United starts adjusting capacity to counter oil price hike

United Airlines has started adjusting capacity after disclosing a $340 hike in fuel costs triggered by the Iran war in the first quarter of 2026.

The US carrier noted that oil prices “remain volatile and elevated” versus the start of the year.

Despite recording strong sales in the three months, United has already begun adjusting its schedule for the rest of 2026 to account for higher fuel prices with an expected five-point capacity cut compared to its original plan for the year. 

“As a result, the company expects capacity in the third and fourth quarters of 2026 to be flat to up approximately 2% year-over-year,” a statement said. 

“United will continue to be nimble with capacity, with additional reductions or restored flying as appropriate to meet anticipated demand.”

The update came as the Chicago-based airline achieved its highest first-quarter revenue of $14.6 billion, helped by a 14% rise in demand for premium and business travel. Revenue was 10.6% higher than the same period last year.

Adjusted pre-tax profits came in at $0.5 billion as capacity rose by 3.4% compared to the first three months of last year.

United carried the most passengers in a first quarter in its history and claimed the best on-time departure rate among the eight largest US carriers. 

Chief executive Scott Kirby said: "These are results our employees can be proud of, and they show the resilience of our long-term strategy, even in the face of escalating fuel expense. 

"Our strong financial position and success in winning brand-loyal customers enabled United to quickly make tactical adjustments to higher fuel prices while maintaining our long-term focus."

He added: "Moments of uncertainty for the airline industry may also create opportunity for United. 

"We have demonstrated quarter after quarter that we are built to withstand disruptions, and this moment is no different. We’ll stay nimble in the short term while continuing to grow the airline and invest in our customers, product and people."