“Higher jet-fuel prices lead to higher ticket prices,” Kirby informed CNBC’s “Squawk on the Street.” “Ultimately, we’ll pass that through.”
United forecast common fuel prices of $2.39 a gallon within the fourth quarter, when it expects a surge in bookings from the end-of-year holidays and lately loosened worldwide journey restrictions. That’s up from $2.14 a gallon within the third quarter and the $2.02 on common it paid within the fourth quarter of 2019.
Kirby mentioned higher demand normally drives fuel prices up. The improve in demand is a welcome development for an trade that continues to wrestle to return to profitability.
United posted a $473 million profit for the third quarter, thanks to $1.1 billion in federal support, although a surge in delta-variant circumstances of Covid-19 weighed on its backside line. The Chicago-based airline reiterated that it expects its 2022 prices, excluding fuel to be decrease than 2019.
The firm’s shares had been up greater than 1% in morning buying and selling Wednesday.