United Airlines has been slashing profit forecasts for the year as fuel costs continue to bite, but the operator said passengers kept bookings despite the jump in airfare.
United said Tuesday that it expects to earn between 50 cents and $1.50 per share on an adjusted basis in the fourth quarter, lower than the $1.76 per share expected by Wall Street analysts. At the high end of that range, it would result in United’s 2026 adjusted earnings of no more than $7.22 per share. In mid-July, United said it expected full-year earnings of $9 to $11 per share.
The carrier expects to pay an average of $4.80 per gallon for fuel in the fourth quarter, up from an average price of $3.90 per gallon in the third quarter.
United CEO Scott Kirby told CNBC’s Phil LeBeau on Wednesday that the carrier is passing on 72% of the fuel price increase to consumers, but he wants the number to be closer to 100%.
This year’s drop in fuel prices has added billions of dollars to airline costs, dented profits, despite strong demand, and increased airfares.
Here is United Airlines’ report for the quarter ended September 30 compared to what Wall Street expected, based on estimates compiled by LSEG:
- Earnings per share: $2.54 adjusted vs $2.57 expected
- result: $17.88 billion vs $17.9 billion expected
United’s third-quarter net income rose 8.5% from a year earlier to $1.03 billion, or $3.14 per share. During the same period last year, total net income was $949 million, or $2.90 per share.
“Our employees face the challenges of an ever-changing environment and our results prove the resilience of our focus on building a brand-loyal airline for our customers,” Kirby said in an earnings release.
United’s fuel bill rose nearly 62% in the quarter from a year earlier to $4.84 billion.
Revenue for the three months ended September 30 rose 17.4% from a year earlier to $17.88 billion, compared with $15.23 billion a year earlier.
Domestic passenger unit revenue rose 14.5% from the previous year, while international unit revenue rose 17.4%, a sign of higher fares. Passengers continue to book, United said, with passenger numbers up more than 2% from last year.
Adjusting for one-time items, United reported net income of $833 million or $2.54 per share.