United Airlines reported second-quarter results that exceeded Wall Street projections, though the carrier continues to contend with substantial increases in fuel expenses. The airline projected third-quarter adjusted earnings per share between $2.50 and $3.50, falling short of analyst expectations of $3.60 per share. For the full year, United raised its adjusted earnings per share guidance to a range of $9 to $11, representing an upward revision from the $7 to $11 range it provided in April.
Fuel costs remain the primary challenge facing the carrier. Jet fuel prices at major U.S. airports have surged 34% in July alone, driven by escalating tensions between the U.S. and Iran. United disclosed that elevated fuel prices could add nearly $6 billion to its annual expenses compared with initial 2026 projections. Second-quarter fuel costs climbed 84% year-over-year to $2.3 billion. The airline indicated it would offset up to 90% of third-quarter fuel cost increases and all fourth-quarter increases through other measures.
Despite rising expenses, United demonstrated strong operational performance. The carrier expanded flying capacity by 3.5% in the second quarter, with revenue climbing 16% to $17.67 billion compared with the prior year. Total unit revenue increased 12.1%, representing the strongest growth rate since early 2023. Premium, corporate, and basic economy ticket revenue all showed increases, with both domestic and international trips generating higher unit revenues.
CEO Scott Kirby indicated that the underlying economy remains robust, noting that fare increases reflect not only fuel price volatility but also rising maintenance, labor, and airport fees. Rival Delta Air Lines similarly reported passing increased costs to passengers while maintaining strong demand. United reported net income of $805 million, or $2.46 per share, with adjusted net income of $649 million, or $1.99 per share. The carrier may further reduce capacity plans if fuel costs remain elevated.
Originally reported by CNBC. Read the full story →