United Airlines Chief Executive Officer Scott Kirby said the carrier expects gradual fare increases to begin in the first half of 2027, driven by sustained demand and the need to restore profitability.
Kirby, speaking at an event in Newark, New Jersey, on Tuesday, noted that airfare trends remain supportive despite broader economic and geopolitical uncertainties. He emphasized that demand has not softened, with travel activity remaining robust across all segments. "There really hasn’t even been a blip in demand," Kirby said. "Demand is very, very strong across the board."
U.S. airline fares climbed 25.5% in July compared with a year earlier, according to Labor Department data. Over the April-to-July period, average airfares rose nearly 25%, though Kirby indicated that current levels still trail pre-pandemic benchmarks by about 13% after adjusting for inflation.
The CEO also addressed fuel costs, which have remained elevated near $4 per gallon. He expects United to fully recover higher fuel expenses by the fourth quarter of 2026, leveraging strong demand to offset the impact. "We’ll see," Kirby said. "But given the strength in demand, I think we’ll still recover 100% in the fourth quarter."
United’s aircraft delivery schedule has also stabilized, with Kirby stating that deliveries are "back largely on pace" after earlier supply-chain disruptions delayed planned orders. The company has not revised its long-term fleet plans amid these adjustments.
Kirby’s remarks underscore a broader industry trend of cautious fare adjustments, balancing cost recovery with competitive pricing amid steady travel demand.
