United Airlines slashes its 2026 earnings guidance as it grapples with rising oil prices caused by the war in Iran.
The airline said it has already begun adjusting its schedule for 2026 to account for higher fuel prices, with an expected 5-point capacity reduction versus its original plan.
It also said it could earn between US$7 and $11 per share on an adjusted basis this year, down from the previous forecasts it released in January of between $12 and $14 per share.
Analysts polled by LSEG forecasted that United’s full-year earnings per share would be $9.58.
For the second quarter, United expects earnings per share of between $1 and $2. Analysts expected $2.08 for the quarter.
The airline estimated that fuel prices would average $4.30 a gallon in the second quarter.
United said it anticipates revenue will cover around 40% to 50% of the fuel increase in the second quarter, as much as 80% in the third quarter, and between 85% and 100% by the end of the year.
"Moments of uncertainty for the airline industry may also create opportunity for United," United CEO Scott Kirby said.
"We have demonstrated quarter after quarter that we are built to withstand disruptions, and this moment is no different.”
While United continued to share its guidance for the rest of the year, Alaska Airlines pulled its 2026 forecast amid the higher fuel prices.
Despite a tumultuous outlook for the rest of the year, revenue for the airline grew more than 20% to $14.61 billion and also beat expectations of $14.37 billion.
Net income also soared by 80% to $699 million or $2.14 per share. Adjusting for one-time items, United posted earnings per share of $1.19 per share, surpassing expectations of $1.07 per share.
Unit revenue rose in every segment, with U.S. domestic flights up 7.9% to $7.9 billion year-over-year.
United Airlines (NASDAQ: UAL) shares closed down 1.8% to $97.13, before lifting 0.8% in after-hours trade. Its market cap is $31.53 billion.
