UBS Cuts United Airlines 2026 EPS to $10.22 and Price Target to $134
UBS trimmed United Airlines’ 2026 EPS estimate to $10.22 from $13.56 and cut its price target to $134 from $147 after early-March jet fuel price spikes. Analysts say United’s pending flight attendant contract could lower labor expenses to offset fuel costs, even as stocks have plunged 17–30% since late February.
1. UBS Lowers United’s 2026 Outlook
UBS reduced United Airlines’ 2026 earnings per share forecast from $13.56 to $10.22 and trimmed its price target to $134 from $147, reflecting a broader cut in sector-wide profit estimates for Delta, American and Alaska carriers.
2. Rising Fuel Prices and Inventory Impact
Jet fuel prices spiked in early March, but United holds roughly two weeks of fuel inventory, limiting the cost drag to the latter half of the first quarter and partially shielding its Q1 earnings.
3. Labor Cost Advantage and Stock Performance
United’s unresolved flight attendant contract could yield lower labor costs to offset rising fuel expenses, while airline shares have fallen 17–30% since late February, suggesting the sector may be nearing a valuation bottom.