With the average price of jet fuel sitting at around $4.53 a gallon as of Friday afternoon, we heard some of the first commentary from airline executives on the recent increase in fuel prices. The bottom line is to expect more cuts to capacity and an increase in airfares. 

After a summer where fuel prices moderated, soaring costs have once again become a concern for the airline industry as attacks during the Iran war have intensified. 

American CEO Robert Isom said at the Morgan Stanley Laguna investor conference earlier this week that the carrier was expecting to slow growth in 2027. Devon May, the carrier’s CFO, said third and fourth quarter capacity would need to be readjusted.

Southwest CFO Tom Doxey said at the same investor conference that there is some room to increase airfares. 

“What we have seen is the ability to recover a good portion of that,” Doxey said, referring to recovering fuel costs. “I would expect that would continue if fuel remains high, and if it remains higher for longer, there will need to be more recovery that would occur there on the revenue side as well.”

United CFO Michael Leskinen said the carrier would still be able to recover 100% of its fuel costs by the end of the year.