United Airlines CEO Warns: Fuel Crisis May Lock in Higher Airfare Even After Prices Drop

As the U.S.-Iran fuel crisis continues to disrupt global markets, travelers hoping for relief on airline ticket prices may be disappointed. United Airlines CEO Scott Kirby has indicated that airlines could maintain elevated fares even after fuel costs decline, potentially keeping airfare higher than pre-crisis levels.

Fuel Crisis Drives Airline Costs—and Ticket Prices—Higher

This week, United Airlines (Nasdaq: UAL) reported its Q1 2026 earnings, revealing a mixed but largely positive financial performance. Total operating revenue increased by 10.6% year over year to $14.6 billion, while capacity rose by 3.4%. Diluted earnings per share surged by 85% year-over-year to $2.14.

However, the airline also faced significant cost pressures. United paid an average fuel price of $2.78 per gallon during the quarter, resulting in $340 million more in fuel expenses compared to the same period last year. To offset these rising costs, United, like other airlines, has implemented two primary strategies: increasing baggage fees and raising ticket prices.

Summer Fare Hikes Could Reach 15%–20%

Kirby warned that travelers should brace for even higher fares this summer, with potential increases of 15% to 20%. While understandable given the geopolitical and economic climate, this move has left many consumers questioning whether prices will ever return to normal once the fuel crisis subsides.

Will Airlines Keep Prices High Even After Fuel Costs Drop?

On a financial call with reporters on Wednesday, April 22, Kirby addressed concerns about whether United would maintain its higher ticket prices to bolster profits. His response suggests that elevated fares could become the new normal—at least in part.

“I think it is more likely than not this time, and certainly the longer this [rising fuel prices] lasts, the higher the probability goes that the pricing increases hold.”

Kirby clarified that United does not intend to retain 100% of the price increases indefinitely. Instead, the airline plans to normalize fares gradually. He estimated that if conditions returned to mid-February levels, United would retain 20% of the price increase next year, with that figure potentially rising to 80% over time, depending on how long the fuel crisis persists.

A spokesperson for United Airlines declined to provide further comment on the matter.

Regulatory Scrutiny Looms Over Airline Pricing

As airlines face growing criticism for passing on fuel costs to consumers, lawmakers have begun warning carriers against maintaining artificially high prices once the crisis abates. The potential for sustained elevated fares has raised concerns about consumer protection and market fairness.