United Airlines’ Fuel Costs Decrease in 2023

United Airlines announced on Tuesday that its fuel costs for 2023 have fallen by 3.5% compared to the previous year, despite a significant increase in fuel demand of over 16%.

Fourth Quarter Expenses

In the fourth quarter, United spent $3.315 billion on fuel and related costs, which is almost the same amount as the $3.317 billion spent in the same period of 2022. However, when comparing the full year, there is a notable decrease in fuel expenses. United’s total fuel costs for 2023 were $12.651 billion, representing a 3.5% decrease from the $13.113 billion spent in 2022.

Increased Fuel Consumption

During the fourth quarter, United burned 1.059 billion gallons of fuel, showing a 13% increase from the previous year. Throughout all of 2023, the company consumed 4.205 billion gallons of jet fuel, marking a significant rise of 16.5% compared to the 3.608 billion gallons consumed in 2022.

Lower Fuel Prices

United reported a decline in fuel prices as well. In the fourth quarter, the average fuel price was $3.13 per gallon, down nearly 12% from Q4 2022’s average of $3.54 per gallon. For the entire year, the average price paid by United was $3.01 per gallon, reflecting a notable 17% decrease from 2022’s average price of $3.63 per gallon.

Decrease in Cost Efficiency

Furthermore, United also saw a significant decline in its cost to fly one seat one mile, known as fuel cost per available seat mile (CASM). In the fourth quarter, United’s CASM was reported at 4.49 cents per available seat mile, which is 13% lower than the 5.16 cents per ASM recorded in the same period of 2022. The yearly fuel CASM exhibited an even larger decrease, with United reporting a CASM of 4.34 cents per ASM for 2023, down 18% from the previous year’s 5.29 cents per ASM.