Travel / news
United Expects to Recover Full Jet Fuel Costs as Premium Demand Holds
United Airlines' finance chief says the carrier still expects to offset 100% of its jet fuel expenses through higher fares by year-end, even after a sharp run-up in fuel prices, pointing to traveler appetite for premium seats and onboard amenities.
Chief financial officer Michael Leskinen said the airline is sticking to that target despite the recent climb in fuel costs, speaking Wednesday at the Morgan Stanley Laguna investor conference.
Leskinen noted that roughly 35% of United's fourth-quarter tickets have already been sold, meaning those fares cannot be repriced to reflect the higher fuel bill. He described the result as a lag that analysts should factor into their models.
The carrier is leaning on demand for premium cabins and extras such as Starlink connectivity, betting that passengers will keep paying more for a better onboard experience. Leskinen said nothing has emerged that would prevent United from passing along the fuel expense.
Fuel prices have risen quickly in recent weeks, according to the CFO's remarks, adding pressure to an industry where fuel is a major operating cost.
The comments point to a travel market in which carriers increasingly look to premium seating and service upgrades, rather than base fares alone, to absorb rising expenses.