United Airlines CEO Kirby Says Elevated Fuel Costs Can Be Passed to Passengers Through 2027
Why It MattersThe comments signal a structural shift toward sustained pricing power across full-service carriers, driven by reduced domestic capacity and higher operating costs rather than temporary fuel spikes.
United Airlines CEO Scott Kirby said he expects oil prices to gradually decline through 2027 while remaining higher than early 2026 levels, allowing airlines to pass those elevated fuel costs onto passengers through sustained airfare increases. Speaking on CNBC ahead of United's announcement of new international routes at Newark, Kirby said his base case is that oil "gradually declines into 2027" while staying above prior levels.
Airfares have already risen more than 20% this year amid surging oil prices tied to the Iran war. Kirby said higher maintenance, labor, and airport fees, combined with reduced domestic capacity following Spirit Airlines' collapse, have given carriers greater pricing power, effectively ending ultra-cheap fares such as $9 tickets to Central America.
United is launching 10 new international routes, including to Okinawa and Ljubljana, and is betting on extended travel seasons as heatwaves push peak demand for southern Europe into October. Wall Street analysts remain skeptical, warning that planned double-digit capacity growth from carriers including United and American Airlines could undermine fare increases.
