United Airlines Q1 EPS Slashed After Jet Fuel Jumps 58% to $3.95
United Airlines warned a meaningful Q1 impact after jet fuel prices jumped 58% to $3.95 per gallon, exposing the carrier fully due to lack of hedges. TD Cowen slashed Q1 EPS estimates to $0.05-$0.22 from $1.00-$1.50 and the stock dropped 4%, extending a 10% decline.
1. Jet Fuel Price Surge
Jet fuel prices climbed 58% to $3.95 per gallon as regional conflict escalated, leaving United Airlines fully exposed due to absence of fuel hedges.
2. Earnings Forecast Revisions
TD Cowen cut Q1 EPS estimates to a range of $0.05–$0.22 from an earlier $1.00–$1.50 projection, citing higher fuel expenses and potential margin pressure.
3. Stock Performance Impact
United Airlines shares fell 4% on the news, extending a cumulative 10% decline since the conflict began as investors priced in rising operating costs.
4. Broader Energy and Economic Pressures
Crude oil surged toward $90 per barrel after supply disruptions closed part of the Strait of Hormuz, while nonfarm payrolls fell by 92,000 in February, heightening concerns over demand and costs.