United Airlines cuts profit forecast due to higher fuel costs — CNBC

United Airlines has lowered its adjusted profit forecast for 2026 due to rising fuel prices. In the fourth quarter, the carrier expects adjusted earnings of between 50 cents and $1.50 per share, while Wall Street analysts had forecast $1.76 per share, CNBC reports.

New forecast

Even at the upper end of its quarterly forecast, United Airlines' adjusted profit for all of 2026 will not exceed $7.22 per share. In mid-July, the company expected annual earnings in the range of $9 to $11 per share.

The carrier expects to pay an average of $4.80 per gallon for fuel in the fourth quarter. In the third quarter, the average price was $3.90 per gallon. Rising fuel costs this year have added billions of dollars to airlines' expenses despite strong demand for flights and higher fares.

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Third-quarter results

For the three months ended September 30, United Airlines' net profit rose 8.5% year-on-year to $1.03 billion, or $3.14 per share. A year earlier, the company reported net profit of $949 million, or $2.90 per share.

Third-quarter revenue increased 17.4% to $17.88 billion, compared with $15.23 billion a year earlier. Adjusted earnings per share were $2.54, versus analysts' forecast of $2.57, while revenue nearly matched the market expectation of $17.9 billion.

Demand for air travel

Passenger revenue per unit of transportation on domestic routes rose 14.5% year-on-year, while international routes saw an increase of 17.4%. CNBC described this as a sign of higher fares. United Airlines also reported that passenger numbers increased by more than 2% compared with last year.