United Airlines cuts 2026 profit outlook amid rising fuel costs

By Mucahithan Avcioglu

ISTANBUL (AA) - United Airlines lowered its 2026 profit outlook Tuesday as higher fuel costs squeezed earnings, even as passengers continued booking flights despite rising fares.

The US carrier forecast adjusted earnings of between 50 cents and $1.50 per share for the fourth quarter, below expectations.

The guidance implies full-year adjusted earnings of no more than $7.22 per share, compared with the company's July forecast of $9 to $11.

United expects its average fuel price to reach $4.80 per gallon in the fourth quarter, up from $3.90 in the third quarter, an increase of about 23%.

Rising fuel prices have added billions of dollars to airlines' costs this year, weighing on profitability and pushing fares higher despite resilient travel demand.

For the third quarter, United reported adjusted earnings of $2.54 per share, slightly below expectations.

Revenue increased 17.4% from a year earlier to $17.88 billion in the three months ending Sept. 30, narrowly missing expectations of $17.9 billion.

Net income rose 8.5% to $1.03 billion, or $3.14 per share, from $949 million, or $2.90 per share, a year earlier.

Passenger demand continued to grow, with travelers up more than 2% from a year earlier, according to the airline.

Domestic passenger unit revenue rose 14.5%, while international unit revenue climbed 17.4%, suggesting higher fares helped drive revenue growth.

The results highlighted the pressure airlines face as strong bookings and higher ticket prices failed to fully offset rising fuel costs and their effect on earnings outlook.

Mücahithan Avcıoğlu