Fuel costs force airline cuts

American, United, and Southwest announced this week they're cutting their least profitable routes as jet fuel climbs to $4.71 per gallon, more than double the cost a year ago.

“You're just going to want to pull a little capacity out when we see a rise in fuel like we're seeing right now.”

American adds $1 billion in costs

American Airlines CFO Devon May said the fuel spike has added $1 billion to the company's projected fourth-quarter expenses, forcing it to cut some December flights and plan for less growth next year.

Southwest and United follow suit

Southwest cut its capacity growth projection in half to 1-1.5% due to fuel costs. United's CFO said some routes near the bottom of its profitability curve no longer make financial sense in a higher fuel environment.

“There's some marginal routes that don't make sense in a higher fuel environment, so we cut them.”

Travelers face fewer options

Fewer routes mean fewer flight choices, less convenient times to fly, and more layovers instead of nonstop trips for American travelers already paying 23.4% more for airfare than a year ago.

Iran oil shock hits global airlines

War in Iran has choked off global oil supply, hitting jet fuel particularly hard. United and American spent $8.2 billion and $7.8 billion on fuel in the first six months of 2026, up 49% from a year earlier.

European budget airlines also squeezed

Ryanair, one of Europe's largest budget airlines, cut its full-year passenger forecast from 216 million to 214 million. CEO Michael O'Leary warned oil prices could hike up the airline's famously cheap European flights.