United Airlines beat Q2 earnings estimates but warned higher fuel prices could add nearly $6 billion to expenses. The carrier cut its Q3 guidance and may trim capacity.
United Airlines' second-quarter results topped Wall Street estimates. The carrier also warned that higher fuel prices could add nearly $6 billion to expenses this year, overshadowing the earnings beat.
For the quarter ended June 30, United reported adjusted earnings of $1.99 a share on revenue of $17.67 billion. Analysts polled by LSEG had expected $1.87 a share on $17.55 billion in revenue. Net income fell more than 17% to $805 million, or $2.46 a share.
The airline said jet fuel costs rose 84% from a year earlier to $2.3 billion in the second quarter. Based on Tuesday's fuel prices, United estimated the higher costs could add nearly $6 billion to its full-year expenses compared with what it expected at the start of 2026. The carrier said it would cover up to 90% of the higher costs this quarter and all of it in the fourth quarter.
United forecast third-quarter adjusted earnings per share of $2.50 to $3.50, below the $3.60 analysts expected. It estimated full-year adjusted earnings per share of $9 to $11, the higher end of the range it gave in April. The company said fuel prices have been so volatile that it updated its forecast to include the most recent prices. Since the beginning of July, fuel costs have hit third-quarter adjusted earnings by $1.12 a share, United said.
The carrier could further cut its capacity plans because of higher fuel costs this year, it said in a filing. United expanded flying 3.5% in the second quarter. Revenue rose 16% from a year earlier, with total unit revenue up 12.1% – the highest growth since early 2023, according to FactSet. The airline reported higher revenue from premium, corporate and no-frills basic economy tickets, as well as rising unit revenue for both domestic and international trips.
Rival Delta Air Lines also said it is passing on more of those higher costs to flyers. Both carriers said demand has remained strong despite higher fares.
United Airlines holds an Alpha Score of 68 out of 100, a Moderate rating in the Industrials sector. The score reflects the carrier's mixed positioning: strong revenue growth and pricing power offset by rising fuel costs and margin pressure.
United executives will hold an earnings call Thursday at 10:30 a.m. ET.
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