American Airlines may trim capacity if jet fuel stays high, CEO says

American Airlines could reduce flying if jet fuel prices hold at present levels, the carrier's chief executive said at an investor conference in California this week.

Robert Isom said the airline has been recovering much of the added cost tied to fuel, but told attendees at the Morgan Stanley Laguna Conference that continued high prices would likely force the company to revisit how much capacity it plans for the months ahead. He did not specify which routes or how much flying might be affected.

Isom also said demand remains strong, unit revenue has risen, and premium travel is still performing well, which he said leaves the airline in a sound financial position.

Jet fuel prices doubled earlier this year, according to the account, during the war in Iran and the closure of the Strait of Hormuz. Crude oil, the feedstock for jet fuel, has risen further in recent weeks as Iran restricts traffic through the strait and fighting escalates in Yemen. Militants in Iraq bombed the East-West Crude Oil Pipeline in Saudi Arabia, a key bypass around the strait, prompting Saudi Aramco to shut it temporarily.

On the customer side, Isom pointed to spending on Flagship suites, the rollout of Starlink internet, the return of seatback entertainment screens and new airport lounges as part of the carrier's improvement efforts.