- United warned elevated fuel prices will persist through 2027.
- The carrier recovered only 72pc of extra fuel costs through revenue.
- Q3 adjusted earnings were $2.54 per share missing consensus.
- United cut roughly 5pc of planned flights over two quarters.
- Full-year earnings capped at $7.22 per share.
United Airlines has warned that elevated jet fuel prices are likely to persist through 2027. The carrier recovered only about 72pc of its extra fuel costs through revenue in the third quarter and expects a similar rate in the fourth. The airline guided fourth quarter adjusted earnings well below analyst expectations assuming fuel at roughly $4.80 per gallon.
United reported third quarter adjusted earnings of $2.54 per share missing the $2.61 analyst consensus as aircraft fuel expenses ballooned to $4.84bn (€4.45bn). The airline expects adjusted fourth quarter earnings of $0.50 to $1.50 per share far below analyst expectations. The weak final quarter caps full-year earnings at a maximum of $7.22 per share.
The airline is cutting roughly 5pc of its planned flights over the next two quarters. Reductions will hit midweek schedules, red-eyes, Chicago O’Hare capacity and include continued suspensions of routes to Tel Aviv and Dubai. United noted fuel pressure will likely remain elevated through 2027.
Scott Kirby shared “double digit margins next year would probably need lower fuel, slower industry capacity growth or continued focus on higher fares.”
