March 20 (Reuters) - United Airlines CEO Scott Kirby said on Friday the airline will cancel about 5% of planned flights in the short term, as jet fuel prices surge due to the Middle East conflict.

"If prices stayed at this level, it would mean an extra $11 billion in annual expense just for jet fuel," Kirby said in a message to employees posted on the company's website, adding his plans assume oil goes to $175 per barrel and does not get back down to $100 per barrel until the end of 2027.

The airline's current plan is to restore the full schedule this fall, Kirby added.

The airline is cancelling about three percentage points of capacity in off-peak periods during the second and third quarters. It has also pulled services to Ben Gurion International Airport in Israel and the Dubai International Airport in UAE, affecting about 1 percentage point of capacity.

The airline will pull another percentage point of capacity to Chicago O'Hare International Airport following the Federal Aviation Administration's plans to cut flights this summer.