United Airlines recorded its highest ever first‑quarter revenue, $14.6bn, up 10.6% year‑over‑year and driven by a 14% surge in premium and business travel. Despite the sales boost, chief executive Scott Kirby trimmed the 2026 earnings‑per‑share outlook to $7‑$11 from $12‑$14, citing billions in extra fuel costs after the Iran conflict. The carrier also plans a 5% capacity reduction for 2026.

Jet fuel prices exploded after the United States and Israel struck Iran, leaving the Strait of Hormuz—through which roughly one‑fifth of global oil flows—largely shut. Carriers responded by raising fares and adding fees, while United and Delta rely on strong premium clientele and modest leverage to absorb the shock. Delta has announced schedule cuts aimed at recouping 40‑50% of its higher fuel bill.

The profit downgrade coincides with United’s overture to American Airlines, a proposal analysts estimate could yield almost $8bn in synergies but would give the combined firm dominance in hubs such as Chicago and Washington. American rejected the idea, warning of antitrust risks, and President Trump publicly opposed any merger, adding political resistance to an already delicate consolidation debate.