- American Airlines said about one billion dollars in extra fourth-quarter fuel costs is forcing capacity adjustments.
- United plans to remove some December flights and may make more cuts in the first quarter and into 2027.
- Southwest and JetBlue also reduced growth plans as airlines protect margins over adding seats.
American Airlines and United Airlines said Wednesday, September 16, 2026, that higher fuel prices are forcing them to trim planned flying, with United warning that some December flights will no longer operate. Executives made the announcements at the Morgan Stanley Laguna Conference in California.
American expects about $1 billion in additional fourth-quarter fuel costs. United said it could make more schedule changes if fuel prices stay elevated.
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American Chief Executive Officer Robert Isom tied future capacity decisions directly to fuel prices.
“If fuel prices remain as high as they are right now, I think that that’s going to require some adjustments in terms of our capacity planning as we take a look out into the future.”
Chief Financial Officer Devon May said fourth-quarter fuel prices were running about $1 a gallon above the level assumed in July. Each 1-cent move in fuel changes the carrier’s quarterly costs by about $10 million, he said, producing roughly $1 billion in added costs for the quarter.
Demand remains strong. May said American can absorb some price increases, while United Chief Financial Officer Mike Leskinen described bookings as “tremendously strong.” Fuel, rather than weak demand, is driving the planning changes.
Global conflicts in Ukraine and the Middle East have pushed Brent crude up almost 70% this year. The ongoing US-Iran war has added to the pressure on airline margins.
United is removing December flights before considering deeper cuts
United plans to remove some flights that had been scheduled for December. Leskinen said higher fuel costs made marginal routes less attractive.
The airline is also looking beyond the holiday season. If fuel remains high, it could adjust flying in the first quarter and into 2027.
“We are not flying to maximize market share. We’re flying to maximize profitability and free cash generation,” Leskinen said.
United expects to recover the higher fuel expense through pricing, but Leskinen said that recovery would come with a lag. The airline sees about $6 billion in added fuel costs for 2026.
It had already planned earlier reductions of 5% in second- and third-quarter flights. Those cuts focused on weaker off-peak routes and some operations at Chicago O’Hare International Airport.
| Carrier | Capacity or schedule change | Timing |
|---|---|---|
| United | Some planned flights removed | December, with possible changes in the first quarter and 2027 |
| Southwest | 2026 growth reduced from about 2% to 3% to roughly half that level | 2026 |
| JetBlue Airways | Growth outlook reduced from 3% to 6% to 1.5% to 3.5% | Third quarter |
Southwest and JetBlue are also trading growth for margin protection
Southwest Chief Financial Officer Tom Doxey said the carrier already cut its planned 2026 capacity growth by roughly half because of higher fuel costs. Further reductions would be the “natural response” if fuel stays high.
The original Southwest target called for 2026 capacity growth of about 2% to 3%. The airline later reduced that plan to roughly half the initial level.
JetBlue also lowered its third-quarter capacity growth outlook to 1.5% to 3.5%, down from 3% to 6%. The New York-based carrier is prioritizing profitability over market share.
The capacity decisions put margin protection ahead of adding seats. Airlines are keeping demand in view while removing flying that no longer clears their profit test.
American has also signaled that its schedule is not fixed for the rest of the year. May said the carrier would continue adjusting capacity late in the fourth quarter because of fuel costs.
United’s warning reaches further. Leskinen said additional changes could arrive in the first quarter and beyond into 2027 if fuel remains high.
The next decisions will therefore extend beyond December bookings. Fuel prices will shape late-fourth-quarter schedules first, followed by the carriers’ plans for the first quarter and 2027.
