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Are Pricier Tickets Ahead? American, United, and Southwest Cut Flights

American Airlines expects $1 billion in extra fuel costs, which may lead to higher ticket prices as major airlines cut flights.
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Expensive fuel is already changing the plans of American, United, and Southwest, which are preparing to cut flights while trying to protect their profits.

  • For travelers, the combination of reduced capacity and still-strong demand could keep pressure on ticket prices over the next few months.

Why it matters: fewer flights may mean fewer schedules and available seats, especially on routes that become less profitable with the new costs.

American Faces $1 Billion Extra

American Airlines estimates that the recent fuel price increase will add approximately $1 billion to its costs during the fourth quarter, according to Reuters.

  • Its financial director, Devon May, explained that fuel is approximately $1 per gallon above what the company projected in July.

Each one-cent increase per gallon represents an additional $10 million in quarterly costs for American, according to the company’s figures.

The blow affects the entire industry: U.S. airlines spent $5.89 billion on fuel in July, 43% more than a year earlier, according to the Bureau of Transportation Statistics (BTS).

Additionally, they paid an average of $3.40 per gallon, compared to $2.34 in July 2025, a year-over-year increase of 45.4%.

American United and Southwest, airfare
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United and Southwest Start Adjusting Flights

United Airlines has already eliminated some scheduled flights for December because fuel made certain operations less profitable, Reuters reported.

The company may make new adjustments during the first quarter and continue modifying its capacity throughout 2027 if costs remain high.

Southwest also reacted: it reduced its planned capacity growth for 2026 by about half and is considering new cuts if pressure continues.

  • Airlines have two major tools in this scenario: reduce unprofitable flights or try to recover higher costs through higher fares.

What Can Happen to Airplane Ticket Prices?

For now, airlines claim that demand remains strong even after recent price increases, particularly at United and American.

This is important because reducing seats while travelers continue to buy can provide a greater margin to sustain high fares.

Prices are already under pressure: the airfare index increased 2.7% in August and 23.4% compared to the same month in 2025, according to the Bureau of Labor Statistics (BLS).

However, this increase cannot be attributed solely to fuel. Tickets also respond to factors such as demand, competition, season, route, and anticipation of purchase.

The scenario thus leaves a double risk for those planning to travel: finding more expensive tickets or having fewer flight and schedule alternatives if cuts continue.

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PHOTO: Shutterstock

How to Save on More Expensive Flights?

  • Compare dates and airports: small changes can reduce the price.
  • Activate fare alerts: they allow you to detect drops before buying.
  • Avoid waiting too long: fewer flights can quickly reduce available seats.
  • Check the final price: compare baggage, seat, and other charges.