United Airlines CEO Scott Kirby warned that high fuel prices may force the carrier to raise airfares. Geopolitical tensions in the Middle East drive these costs.
Rising crude oil prices directly impact jet fuel expenses. United and other U.S. carriers recently canceled multiple flights to the Middle East.
These disruptions cause substantial revenue losses. United’s unhedged fuel strategy exposes the company to price volatility. This exposure contributed to recent declines in the company's stock price.