United Airlines announced a significant reduction in its profit expectations for the year as fuel expenses intensified. The airline stated Tuesday that fourth-quarter adjusted earnings would reach between 50 cents and $1.50 per share, substantially below Wall Street’s anticipated $1.76 per share. Should United achieve the upper end of that projection, full-year adjusted earnings would reach no more than $7.22 per share, a sharp decline from the $9 to $11 per share guidance the carrier had provided in mid-July.
Fuel price escalation remained the primary driver of reduced profitability. United projected average fuel costs of $4.80 per gallon for the fourth quarter, a marked increase from the $3.90 per gallon average in the third quarter. The airline’s fuel expenses for the three-month period ending September 30 climbed approximately 62% year-over-year to $4.84 billion.
Despite the headwinds from elevated fuel costs, United demonstrated operational resilience and passenger demand remained robust. Third-quarter net income increased 8.5% to $1.03 billion, or $3.14 per share, compared with $949 million or $2.90 per share during the same period the previous year. Adjusted net income for the quarter totaled $833 million or $2.54 per share. Revenue for the quarter rose 17.4% year-over-year to $17.88 billion.
The airline successfully offset some margin pressure through higher fares, as passengers continued booking despite increased ticket prices. Passenger counts increased more than 2% from the prior year. Domestic passenger unit revenue climbed 14.5% while international unit revenue advanced 17.4%, reflecting the higher pricing environment. United CEO Scott Kirby credited employee performance and the carrier’s focus on building brand loyalty as factors demonstrating resilience amid challenging market conditions.
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