United CEO Sees Fuel Easing by 2027 but Fares Staying High

United Airlines CEO Scott Kirby said on CNBC that he expects oil prices to ease gradually into 2027, though fuel costs will remain above historical levels. His comments came Tuesday before the carrier announced a batch of new international routes at Newark.

Kirby said his base case is for oil to decline gradually through next year, but remain higher than it was before the recent surge. He indicated that the elevated fuel environment would keep fares at their current levels for the foreseeable future.

The airline industry has been squeezed by surging oil prices tied to the Iran war, which have pushed carriers to raise ticket prices. United and other airlines have increased airfares by more than 20% this year to offset the jump in fuel costs.

Kirby also expressed confidence that strong travel demand will continue to support pricing, although he acknowledged that additional capacity could eventually put pressure on fares.

The new international routes from Newark signal United's bet on sustained demand even as fuel costs remain high.