United Airlines is considering raising ticket prices by 15% to 20% to offset the price of jet fuel that has spiked during the U.S.-Israel war with Iran.
The Chicago-based company is seeking to recoup the higher cost of fuel “as quickly as possible,” United CEO Scott Kirby said in a Wednesday earnings call.
“To recover 100% of fuel costs, yields need to increase by about 15% to 20%, and we are assuming that fuel may remain higher for longer,” Kirby said.
The cost of fuel has remained elevated during the war with Iran, and the disruption to oil tankers passing through the Straight of Hormuz off Iran’s coast.
But ticket prices on United have already been increasing.
The company reported ticket yields rose 12% year-over-year in early March. That rose to 18% later that month.
Fuel prices are expected to average around $4.30 per gallon in the current quarter, the company reported.