United Airlines says fares may need to rise up to 20% to offset fuel surge
CHICAGO, April 22 (Reuters) - United Airlines UAL.O CEO Scott Kirby said on Wednesday ticket prices may need to rise by as much as 15% to 20% to offset a surge in jet fuel costs, signaling a significant test of consumers' willingness to absorb higher fares as the industry grapples with volatile oil prices.
On the company's earnings call, Kirby said that United is aiming to recover the full increase in fuel costs "as quickly as possible" and expects to move toward a 100% pass-through, as it targets double-digit pre-tax margins next year.
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