Zincwarrior
Diamond Member
United Airlines CEO is preparing for the contingency of $100 oil through the remainder of 2026 and into 2027. Given the amount of damage already, thats probably prudent.
United CEO preparing for $100+ oil into next year
by Sarah Davis - 03/24/26 2:02 PM ETThe CEO of United Airlines said his company is bracing for a long-term hike in fuel prices resulting from continuing military operations in the Middle East.
The price of Brent crude oil has surged to over $100 a barrel following the Trump administrationâs launch of strikes on Iran. Iranian counterstrikes on U.S. bases and energy fields in the Gulf states have effectively closed the Strait of Hormuz, a major global oil trading corridor.
United CEO Scott Kirby addressed the impact of the surge in oil barrel prices on the airline industry in an interview with CNBC on Tuesday morning, saying he expects high prices to continue into next year.
âI think if you sort of start looking through whatâs happening in the Middle East and how long itâs going to take to recover, even once the Straits of Hormuz are open, it seems like a reasonable assumption for us to make, and so we want to plan for something like that,â Kirby told CNBCâs Phil LeBeau.
âWe hope itâs better, but the cost of planning for something like that is pretty small,â the CEO continued. âWeâre going to do a little less flying than we otherwise would, willing to leave a little bit of demand on the table if oil prices are lower, but want to be prepared for a scenario where oil prices are higher for longer.â