months in advance, or two to eight months for international travel.
“booking now to lock in a good price is best practice”
The main idea
Airlines are cutting holiday flights and raising fares as oil prices surge to over one hundred dollars a barrel and jet fuel costs climb to four point fifty-three dollars a gallon.
