In its second-quarter results, United Airlines posted adjusted earnings per share of $1.99, surpassing Wall Street's expectation of $1.88, and revenue of $17.67 billion, slightly above the forecast of $17.61 billion. However, the airline is grappling with soaring fuel costs, which have surged 34% in July alone, and it estimates these costs could add nearly $6 billion to its expenses this year.
The second-quarter fuel costs rose 84% year-over-year to $2.3 billion. Looking ahead, United forecasts third-quarter adjusted earnings per share between $2.50 and $3.50, below analysts' expectations of $3.60. The airline's full-year adjusted earnings per share guidance has been updated to a range of $9 to $11, reflecting the impact of higher fuel prices.
Despite these challenges, demand for air travel remains strong, and United has seen revenue growth across various ticket categories. However, the airline may need to adjust its capacity plans due to the increased fuel costs, which have already affected its earnings by $1.12 per share in the third quarter.
United executives are set to discuss these results further in an earnings call scheduled for Thursday