United Airlines warns that rising oil prices will put pressure on the aviation industry.

Investing.com – United Airlines (NASDAQ: UAL) in the US warns that rising fuel costs related to conflicts with Iran are beginning to put pressure on the airline industry, despite strong travel demand.

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In an internal message to employees, United Airlines CEO Scott Kirby stated that the airline is preparing for high oil prices, which could increase operating costs and force the company to adjust capacity and pricing.

Kirby said that United Airlines is preparing for oil prices potentially rising to $175 per barrel and remaining high until 2027, though he added that the situation might not be that severe.

He mentioned that the airline will cut about 5% of its planned capacity in the short term, including reducing off-peak flights and suspending some international routes, to cope with higher fuel costs.

He also added that United Airlines will continue long-term investments, including aircraft deliveries and infrastructure expansion, to gain an advantage amid sustained high oil prices.

As this warning is issued, the global oil market continues to fluctuate due to escalating tensions in the Middle East. Analysts say that the airline’s near-term outlook will depend on how long supply disruptions last and whether crude oil prices stabilize.

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