United Airlines Cuts 2026 Profit Outlook Amid Rising Fuel Costs

United Airlines Holdings Inc. has revised its 2026 full-year adjusted earnings per share forecast downward to $7 to $11, down from the previous range of $12 to $14. The carrier attributes the cut primarily to escalating fuel costs driven by the ongoing war in the Middle East, according to the airline's first-quarter 2026 earnings report released this week.

For the second quarter, United projects earnings of $1 to $2 per share, assuming an all-in fuel price of approximately $4.30 per gallon. Management anticipates recapturing 40% to 50% of higher fuel costs through pricing in the initial months, increasing to between 85% and 100% by the fourth quarter. This strategy aims to mitigate financial strain amid volatile energy markets affecting the broader industry.

Despite the revision, the airline notes that strong underlying travel demand persists throughout its network. Global carriers continue to face pressure from conflict-related fuel spikes while adjusting strategies to offset costs. United maintains its focus on stabilizing profitability as market conditions evolve.