A United Airlines plane approaches the runway at Denver International Airport on March 23, 2026.
Al Drago | Getty Images
united airlines lowered its 2026 earnings outlook on Tuesday to deal with soaring jet fuel prices due to the Iran war.
United Airlines said it could earn between $7 and $11 a share on an adjusted basis this year, down from its previous forecast of $12 to $14 a share in January, more than a month before the U.S. and Israel attacked Iran.
The airline, like other airlines, is cutting back on some of its planned flights this year to cut costs. As a result, Wall Street was already adjusting its expectations for this year. Analysts surveyed by LSEG expected United Airlines to report full-year adjusted earnings of $9.58 per share.
For the second quarter, United expects adjusted earnings per share to be between $1 and $2. Analysts had expected earnings of $2.08 per share for the quarter. United Airlines expected fuel prices to average $4.30 per gallon in the second quarter.
The company said it expects revenue to cover 40% to 50% of fuel price increases in the second quarter, up to 80% in the third quarter and 85% to 100% by the end of the year.
United Airlines reiterated that it is adjusting its schedule to accommodate the fuel increase and expects capacity to be flat to about 2% more than a year ago in the second half of this year. It increased by 3.4% in the first quarter.
The following compares what United Airlines reported for the quarter ended March 31 with Wall Street expectations, based on estimates compiled by LSEG.
Earnings per share: $1.19 adjusted vs. $1.07 expected Sales: $14.61 billion vs. $14.37 billion expected
Increased sales and profits
Overall sales were $14.61 billion, an increase of more than 10% from $13.21 billion in the same period last year.
United’s net income for the first quarter increased 80% to $699 million, or 2.14 cents per share, compared with net income of $387 million, or 1.16 cents per share, in the same period last year. United Airlines’ earnings per share, adjusted for one-time items, were $1.19.
Unit revenue increased 7.9% year-over-year to $7.9 billion, with growth across all reported segments, including U.S. Domestic, demonstrating the strength of pricing power in the quarter.
“These are results that our employees can be proud of and demonstrate the resilience of our long-term strategy in the face of rising fuel costs,” CEO Scott Kirby said in the earnings call.
U.S. jet fuel prices were $3.51 a gallon on Monday, according to Platts Assessed Prices, down from a high of $4.78 on April 2 but well above $2.39 on Feb. 27, the day before the first attack on Iran.
Airline executives said demand remained strong despite raising fares and checked baggage fees to pass on higher fuel prices to customers. The airline industry is increasingly reliant on travelers who are willing to pay more for tickets and larger seats, making them less vulnerable to price hikes.
alaska airlines lowered its outlook for 2026 on Monday, citing soaring fuel prices. CEO Ben Minicucci told analysts on Tuesday that the airline had increased fares by about $25.
What are your ambitions for the merger?
United CEO Scott Kirby is likely to be asked about the airline’s ambitions to merge with another airline during an earnings call Wednesday at 10:30 a.m. ET.
Kirby has floated the possibility of a merger with american airlines Trump made the proposal to Trump administration officials earlier this year, but President Donald Trump has said he opposes the idea, according to people familiar with the matter.
“I don’t like mergers,” he told CNBC’s “Squawk Box” Tuesday morning. He said he would like someone to buy struggling discount airline Spirit, but suggested the federal government might be able to “help with that.”
American Airlines also rejected a proposed merger with United Airlines last week.
