United Airlines: Fare Increases Are Here to Stay Even If Oil Prices Drop

United Airlines executives stated during the Q1 2026 earnings call that recent fare increases are likely to remain even if jet fuel prices normalize. CEO Scott Kirby noted that the longer elevated fuel costs persist, the higher the probability that pricing increases hold, estimating that 20% of increases would remain if conditions normalized immediately, potentially rising to 80% if the trend continues. The airline implemented five price increases and raised baggage fees in late Q1 to offset fuel costs. Yields rose 4% YoY in Jan/Feb, 12% in early March, and 18% in late March. United expects to offset 40-50% of increased fuel costs through ticket prices in Q2, rising to 85-100% by Q4. Chief Commercial Officer Andrew Nocella attributed this to strong demand and capacity adjustments