American, United Weigh Capacity Cuts as Fuel Prices Stay Elevated

American Airlines may reduce flying later this year and slow capacity growth in 2027 if fuel prices remain elevated, CEO Robert Isom said at a Morgan Stanley conference. Chief Financial Officer Devon May said the airline is still growing capacity overall in the fourth quarter but is pulling back some December flights, while higher fuel prices are expected to add about $1 billion to fourth-quarter costs. Despite the pressure, strong demand and higher fares have helped American recapture much of the added expense, with the carrier forecasting third-quarter revenue growth of 16% to 19% year over year. United Airlines is also removing some December flights and considering further reductions into 2027 as both carriers prioritize more profitable routes and protect margins.