Traveling is about to get even more complicated.
Let’s fly!
In the midst of rising fuel prices, not only is airfare getting more expensive, but airlines have started cutting flights in an effort to offset fuel costs. American Airlines, United Airlines, and Southwest Airlines have all scaled back planned flight schedules to try and counter the increased cost of jet fuel, according to USA Today.
The U.S. airline industry has been leaning into tighter capacity, resilient demand, and higher fares to try to absorb the increased fuel costs since the Iran war began.
Southwest Airlines
Executives at all three carriers said that despite an increase in airfare prices, demand still remained strong, which has helped them offset much of the higher cost of jet fuel. However, this latest jump in fuel prices has prompted them to cut less-profitable routes later this year and possibly into 2027.
©United Airlines
American Airlines said the latest increase in fuel prices was adding about $1 billion to its fourth-quarter costs, and United Airlines said some flights planned for December would no longer be operating. Additional adjustments could follow in the first quarter and into 2027.
American Airlines Plane
Southwest shared that it had cut its 2026 capacity growth about in half already due to higher fuel prices and would continue to trim them further if the fuel costs remained elevated.
Southwest Planes at Orlando International Airport
So, it’s not only increased airfare costs we have to worry about, but now, there’s potential that travelers will no longer have as many choices when it comes to flights and routes. The response from the airlines shows they will remove flights when costs rise.
All three carriers’ shares have fallen over the past month as fuel prices have increased. American and United are down around 14% and 15%, respectively, and Southwest has lost about 11%.
American Airlines Plane
If fuel costs remain high, it’s possible that even more routes will be cut. With holiday travel around the corner, this is definitely something to keep an eye on for those who are planning to make trips around the holidays.
Check out more air travel news at the links below!
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