American Airlines may have to alter its future flight plans if fuel prices stay elevated, Chief Executive Robert Isom said Wednesday, as the carrier leans on stronger fares and demand to offset higher expenses. Speaking at a Morgan Stanley conference, Isom said the airline was confident in its forecast for third-quarter revenue growth of 16% to 19%, and he expects most of the recent revenue improvement to persist. Chief Financial Officer Devon May said American expects higher fuel prices to add about $1 billion to its costs in the fourth quarter, with each additional penny in fuel costs translating into roughly $10 million in expenses. United Airlines also expects to adjust its operations if fuel prices remain high, with Chief Financial Officer Mike Leskinen saying changes could extend into the first quarter and beyond in 2027 and that some December flights would not operate; United had already reduced scheduled flights by 5% in the second and third quarters, targeting weaker off-peak routes and cutting service at Chicago O'Hare. American has benefited from higher fares and premium products, including increased revenue from the front of its aircraft, helping offset part of the fuel cost increase.
American Airlines GroupHigher fuel prices adding about $1 billion to Q4 costs may force American to alter future flight capacity.
United Airlines Holdings IncUnited expects to adjust operations and cut some December flights if elevated fuel prices persist.
