Benchmark crude prices have surged to around $100 a barrel in the past three weeks, and United chief Scott Kirby said "our plans assume oil goes to $175 a barrel and doesn't get back down to $100 a barrel until the end of 2027."

If prices stay at current levels, United's fuel bill would balloon by an extra $11 billion this year, Kirby said in a statement to employees.

In response, the airline will cut flights on routes that are no longer profitable at current fuel prices, representing "about five points of this year's planned capacity in the short term," Kirby said.

But for now passenger demand remains strong, Kirby said, and United will not cut jobs or costs, or delay investments, and it still plans to take delivery of around 120 new planes this year.

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United Airlines Holdings