financetom
Business
financetom
/
Business
/
United Airlines bets bigger on premium travel as Iran war drives up fuel costs
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
United Airlines bets bigger on premium travel as Iran war drives up fuel costs
Mar 24, 2026 5:22 AM

* United plans to receive over 250 aircraft by April 2028

* United focuses on premium seating with new Airbus

models

* Premium travelers seen as resilient to fare increases

By Rajesh Kumar Singh

CHICAGO, March 24 (Reuters) - United Airlines on

Tuesday unveiled a broad aircraft and cabin overhaul centered on

higher-end seating, pressing ahead with its long-term growth

plan days after warning that oil could stay above $100 a barrel

through 2027 and outlining plans to trim some flights in

response.

The Chicago-based carrier said it expects to receive more

than 250 aircraft by April 2028, including 68 Airbus

A321neo Coastliner and A321XLR jets with lie-flat Polaris

business-class seats and larger premium cabins.

The move comes after Chief Executive Scott Kirby said last week

that United would trim about five percentage points of planned

capacity this year as it prepares for oil to remain above $100 a

barrel through 2027 and rise as high as $175.

At those levels, United's annual fuel bill would rise by

about $11 billion, more than twice the profit it earned in its

best year, he said.

Still, Kirby said United was better positioned than in past

cycles to absorb shocks, protect margins by cutting less

profitable flying and keep investing for the long term.

"We've positioned ourselves to get through these storms that

are inevitable, stay focused on the long term and keep investing

for the long term," he said on a media call.

PREMIUM PUSH

At the center of the announcement are two new Airbus models

that will feature lie-flat Polaris seats and Premium Plus

cabins.

One, called the Coastliner, will fly exclusively between Los

Angeles and San Francisco and Newark/New York. The other, the

A321XLR, will replace Boeing 757s on some existing

international routes starting this summer and later open new

destinations in Europe and South America.

United said the 757s now flying many of those routes

typically have about 16 business-class seats. The A321XLR will

have 32 premium seats. The Coastliner will have 20 Polaris seats

and 12 Premium Plus seats.

INDUSTRY BET

Big U.S. carriers have increasingly built their business around

premium travelers, corporate accounts and loyalty-program

members since the pandemic, betting those customers are slower

to pull back when fares rise.

Andrew Nocella, United's chief commercial officer, said the

U.S. economy and air travel demand remained strong, allowing

United to raise fares without materially hurting bookings.

"I can tell you that the environment is strong," Nocella

said. "We've been able to pass through many of the price

increases necessary to cover what is a significantly quick and

rapid increase in the price of oil and jet fuel."

(Reporting by Rajesh Kumar Singh; Editing by Lincoln Feast.)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Canter Resources Buys Historical Third-Party Data, Completes Data Integration at Columbus Lithium-Boron Project
Canter Resources Buys Historical Third-Party Data, Completes Data Integration at Columbus Lithium-Boron Project
Mar 18, 2024
12:05 PM EDT, 03/18/2024 (MT Newswires) -- Canter Resources Corp. ( CNRCF ) said Monday that it has bought additional third-party data including historical soil sampling results and geophysical survey data that highlights significant lithium in soils along the eastern edge of the 5 by 2.5 kilometers priority target area at the Columbus Lithium-Boron Project. The substantial third-party historical geochemical...
Nextracker Names Charles Boynton as CFO
Nextracker Names Charles Boynton as CFO
Mar 18, 2024
12:13 PM EDT, 03/18/2024 (MT Newswires) -- Nextracker ( NXT ) said Monday it has appointed Charles Boynton as chief financial officer, starting in May, succeeding David Bennett, who will transition to chief accounting officer. Boynton will join the company from Logitech International (LOGI), where he served as CFO. Nextracker ( NXT ) said Boynton will step down from the...
Musk defends his ketamine use as beneficial for investors in new video
Musk defends his ketamine use as beneficial for investors in new video
Mar 18, 2024
March 18 (Reuters) - CEO Elon Musk said his ketamine prescription was beneficial for Tesla's investors in a video interview with former CNN anchor Don Lemon posted online on Monday. Musk said the drug helps him manage a negative chemical state similar to depression in the interview conducted this month that also touched on politics, content moderation on X and...
Landstar System Makes Executive Promotions
Landstar System Makes Executive Promotions
Mar 18, 2024
12:13 PM EDT, 03/18/2024 (MT Newswires) -- Landstar System ( LSTR ) promoted Matt Dannegger to chief field sales officer and Jim Applegate to chief corporate sales, strategy and specialized freight officer. Most recently, Dannegger served as senior executive vice president responsible for all agent field sales, while Applegate was executive vice president of business intelligence and strategy, the company...
Copyright 2023-2026 - www.financetom.com All Rights Reserved