United Airlines CEO Scott Kirby said Wednesday that he expects a 15%-20% increase in ticket prices as the aviation industry struggles with jet fuel shortages and surging oil prices amid the Iran war.
“Yields need to increase by about 15% to 20%,” Kirby said on the company’s earnings call for the first quarter of 2026. He noted fuel prices could remain elevated for a longer period.
Kirby added that the airline wants to recover the full increase in fuel costs “as quickly as possible.”
The executive also said United has not yet seen a drop in demand, but higher airfares could soon pose a significant burden on customers as the Iran war continues to disrupt global oil markets.
Jet fuel prices have more than doubled from around $100 to over $200 per barrel since the United States attacked Iran in late February. The costs have slightly eased this month.
The price bump is tied to the world’s access to the Strait of Hormuz, or the lack thereof. The waterway, a critical oil chokepoint that sits just south of Iran, was responsible for transporting around 20 million to 21 million barrels of oil and petroleum products per day. About 11 million barrels were taken offline or otherwise disrupted due to the unresolved geopolitical tensions between the U.S. and Iran.
IRAN FIRES ON MULTIPLE SHIPS IN STRAIT OF HORMUZ AFTER CEASEFIRE EXTENSION
The narrow strait largely remains closed to commercial vessels, although a few ships have passed through the body of water. Iran continues to regulate maritime traffic in the Strait of Hormuz while the Navy maintains its blockade on Tehran’s ports and vessels.
President Donald Trump extended the ceasefire with Iran on Tuesday at the request of Pakistan. The Islamic regime has attacked at least three ships since the ceasefire extension took effect.