United Airlines reported second-quarter results that exceeded Wall Street expectations, though the carrier faced significant headwinds from elevated fuel costs. The airline’s adjusted earnings per share came in ahead of analyst forecasts, driven by strong revenue growth and sustained passenger demand despite higher ticket prices.
However, fuel expenses remained a major concern for the carrier. United estimated that increased fuel costs could add approximately $6 billion to its full-year expenses compared with projections made at the start of 2026. Second-quarter fuel costs alone reached $2.3 billion, representing an 84% increase from the prior year. According to industry data, jet fuel prices at major U.S. airports climbed 34% in July through early in the month, driven by escalating tensions between the U.S. and Iran.
For the third quarter, United forecast adjusted earnings per share between $2.50 and $3.50, below analyst expectations of $3.60 per share. The airline updated its full-year guidance to adjusted earnings per share between $9 and $11, representing the higher end of its April forecast range. The company indicated it would offset up to 90% of elevated costs in the third quarter and all additional costs in the fourth quarter through various measures.
Revenue performance remained solid, with total revenue rising 16% from the year-earlier period to $17.67 billion, and unit revenue climbing 12.1%, the strongest growth rate since early 2023. The airline expanded flying capacity by 3.5% and saw improved revenue across premium, corporate, and basic economy segments, as well as both domestic and international routes. CEO Scott Kirby noted that demand remained strong despite rising fares, attributing price increases to multiple cost pressures including labor, maintenance, and airport fees beyond fuel alone.
Net income declined more than 17% to $805 million. Rival Delta Air Lines also reported passing higher fuel expenses through to customers amid the volatile fuel environment.
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