Boeing and Korean Air Finalize 103-Aircraft Order Worth $36.2 Billion

American Airlines, United Airlines and Southwest Airlines are scaling back or reconsidering planned flight schedules as jet fuel prices surge, a move that could leave travelers with fewer flight options and potentially higher fares heading into the holiday season. For American, the latest jump in fuel prices alone is expected to add roughly $1 billion to its fourth-quarter fuel costs compared with the assumptions it made in July, after fourth-quarter fuel prices rose by roughly $1 per gallon from that July level, according to CFO Devon May, who noted that every one-cent change in fuel prices affects quarterly costs by about $10 million. United has already said some flights scheduled for December will no longer operate and warned of additional adjustments in the first quarter of 2027 and beyond if fuel prices remain elevated, while Southwest has roughly halved its planned 2026 capacity growth from an original target of about 2% to 3%, with its CFO saying further reductions could follow. The International Air Transport Association reported the global average jet fuel price rose 7.4% to $194.90/bbl from the week before, and its June outlook noted that airlines could rationalize capacity by trimming less-profitable routes or reducing flight frequencies. Executives from all three carriers said demand has remained resilient despite higher fares, and that combination of strong demand and less available capacity can give airlines more ability to maintain or increase fares.

Alaska Air Group, operating as Alaska Airlines, is expanding its Hawaii network by introducing daily Boeing 737-800 service on select Honolulu-Kahului flights beginning Oct. 3, 2026. The supplemental service will include three Honolulu-Kahului round trips, adding passenger and cargo capacity while helping maintain the frequency and connectivity of Neighbor Island operations. The 737-800 aircraft will feature reclining leather seats, in-seat power, USB charging and additional premium seating options, along with upgrade opportunities for Atmos Rewards and Huakai by Hawaiian members. Hawaiian Airlines plans to retire its 717 fleet in 2028 and transition to Hawaiian-branded 737 aircraft with premium interiors and fast, free Starlink Wi-Fi. Also beginning Oct. 3, Neighbor Island travelers will need to check in and drop checked bags at least 50 minutes before departure, up from the current 30 minutes.