What happened
During its Q1 2026 earnings call, United Airlines executives revealed that the airline has implemented five price increases and raised baggage fees to offset soaring jet fuel costs. Yields rose from 4% year-over-year in Jan/Feb to 18% in late March. United expects to offset 40-50% of fuel costs via fares in Q2, rising to 85-100% by Q4. CEO Scott Kirby noted that the longer elevated fuel prices persist, the more likely fare increases are to stick, estimating that even if conditions normalize immediately, 20% of the increase would remain, potentially growing to 80% if the trend continues. Chief Commercial Officer Andrew Nocella attributed this to strong demand and capacity adjustments