United expects gradual fare hikes in 2027

United Airlines CEO Scott Kirby says airfares are expected to rise gradually in the first half of 2027, but by less than the increases seen this year, as travel demand remains strong. He emphasizes there has been no meaningful slowdown in demand and that the sustained strength should help United offset higher fuel costs, with a potential 100% recovery in the fourth quarter of 2026. Data cited show year-over-year fare increases around 25% in mid-2026, while inflation-adjusted fares sit about 13% below pre-pandemic levels, signaling a move toward more normal, profitable pricing. Kirby also notes that aircraft deliveries have largely resumed on pace after earlier supply-chain troubles, improving the carrier’s capacity planning. He contends fuel costs will be managed alongside robust demand, with oil prices expected to gradually decline into 2027 while fares remain elevated. Taken together, United’s outlook highlights resilient travel demand despite geopolitical and economic uncertainty and suggests a pathway to profitability and reinvestment.