United Airlines falls on plan to cut more flights, eyes oil above $100 through 2027

Shares of United Airlines UAL.O down 2.1% to $88.03 premarket

Co to cut more unprofitable flights over the next two quarters as it prepares for a prolonged period of high jet fuel prices due to the Iran war

Chief Executive Scott Kirby said in a staff memo on Friday the airline is preparing for oil to rise as high as $175 a barrel and remain above $100 until the end of 2027

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 ever," Kirby said

The airline would cancel about three percentage points of off-peak flying in the second and third quarters, targeting routes and periods with weaker demand
United had already begun trimming less profitable flights, including some midweek, Saturday and overnight services

Average rating of 26 analysts is "buy"; their median PT is $135 - LSEG-compiled data

Stock is down 19.5% YTD