United CEO on Fares in 2027: Fuel Stays ‘Elevated,’ But We Can ‘Pass All of That On’

Skift Take United is betting demand stays strong. But at some point, added capacity will put pressure on prices. United Airlines CEO Scott Kirby said he expects fuel prices to gradually decline next year, however fares will stay up. “My base case would be that oil sort of gradually declines,” he said on CNBC before United unveiled a set of new international routes at Newark on Tuesday. “It stays higher than it was, but that oil gradually declines into 2027.” Surging oil prices caused by the Iran war have eaten into airlines’ profits and have caused them to increase airfares in response. This year, airfares rose by more than 20% to offset fuel costs. “I don't think