United Airlines Lowers 2026 EPS Forecast to $7–$11 as Fuel Costs Surge
United Airlines cut its 2026 adjusted earnings forecast to $7–$11 per share from $12–$14, citing a $340 million rise in fuel costs this quarter. Q1 net income climbed 80% to $699 million on revenue of $14.61 billion, with unit revenue up 7.9% on domestic routes.
1. Forecast Revision and Outlook
United Airlines cut its full-year 2026 adjusted EPS guidance to $7–$11 from $12–$14, down sharply from January’s forecast. The reduced outlook reflects crude price pressures following recent Middle East tensions and includes plans to trim flying schedules to curb fuel-driven costs.
2. Quarterly Results and Revenue Growth
In the first quarter United reported net income of $699 million, up 80% year-over-year, with adjusted EPS of $1.19 beating estimates. Revenue rose 10.6% to $14.61 billion, slightly above consensus, while overall unit revenue climbed 7.9% on domestic routes, underscoring strong pricing power.
3. Fuel Expense Impact and Capacity Adjustments
Fuel expense increased by $340 million versus Q1 2025 as jet fuel prices surged. The carrier is trimming capacity and raising fares and bag fees to offset higher operating costs while maintaining robust passenger demand.