united airlinesSecond-quarter results beat Wall Street expectations, but billions of dollars in additional fuel costs continue to weigh on profits, the airline said Wednesday.
United Airlines’ third-quarter adjusted earnings per share are expected to be between $2.50 and $3.50, compared with analysts’ expectations of $3.60 per share. The company expects full-year adjusted earnings of $9 to $11 per share, at the high end of the range of $7 to $11 per share adjusted in April, when it lowered its January forecast following the U.S. and Israeli attack on Iran in late February.
Jet fuel prices at major U.S. airports rose 34% through Tuesday in July alone, amid a roller coaster of escalation and escalation in the conflict between the U.S. and Iran, according to Argus data released by industry group Airlines for America. Jet fuel is the second largest cost for airlines after labor costs.
United Airlines said higher fuel prices could increase its spending by nearly $6 billion this year compared to its expectations in early 2026, with fuel costs in the second quarter rising 84% from a year earlier to $2.3 billion. These estimates were made based on Tuesday’s fuel prices. The company said it will cover up to 90% of the higher costs this fiscal year and expect to cover the full amount in the fourth quarter.
rival delta airlines He also said much of that high cost is being passed on to flyers. The airline said demand remained strong despite the fare increases.
The following compares what United Airlines reported for the quarter ended June 30 with Wall Street expectations, based on estimates compiled by LSEG.
Earnings per share: $1.99 adjusted vs. $1.88 expected Revenue: $17.67 billion vs. $17.61 billion expected
United Airlines said it would update its forecast to include the latest fuel prices because costs are so volatile. Since the beginning of July, fuel prices have impacted third-quarter adjusted earnings by $1.12 per share, the company said.
“Our economy is doing well, probably better than people give it credit for, because we’re very good real-time indicators,” CEO Scott Kirby said Thursday on CNBC’s “Squawk Box.” He said fares are rising not only because of fuel prices, but also because of other costs such as maintenance, labor costs and airport fees.
The company said in a filing that it may make further cuts to its capacity plans this year due to rising fuel costs.
United Airlines grew its flights by 3.5% in the second quarter. Revenue increased 16% year-over-year to $17.67 billion, and total unit revenue increased 12.1% year-over-year in the second quarter. That was the highest unit revenue growth since early 2023, according to FactSet.
The company reported increased revenue for premium, corporate and no-frills basic economy tickets, with unit prices rising for both domestic and international travel.
Net income fell more than 17% to $805 million, or $2.46 per share. Adjusted for one-time items, United reported $649 million, or $1.99 per share on an adjusted basis.
United executives will hold an earnings conference Thursday at 10:30 a.m. ET.
