United Airlines (UAL.O), opens new tab CEO Scott Kirby said on Wednesday ticket prices may need ​to rise by as much as 15% to 20% to offset a surge ‌in jet fuel costs, signaling a significant test of consumers' willingness to absorb higher fares as the industry grapples with volatile oil prices.

Reuters – On the company's earnings call, Kirby said that United is aiming ​to recover the full increase in fuel costs "as quickly as possible" and expects ​to move toward a 100% pass-through, as it targets double-digit pre-tax margins ⁠next year.

United said it has already begun raising prices, implementing five fare increases late in the first quarter along with higher baggage fees, ​which have started to ​offset rising fuel costs.

It ⁠expects to recover only 40% to 50% of the increase in fuel prices through fares and other revenue measures in the second ​quarter, improving to 70% to 80% in the third quarter and ​as much ⁠as 85% to 100% by the fourth quarter.

Company executives said ticket yields rose about 12% in early March and climbed further to around 18% in the second half of the month.

Kirby ⁠said ​the airline has not yet seen a drop in ​demand, even as prices rise, but acknowledged that higher fares would eventually test consumers.