Stephen Moore joins Stuart Varney to discuss the economic impact of rising crude oil prices, rising diesel costs, and President Donald Trump’s proposed dividend plan for American adults. Executives from American Airlines, United Airlines and Southwest Airlines said Wednesday that higher jet fuel prices are prompting airlines to adjust capacity and closely monitor flight schedules. The global average price of jet fuel rose 6.1% week over week to $181.46 per barrel last week, according to the International Air Transport Association (IATA). Speaking at Morgan Stanley’s 14th Annual Laguna Conference, American Airlines Chief Financial Officer Devon May said fourth-quarter jet fuel prices are about $1 per gallon higher than the airline projected in July, adding about $1 billion to its fuel bill. “Overall, for the third quarter, we feel very good,” May said. “What’s happened in the last four weeks, though, is that fuel went up probably $1 a gallon or something like that just during the fourth quarter.” AVELO CEO WARNS AIRFARE MAY RISE as fuel prices reach ‘uncomfortably high’ levels American Airlines CEO Robert Isom said the airline still expects third-quarter revenue to rise 16% to 19% from a year ago. (Alex Tai/SOPA Images/LightRocket via Getty Images)May said American will continue to adjust capacity later in the fourth quarter in response to higher fuel costs. American Airlines CEO Robert Isom said the airline still expects third-quarter revenue to increase 16% to 19% from a year ago, citing strength in domestic and international markets, as well as premium and economy cabins, according to Reuters. “If we look ahead to the fourth quarter, there will be some flights in December that we won’t fly that we thought we were going to do,” he said at the Morgan Stanley conference. “If fuel remains high, we will make some adjustments in the first quarter and beyond into 2027.” AIRLINE PASSENGERS TOKEN BY TURBULENCE DURING DESCENT: ‘WE’RE STARTING TO FALL INTO PLASTIC’ Leskinen also described United’s fourth-quarter bookings as “tremendously strong,” saying premium travel, corporate demand and economy class bookings have remained resilient. (Tayfun Coskun/Anadolu Agency via Getty Images) Leskinen also described United’s fourth-quarter bookings as “tremendously strong,” saying premium travel, corporate demand and economy class bookings have remained resilient. “Stockpiles have continued as we expected, so that part of the equation is resilient – very little evidence of demand destruction,” Leskinen said. At the conference, Southwest Airlines Chief Financial Officer Tom Doxey said the airline has already reduced about half of the modest year-over-year capacity growth it had planned in early 2026. “If fuel is higher for longer,” Doxey said, cutting capacity would be the “natural response.” However, an airline spokesperson told FOX Business that the schedule adjustments made so far have been minimal and that Doxey was making an “illustrative point” about the capacity cut and was “not alluding to an action we have taken.” GATE ACCESS FOR CERTAIN TRAVELERS WITHOUT TICKETS Southwest Airlines Chief Financial Officer Tom Doxey said the airline has already reduced about half of the modest year-over-year capacity growth it had planned in early 2026. (Scott Eisen/Bloomberg via Getty Images) Doxey added that stronger-than-expected fall bookings have helped offset higher fuel costs, allowing Southwest to maintain its third-quarter profit guidance, according to Reuters.GET FOX BUSINESS ON THE GO BY CLICKING HERE Spokespeople for American Airlines and United Airlines told FOX Business that the airlines had nothing further to add. Reuters contributed to this report.
