American, United and Southwest are all cutting ‘marginal routes’ as jet fuel prices spike

Bargain plane tickets are already pretty hard to get, and now, they’re only going to get more scarce as airlines scramble to deal with increased fuel costs nearing record highs. 

Executives at American Airlines, United Airlines and Southwest Airlines this week said they’re rethinking their least-profitable routes as jet fuel climbs to $4.71 per gallon, more than double the cost a year ago and near a 20-year high.Now, they’re considering cutting some low-performing routes in an effort to cut down on costs.

“You’re just going to want to pull a little capacity out when we see a rise in fuel like we’re seeing right now,” American Airlines CFO Devon May said at Morgan Stanley’s annual Laguna Conference on Sept. 16, adding the fuel spike has added $1 billion to the company’s projected fourth-quarter expenses, prompting it to cut some December flights and plan for less growth next year. 

May was far from the only airline executive to sound similar alarms at the conference. He was joined by Southwest CFO Tom Doxey,........

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