United Airlines slashes 2026 profit outlook on fuel prices, but travelers keep booking despite higher fares - CNBC
United Airlines has lowered its 2026 profit outlook due to rising fuel costs, despite strong passenger demand and increased airfares. The airline reported a significant rise in fuel expenses, prompting CEO Scott Kirby to push for higher fare adjustments to offset costs.
Why it matters
This highlights the ongoing economic pressure of energy volatility on the aviation industry and the limits of consumer price elasticity in the travel sector.
United Airlines is slashing its profit forecast for the year as fuel costs continue to bite, but the carrier said passengers keep booking despite a jump in airfare .
United said Tuesday that it expects to earn between 50 cents and $1.50 a share on an adjusted basis in the fourth quarter, well below the $1.76 a share Wall Street analysts expected. At the high end of that range, it would bring United's 2026 adjusted earnings to no more than $7.22 per share. In mid-July, United said it was expecting full-year earnings of $9 to $11 a share.
The carrier expects to pay an average of $4.80 a gallon for fuel in the fourth quarter, up from an average price of $3.90 a gallon in the third.
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