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United Airlines is cutting capacity by ~5% in Q2 and Q3, targeting off-peak routes at Chicago O'Hare as CEO Scott Kirby plans for oil at $175/barrel and above $100 through end of 2027. Jet fuel costs have nearly doubled since late February, potentially adding $11B annually. Flights to Tel Aviv and Dubai remain suspended.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02United Airlines said Friday it will reduce scheduled capacity by about 5% in the second
00:07and third quarters as it targets weaker off-peak routes, according to Benzinga.
00:12The airline is trimming flights at Chicago O'Hare, targeting midweek and overnight flights,
00:17and keeping service to Tel Aviv and Dubai suspended.
00:20CEO Scott Kirby said the company is planning for oil to reach $175 per barrel and remain
00:26above $100 until the end of 2027.
00:29He said there is limited downside to preparing for that scenario.
00:32Kirby said fuel costs could rise by about $11 billion annually at those levels.
00:37GIF fuel prices have nearly doubled since late February.
00:40Airlines also face rerouted flights and restricted airspace tied to the conflict.
00:45For all things money, visit Benzinga.com.
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