# United Cuts Flights as CEO Prepares for High Oil Prices Until 2027

_Mar 21 11:07_

Tags: United Airlines, US, airline, industry news

United Airlines CEO Scott Kirby announced flight cuts and strategic adjustments in an employee memo, citing high oil prices and conflict with Iran. The company assumes oil prices will remain elevated until the end of 2027

## Summary

United Airlines CEO Scott Kirby sent a memo to employees addressing the impact of the conflict with Iran and spike in fuel prices. He outlined a strategy to turn high oil prices into an advantage by leveraging United's strong balance sheet and cash reserves. Key points include:
- United has three times the cash it had at the start of COVID and the highest credit rating in over 30 years.
- Jet fuel prices have more than doubled in the last three weeks, potentially adding $11B in annual expenses.
- United is planning for oil prices to stay high, assuming they will not return to $100/barrel until the end of 2027.
- The company is cutting flights in the short term but will not furlough employees or defer aircraft orders.
- Demand remains strong, with the 10 biggest booked revenue weeks in history occurring in the last 10 weeks.
- United aims to stay ahead of competitors who may face more stress from higher fuel costs

## Why it matters

Affects United Airlines loyalty members and route planners.

## Sources cited

- [One Mile at a Time](https://onemileatatime.com/news/united-high-oil-prices-advantage-cuts-flights) — United Hopes To Turn High Oil Prices Into An Advantage, As It Cuts Flights

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