United Airlines Cuts Profit Outlook Amid Surging Fuel Costs

United Airlines lowered its 2026 profit outlook and missed analyst earnings estimates after jet fuel expenses surged nearly 62% in the third quarter. The carrier reported a fuel bill of $4.84 billion between July and September, an increase of $1.8 billion over the previous year driven by price hikes rather than consumption. For the fourth quarter, the airline expects fuel prices to average $4.80 per gallon, leading to a projected adjusted earnings range of 50 cents to $1.50 per share, falling short of the $1.76 Wall Street estimate.

Despite these costs, the airline achieved record third-quarter operating revenue of $17.88 billion and a net income of $1.03 billion. Passenger demand remains strong, with counts increasing more than 2% year-over-year. CEO Scott Kirby stated the airline is recovering approximately 72% of increased oil costs through higher fares, with a goal of reaching 100%.

To maintain competitiveness and attract high-value passengers, the company is installing Starlink high-speed satellite Wi-Fi across its fleet and expanding its hub network, including a new 14-gate concourse at Washington Dulles airport. Financially, United expanded its revolving credit facility to $5 billion and plans to reduce gross debt to save $70 million in annual interest fees. The airline is also positioned to benefit from the recent U.S. regulator approval of the Boeing 737 Max 10, an aircraft that offers better economies of scale.