April 22, 2026
Airfare is rising, and United Airlines says passengers may face higher prices for months.
United told investors it has raised prices five times since the global surge in oil prices drove jet fuel costs up. The carrier was also among the first U.S. airlines to increase checked-bag fees; first-bag charges now begin at $45. Those moves, combined with higher ticket prices, have pushed travel costs up for consumers booking summer trips.
“We are assuming fuel may remain higher for longer,” CEO Scott Kirby said on the company’s first-quarter earnings call, citing uncertainty in the Middle East that helped trigger the worldwide oil-price spike. United Chief Commercial Officer Andrew Nocella added that as consumers continue to pay these prices and airlines grow accustomed to the added revenue, the increases are more likely to stick.
Even if oil eases, price relief for travelers is uncertain. Airlines rarely cut baggage fees once they rise, and while fares fluctuate, United executives signaled that industrywide ticket prices could remain elevated beyond the current fuel crunch. Analysts have also noted that airfares have lagged broader inflation over recent years, creating room for carriers to raise yields after underperforming financially.
Higher fuel costs are already prompting capacity reductions. United plans to cut roughly 5% of flights through year-end, focusing on marginal flying on less popular days (Tuesdays, Wednesdays and Saturdays) and trimming some domestic red-eye service. The carrier said it has not yet seen a notable drop in demand, but travelers should expect cancellations to be announced over the coming week or so, particularly for summer schedules.
Passengers impacted by cancellations have protections: under U.S. Department of Transportation rules, travelers are entitled to a full refund if their flight is canceled, and refunds also apply for significant delays or major schedule changes. United will typically rebook affected customers but travelers may opt for a refund if the alternative itinerary doesn’t work.
Bottom line: higher jet fuel is pushing airlines to pass costs to customers via fares and fees, and carriers’ recent price and fee increases may remain in place for the foreseeable future. TPG is monitoring U.S. and international carriers that are cutting or suspending routes in response to rising fuel prices.
