United Airlines Holdings Inc. and American Airlines Group Inc. signaled potential capacity reductions in the fourth quarter and beyond as fuel costs surge. At a Morgan Stanley conference in California, American CEO Robert Isom said high fuel prices may require adjustments to capacity planning. United CFO Mike Leskinen added the carrier will make adjustments into Q1 and 2027, emphasizing profitability over market share.

American estimates $1 billion in extra fuel costs for Q4, while United sees $6 billion in added fuel costs for 2026. Both carriers have already cut flights: United reduced scheduled flights by 5% in Q2 and Q3, targeting off-peak routes and trimming operations at Chicago O'Hare. American has cut guidance twice this year, now forecasting a full-year range of a $0.65 loss to $0.65 profit.

CFO Devon May noted one penny of fuel cost equals $10 million, but highlighted a stronger balance sheet and ample liquidity. Brent crude is up nearly 70% this year amid the US-Iran war and Ukraine conflict. JetBlue Airways Corp. also lowered its capacity outlook.

Shares reacted mixed, with American up 0.3% and United down 0.9% at midday in New York.