Airlines May Cut Capacity Amid Surging Fuel Costs

By the Editorial Team · Thursday, September 17, 2026

United Airlines, American Airlines, and Southwest Airlines have indicated they may reduce flight capacity and raise fares if high jet fuel prices persist. These adjustments reflect the airlines' focus on maintaining profitability amid rising costs and geopolitical tensions, potentially impacting flight availability and ticket prices through 2027.

Major U.S. airlines are signaling potential adjustments to their operations as rising fuel costs continue to pressure the aviation industry. Executives from United Airlines Holdings Inc., American Airlines Group Inc., and Southwest Airlines Co. addressed the challenges posed by surging jet fuel prices during a financial conference in California on Wednesday.

American Airlines CEO Robert Isom indicated that if fuel prices remain elevated, the carrier may need to reduce its flight capacity in the fourth quarter. “If fuel prices remain as high as they are right now, I think that that’s going to require some adjustments in terms of our capacity planning as we take a look out into the future,” he said at the Morgan Stanley conference.

Echoing a similar position, United Airlines Chief Financial Officer Mike Leskinen noted that the company is prepared to modify its capacity plans beyond the immediate term. “If fuel remains high, we will make some adjustments into the first quarter and beyond into 2027,” Leskinen said. He emphasized that United’s strategy prioritizes profitability and free cash flow over market share growth. “We are not flying to maximize market share, we’re flying to maximize profitability and free cash generation,” he added.

Meanwhile, Southwest Airlines CFO Tom Doxey highlighted the potential for fare increases amid the elevated fuel costs and geopolitical tensions related to the ongoing US-Iran conflict. He also acknowledged that further capacity reductions could occur if fuel prices do not decline. “We see room to go on fare increases,” Doxey said, referencing the airline’s approach to navigating the higher operating expenses.

Fuel prices have risen globally due to a combination of supply chain disruptions, geopolitical instability, and increased demand as air travel rebounds from pandemic lows. The airlines’ comments suggest that carriers are balancing cost pressures with efforts to maintain profitability, potentially affecting flight availability and ticket prices for travelers in the coming quarters.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.