The airline industry is facing growing financial pressure as soaring fuel prices erode profits despite strong passenger demand and higher ticket fares, prompting major U.S. carriers to consider limiting flight growth in 2027.
Delta Air Lines and United Airlines have both warned that rising operating expenses, driven largely by the war involving Iran and disruptions to global energy markets, could force airlines to increase fares further while reducing planned capacity expansion.
The developments could have implications for transatlantic travel, including flights between the United States and Greece, where both airlines operate multiple nonstop services during the peak summer season.
According to Reuters, U.S. airlines spent $42.9 billion on fuel during the first eight months of 2026, an increase of $13.2 billion compared with the same period last year, despite slightly lower consumption.
United and Delta Face Mounting Financial Pressure
United Airlines on October 20 projected fourth-quarter adjusted earnings of 50 cents to $1.50 per share, substantially below Wall Street’s average estimate of $1.76, even as the airline anticipates record revenue.
The Chicago-based carrier expects jet fuel to cost $4.80 per gallon during the final quarter, approximately 45 cents above analysts’ previous assumptions. Higher fuel expenses absorbed nearly 70% of United’s third-quarter revenue gains, while its adjusted pretax profit margin narrowed to 6.2% from 8% a year earlier.
Delta issued a similar warning earlier this month, reducing its annual earnings forecast by nearly a quarter as its projected fuel bill climbed to approximately $6 billion above last year’s level.
The Atlanta-based airline now expects adjusted annual earnings of $5.10 to $5.60 per share, compared with its earlier projection of $6.50 to $7.50.
Delta Chief Executive Ed Bastian said ticket prices have already increased by roughly 20% this year, with relatively limited resistance from passengers.
“In a high-cost environment you cannot grow your way out of it,” Bastian said, suggesting additional restrictions on flight capacity may be necessary next year.
Alaska Air Group has also warned of substantial losses, forecasting a fourth-quarter adjusted loss of $2 to $2.50 per share, considerably worse than analysts had expected.
Higher Fares and Fewer Flights Could Affect Travel to Greece
The financial squeeze comes as U.S. airfares have risen nearly 23% year-on-year in the seven months through September, according to Labor Department figures. Analysts warn that further increases could weaken demand, forcing airlines to reconsider planned expansion.
The implications are particularly relevant for Greece, a major summer destination for American travelers and the Greek-American community.
During the 2026 peak season, Delta operated nonstop flights to Athens from New York’s JFK Airport, Atlanta and Boston, while United connected the Greek capital with Newark, Washington Dulles and Chicago O’Hare.
Delta has also announced a new Detroit-Athens route for summer 2027, although recent scheduling changes indicate that the airline has scaled back a previously planned frequency increase on its Atlanta-Athens service.
Neither airline has announced broad reductions to its Greece network because of the fuel-price crisis. However, higher operating costs and tighter capacity could affect ticket prices and the availability of seats during the busiest travel months.
The pressure extends to Europe, where Ryanair Chief Executive Michael O’Leary has warned that airfares could increase by as much as 20% in 2027 as airlines contend with elevated fuel prices and reduced capacity.
Analysts expect the industry’s financial outlook to remain closely tied to developments in the Middle East and global energy markets, with airlines facing difficult decisions over fares, flight schedules and profitability in the coming year.
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