United Airlines CEO expects that war will cause a sharp but temporary rise in ticket prices.

United Airlines CEO Scott Kirby said that the rise in oil prices triggered by the military strikes in Iran will temporarily push up ticket prices, but as the conflict subsides, prices should return to normal. Kirby said in an interview on Tuesday that fuel accounts for a large portion of United's costs, so when fuel prices rise, ticket prices also go up. "However, when fuel prices fall, ticket prices will also decrease," he said. "This cycle will continue." Benchmark U.S. crude oil futures briefly rose to nearly $120 per barrel on Sunday night, reaching the highest level since 2022. On Tuesday, oil futures closed at $83.45 per barrel, marking the largest single-day drop in four years. Kirby said that this volatility indicates that the market believes the conflict could be resolved in the short term, leading to a drop in oil prices. "My personal assessment is that this conflict will continue for a few more weeks, and then the Strait of Hormuz will reopen," he said. "Oil prices will begin to return to normal, and we will enter a situation of oversupply."