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Sen. Joni Ernst, R-Iowa, discusses President Donald Trump’s Iran strategy as lawmakers pursue a $200 billion Pentagon funding push on ‘Mornings with Maria.’<\/p>\n
United Airlines is accelerating its sweeping push into premium travel as surging fuel costs driven by the conflict with Iran drive oil prices higher and put downward pressure on profits.<\/p>\n
The carrier warned oil could remain above $100 a barrel through 2027 and reach as high as $175, a scenario that would increase its annual fuel bill by roughly $11 billion \u2014 more than double its best-ever profit, CEO Scott Kirby said.<\/p>\n
United plans to cut about five percentage points of capacity this year while expanding higher-margin premium seating, betting wealthier travelers and corporate customers will continue paying elevated fares.<\/p>\n
Passengers in United’s Elevated Premium Plus seating. (United Airlines)<\/p>\n
The airline also expects to take delivery of more than 250 aircraft by April 2028 \u2013 the most by any airline over a two-year period \u2013 as it builds out premium offerings across its network.<\/p>\n
A STATE-BY-STATE LOOK AT GAS PRICES AS IRAN CONFLICT PUSHES OIL HIGHER<\/p>\n
“We’ve positioned ourselves to get through these storms that are inevitable, stay focused on the long term and keep investing for the long term,” Kirby said.<\/p>\n
New Airbus A321neo “Coastliner” and A321XLR aircraft will feature lie-flat Polaris seats and larger premium cabins, significantly increasing high-end capacity. The A321XLR alone will double premium seating compared with the older Boeing 757 jets it is replacing.<\/p>\n
A United Airlines Airbus A321 “Coastliner” jet. (United Airlines)<\/p>\n
United said the expansion will leave it with nearly twice as many lie-flat seats as its closest competitor, reflecting a broader industry shift toward higher-paying customers who are less sensitive to rising prices.<\/p>\n
Andrew Nocella, United’s chief commercial officer, said demand remains strong.<\/p>\n
“I can tell you that the environment is strong,” Nocella said. “We’ve been able to pass through many of the price increases necessary to cover” rising fuel costs.<\/p>\n
A passenger in United Airlines’ XLR Polaris Studio seating. (United Airlines)<\/p>\n
United has already increased premium seats per North American departure by about 40% since 2021 while hiring more than 60,000 employees and overhauling much of its fleet.<\/p>\n
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By cutting less profitable flying and expanding premium capacity, United is aiming to protect margins and offset billions in higher fuel costs without significantly weakening demand.<\/p>\n
Reuters contributed to this report.\u00a0<\/p>\n
#United #doubles #premium #travel #fuel #costs #surge #Iran #conflict<\/p>\n","protected":false},"excerpt":{"rendered":"
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