United Airlines announced a significant cut to its profit forecast for the year, now expecting adjusted earnings of between 50 cents and $1.50 per share for the fourth quarter, a decline from the $1.76 per share anticipated by analysts. This adjustment brings the airline's projected adjusted earnings for 2026 to a maximum of $7.22 per share, down from earlier expectations of $9 to $11 per share.
The increase in fuel costs is a major factor, with the airline projecting an average fuel price of $4.80 per gallon in the fourth quarter, up from $3.90 in the third quarter. Despite these challenges, United reported a net income of $1.03 billion for the third quarter, an 8.5% increase from the previous year, with revenue rising 17.4% to $17.88 billion.
CEO Scott Kirby emphasized the resilience of the airline's brand loyalty amid these pressures. The airline's fuel expenses surged nearly 62% year-over-year, totaling $4.84 billion, which has significantly impacted profitability. However, passenger counts have increased by over 2% compared to last year, indicating that demand remains strong even as airfares rise