United beats quarterly estimates but flags $6 billion fuel hit
United said fuel prices could add nearly $6 billion to 2026 costs, even as second-quarter revenue and adjusted profit topped analyst forecasts.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
United Airlines reported second-quarter results above Wall Street expectations on Wednesday, but the carrier warned that higher jet fuel prices are cutting into profit. The airline said fuel costs could add nearly $6 billion to its 2026 expenses compared with its assumptions at the start of the year.
United reported adjusted earnings of $1.99 per share for the quarter that ended June 30, according to the company. Analysts surveyed by LSEG had expected adjusted earnings of $1.88 per share.
The airline posted revenue of $17.67 billion, according to United. LSEG estimates had called for $17.61 billion.
United forecast adjusted earnings of $2.50 to $3.50 per share for the third quarter, below the $3.60 per share analysts expected, according to estimates compiled by LSEG. For the full year, United said it now expects adjusted earnings of $9 to $11 per share, placing the outlook at the upper end of the $7 to $11 range it issued in April.
The airline said fuel prices have been volatile enough that it updated its outlook using the latest available prices. United said fuel prices since the start of July have reduced its expected third-quarter adjusted earnings by $1.12 per share.
Jet fuel prices at major U.S. airports rose 34% in July through Tuesday, according to Argus data published by Airlines for America. CNBC reported that the increase came amid alternating escalation and de-escalation in the conflict between the U.S. and Iran.
United said its second-quarter fuel expense rose 84% from a year earlier to $2.3 billion. The company said its estimate for the nearly $6 billion full-year cost increase was based on Tuesday’s fuel prices.
The carrier said it expects to offset as much as 90% of the higher fuel cost in the third quarter and all of it in the fourth quarter. United also said in a filing that it could trim capacity plans further this year because of elevated fuel prices.
United said demand has held up even as fares rise. Delta Air Lines has also said it is pushing more of the fuel increase through to passengers, and the airlines said demand remains strong despite higher ticket prices.
United expanded flying 3.5% in the second quarter, according to the company. Revenue rose 16% from a year earlier to $17.67 billion, while total unit revenue increased 12.1%.
FactSet said that was United’s strongest unit revenue growth since early 2023. The airline said revenue improved across premium seats, corporate travel and basic economy fares, and that unit revenue rose on both domestic and international routes.
United reported net income of $805 million, or $2.46 per share, down more than 17% from a year earlier. Excluding one-time items, United said adjusted profit was $649 million, or $1.99 per share.
United executives are scheduled to discuss the results on an earnings call Thursday at 10:30 a.m. Eastern time.
This story draws on original reporting from CNBC.