American, United and Southwest are trimming capacity or schedules as jet fuel costs rise, putting fewer flights and higher expenses on carriers’ ledgers.
American Airlines, United Airlines and Southwest Airlines are changing capacity or schedules after fuel costs rose, Fox Business reported Wednesday.
Executives described the changes at Morgan Stanley’s 14th Annual Laguna Conference. United plans to drop some December flights, while American expects more fourth-quarter capacity adjustments.
The global average jet fuel price rose 6.1% in one week to $181.46 per barrel, based on an International Air Transport Association figure cited by Fox Business.
That increase is already changing business plans. Capacity is the number of seats an airline intends to offer, and cutting it can mean fewer flights or smaller growth plans.
American Airlines Chief Financial Officer Devon May said fourth-quarter jet fuel prices were running about $1 per gallon above the carrier’s July projection. That difference added roughly $1 billion to American’s projected fuel bill.
May said the airline still felt good about its third-quarter performance. But he drew a clear line between that period and the fuel pressure now facing the company.
“What's happened in the last four weeks, though is fuel's run up probably $1 a gallon or something like that for the fourth quarter alone,” May said.
American expects third-quarter revenue to rise between 16% and 19% from a year earlier. CEO Robert Isom said the carrier had recovered much of the higher fuel expense, though the airline still plans more capacity changes later in the fourth quarter.
The contrast matters. Stronger revenue can help absorb higher costs, but it does not make those costs disappear. American is still changing its plans even as executives point to revenue growth.
United Airlines offered the clearest example of a direct schedule reduction. Chief Financial Officer Michael Leskinen said the carrier will not operate some December flights that it previously expected to fly.
“As you look into the fourth quarter, there'll be some flights in December that we won't fly that we thought we were going to fly,” Leskinen said.
United could make more adjustments during the first quarter and beyond into 2027 if fuel prices remain high, Leskinen said. The company did not identify the routes affected by the December changes.
Demand, however, had not collapsed. Leskinen said bookings continued as expected, with “very little evidence of demand destruction.”
That leaves United responding to higher costs rather than a broad fall in bookings. Customers may still want to fly, but the carrier must decide whether each planned flight makes financial sense at the new fuel price.
Southwest Airlines Chief Financial Officer Tom Doxey said the company had removed about half of its planned year-over-year capacity growth for 2026. He described trimming capacity as the natural response if fuel stays higher for longer.
A Southwest spokesperson added an important qualification. The company said its schedule changes had been minimal and described Doxey’s remarks as an “illustrative point,” rather than an action the airline had already taken.
Southwest also said it could maintain its third-quarter earnings guidance. Even so, reducing roughly half of planned capacity growth shows how quickly rising fuel expenses can narrow an airline’s options.
The three carriers are not making identical moves. United identified flights it will drop, American plans broader capacity adjustments, and Southwest has pared back expected growth while stressing that current schedule changes remain limited.
Passengers still lack several key details. The airlines did not identify the affected routes, and United did not specify which December flights will disappear.
But the direction is plain: higher fuel costs are moving from corporate ledgers into flight schedules. Markets impose consequences, no matter how much anyone wishes otherwise.