United Airlines Holdings Inc. has forecast weaker-than-expected earnings for the final quarter of the year, citing soaring jet fuel prices that continue to pressure airline profits despite strong travel demand. The Chicago-based carrier expects adjusted fourth-quarter earnings of 50 cents to $1.50 a share, well below the $1.88 analysts had anticipated. Fuel expenses surged 61.6% to $4.84 billion in the previous quarter, and the outlook assumes fuel prices will climb to $4.80 a gallon, up from an average of $3.90 in the third quarter.
This trend mirrors warnings from rival Delta Air Lines Inc., which recently slashed its full-year profit forecast. United reported adjusted third-quarter earnings of $2.54 a share, missing estimates, while revenue rose 17.4% to $17.88 billion. The airline is adjusting capacity and focusing on profitability rather than market share, with CFO Mike Leskinen stating further adjustments may come in 2027 if fuel remains high.
Despite the challenges, United continues to benefit from strong spending by affluent and corporate travelers, with premium revenue up 17% and contracted business travel revenue jumping 26%. The carrier is also investing in premium offerings and onboard amenities, including the rollout of SpaceX’s Starlink in-flight Wi-Fi, with 640 aircraft equipped and plans to outfit 87% of its fleet by June 2027.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing