United CEO Warns of More Fare Spikes, Talks Up Possible Deals

United Airlines CEO Scott Kirby warned that fares would have to increase 20% to offset surging fuel costs, but said United is in a stronger position than rivals and stands ready to scoop up assets from distressed competitors if the crisis deepens.

“If oil prices stay where they are today, that’s $11 billion of expense for us, and that would require prices to be up 20% to break even — to cover that cost,” Kirby told Bloomberg on Tuesday, before the recent decline in prices. 

He said in an interview with reporters in Los Angeles that such an increase would likely hit demand, though not necessarily at the high-end. 

He said that he thinks it’s “really unlikely” that premium demand will dampen, even if the economy weakens. Earlier this week, United unveiled a major aircraft order, which will include more business class seats across its narrowbodies and regional jets. The carrier is also adding a “Relax Row” to its Boeing 787-9s