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United Airlines slashes 2026 profit outlook on fuel prices, but travelers keep booking despite higher fares
United expects fourth-quarter earnings far below Wall Street estimates as a fuel-price surge adds billions in airline costs.
- On Tuesday, United Airlines lowered its profit outlook, projecting fourth-quarter adjusted earnings between 50 cents and $1.50 per share, well below Wall Street's $1.76 estimate.
- Rising fuel costs are driving the forecast revision, with United expecting to pay $4.80 per gallon in the fourth quarter, up from $3.90 in the third quarter.
- Revenue for the quarter ended Sept 30 rose 17.4% to $17.88 billion, while net income reached $1.03 billion, an 8.5% increase from $949 million a year earlier.
- Despite strong travel demand and higher ticket prices, the carrier's full-year adjusted earnings are now projected to reach no more than $7.22 per share, down from the $9 to $11 range projected in July.
- Third-Quarter adjusted earnings of $2.54 per share narrowly missed analyst estimates, yet United continues to see strong booking momentum, suggesting demand resilience amid cost pressures.
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United Airlines forecasts fourth-quarter profit below estimates, citing costly fuel
By Rajesh Kumar Singh CHICAGO, Oct 20 (Reuters) - United Airlines on Tuesday forecast fourth-quarter profit well below Wall Street estimates, despite expectations for record revenue, as soaring fuel costs threatened to offset gains from strong travel ...
Coverage Details
Total News Sources11
Leaning Left1Leaning Right0Center8Last UpdatedBias Distribution89% Center
Bias Distribution
- 89% of the sources are Center
89% Center
11%
C 89%
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