United Airlines (UAL) Q1 2026 earnings

United Airlines It lowered its 2026 earnings outlook on Tuesday as it grapples with a rise in jet fuel prices due to the Iran war.

United said it could earn between $7 and $11 per share on an adjusted basis this year; That was below the previous estimate of $12 to $14 per share it announced in January, more than a month before the United States and Israel attacked Iran.

The carrier, like others, is shortening some of its planned flights this year to cut costs. As a result, Wall Street was already adjusting its expectations for this year. Analysts surveyed by LSEG had forecast United’s adjusted full-year earnings of $9.58 per share.

United is forecasting adjusted earnings of $1 to $2 per share for the second quarter. Analysts were expecting $2.08 per share this quarter. United predicted fuel prices would average $4.30 per gallon in the second quarter.

The carrier said it expects its revenue to cover 40% to 50% of the fuel price increase in the second quarter, 80% in the third quarter and 85% to 100% by the end of the year.

United reiterated that it was adjusting its schedules to accommodate higher fuel levels; He stated that capacity is expected to remain stable at around 2% annually in the second half of the year. It grew by 3.4 percent in the first quarter.

Here’s what United Airlines reported for the quarter ending March 31 compared to Wall Street’s expectations, based on estimates compiled by LSEG:

• Earnings per share: $1.19 adjusted, expected $1.07
• Revenues: 14.37 billion dollars is expected against the expectation of 14.61 billion dollars

Overall revenue increased more than 10% to $14.61 billion, up from $13.21 billion a year earlier.

In the first quarter, United’s net income rose 80% to $699 million, or 2.14 cents per share, compared with net income of $387 million, or 1.16 cents per share, a year earlier. Adjusted for one-time items, United reported earnings of $1.19 per share.

Unit revenue increased across all reported segments, including U.S. domestic flights; increased 7.9% year-over-year to $7.9 billion, indicating strong pricing power in the quarter.

“These are results our employees can be proud of and demonstrate the resilience of our long-term strategy, even in the face of rising fuel costs,” CEO Scott Kirby said in an earnings call.

Jet fuel in the U.S. sold for $3.51 a gallon on Monday, according to prices assessed by Platts, down from a peak of $4.78 on April 2, but well above the $2.39 on Feb. 27, the day before the first attacks on Iran.

Airline executives said demand remained strong even as they increased ticket fares and checked baggage fees as they passed on rising fuel prices to customers. The industry has become more dependent on travelers willing to travel Those who pay more for flights and larger seats and are less affected by price increases.

Kirby swam potential merger with American Airlines That statement was made to a Trump administration official earlier this year, but President Donald Trump said he was against the idea, according to a person familiar with the matter.