United Airlines is planning around elevated oil costs through 2027 as CEO Scott Kirby expects the airline industry to trim capacity. The airline reported third-quarter traffic up 0.7% despite a 62% increase in fuel expense; an Oct. 21 market roundup also tracked rising oil prices and a potential SpaceX-Tesla merger.

United said third-quarter traffic remained resilient as it tried to recover higher fuel costs through increased prices. The company averaged 538,000 daily customers during the quarter and recorded six of its 10 highest-volume travel days. United said higher prices, with traffic staying steady, allowed its overall revenue to surge. Premium revenue rose 17%, while basic-economy revenue increased 16%, United said.

United is pairing its pricing strategy with investments intended to gain market share, increase profitability and attract more customers. The airline is expanding Starlink wi-fi, larger seat screens, oversized bins and mobile-app improvements, while Kirby said industry capacity has increased. United recently launched a tracker that lets travelers check whether a flight has Starlink access.

Starlink is available on half of United’s flights. The airline plans to reach 61% of departures by the end of this year and aims to equip its entire fleet by the end of 2027. Kirby said the service was motivating some travelers to switch carriers: “Customers who are brand-loyal to other airlines and have flown them for years switch to a United flight solely because of Starlink.”

On an analyst call, Kirby said rising fuel costs remained a barrier to United’s goal of a double-digit pre-tax margin. He does not expect fuel costs to fall this year and said the airline’s strategy assumes elevated oil costs through 2027. “There have been an awful lot of airlines managing their business as if it weren’t for fuel,” Kirby said. “So, I think there are going to be supply changes.” He expects capacity to be cut later because some airlines built plans around the assumption that high oil costs would not last. Kirby also said, “Actually, being successful as an airline is really simple. One golden rule don’t fly places that lose money.”

Oil prices rose in early European trading as continued attacks on shipping in the Strait of Hormuz threatened flows, while U.S. industry data pointed to declining crude and product inventories. Brent crude rose 0.9% to $109.80 a barrel, while WTI futures gained 0.9% to $98.72.

Reports citing American Petroleum Institute data ahead of official EIA figures later Wednesday said U.S. crude stocks fell by 4.9 million barrels last week, with declines in gasoline and distillate inventories. MUFG analyst Soojin Kim said, “Oil markets have held onto their recent gains, shaking off headlines on the diplomatic stance between Iran and the U.S.”

Elon Musk said SpaceX and Tesla formed special board committees to discuss a potential merger. Musk said he serves on neither committee and that no deal is guaranteed. “But I do think there is a lot of merit in combining the companies,” he said. Any merger would be put to shareholders for a vote, according to Musk. Tesla shares rose 1.5% and SpaceX gained 5% in after-hours trading.

UBS analyst Cristian Nedelcu said Maersk shares looked expensive when considering potential midterm returns and free cash flow. He described container shipping as being in a sweet spot for the previous three years, with demand exceeding expectations and supply disruptions supporting ocean freight rates.

Maersk shares were up 60% year to date, and Nedelcu said the market was extrapolating the unusually supportive conditions into the future. As capacity grows and congestion eases, he said, shipping rates and industry cash generation could moderate, with downside risk to Asia-Europe demand.

UBS lowered its Maersk rating to sell from neutral but raised its price target to 19,680 Danish kroner from 17,800 kroner. Maersk shares fell 2% to 23,570 kroner.

HSBC analyst Parash Jain said Cathay Pacific Airways’ near-term earnings faced pressure from elevated fuel costs. He cited Korean Air Lines’ recent third-quarter results, in which a 67% increase in fuel expenses limited operating-profit growth, as a cautionary comparison for Cathay.

HSBC expects seasonal fourth-quarter demand to support cargo volumes and yields and partly cushion fuel costs. The bank cut its Cathay target price to HK$16 from HK$16.50 but maintained a buy rating. Cathay shares closed 1.1% lower at HK$13.20 on Tuesday.

DesRosiers Automotive Consultants data showed that new light-vehicle sales increased in each of Canada’s 10 provinces in September. Saskatchewan posted the largest year-over-year increase at 10.1%, followed by Prince Edward Island at 9.6%.

DesRosiers estimated that 168,000 new light vehicles were sold in Canada during September, up 3.4% from a year earlier. Year-to-date sales totaled 1.46 million units, 0.7% behind the same period last year. DesRosiers managing partner Andrew King said, “Regionally, the market continues to operate in a tight band with year-to-date performance of all provinces other than PEI in a narrow range from +2.1% to -2.5%.”

Daiwa analysts said global battery demand was likely to rise 16% in 2027 as manufacturers allocated more capacity to energy-storage systems. The analysts said China was leading in sodium-ion battery technology, which they described as “a lower-cost alternative to lithium-ion batteries,” and that China’s controls on energy-storage capacity could shift attention toward project pipelines and benefit leading domestic battery makers. Daiwa maintained a positive view on CATL, Eve and LGES because it expected energy-storage demand to drive growth.