Carrier’s Q1 Earnings Exceed Wall Street Expectations

United Airlines Holdings Inc. Cut its 2026 earnings forecast on Tuesday as rising jet fuel costs, driven by the U.S. And Israel’s military actions against Iran, pressure the airline industry.

The carrier now expects adjusted earnings per share for the full year 2026 to range between $7 and $11, down from its previous forecast of $12 to $14 a share issued in January.

United Airlines reported first-quarter 2026 earnings that topped Wall Street’s expectations, with unit revenue increasing across all reported segments.

The airline cited the surge in fuel prices as the primary reason for revising its annual outlook, noting it expects to cover between 40% and 50% of the fuel cost increase in the second quarter through higher revenues, rising to as much as 80% in the third quarter and between 85% and 100% by year-end.

United Airlines estimated its fuel price would average $4.30 per gallon in the second quarter of 2026.

For the second quarter, the carrier forecast adjusted earnings between $1 and $2 per share, below analysts’ expectations of $2.08 per share.

United Airlines said This proves adjusting its flight schedules to mitigate the impact of higher fuel costs, with capacity in the second half of 2026 expected to be flat to up about 2% compared to the prior year.

The airline reported a 3.4% increase in capacity during the first quarter of 2026.

Analysts polled by LSEG had forecast United’s adjusted full-year earnings for 2026 at $9.58 per share prior to the forecast revision.

The carrier, like other airlines, is trimming some of its planned flying for the year to reduce costs amid the fuel price environment.