United Airlines slashed its full-year earnings forecast on Tuesday, blaming higher jet fuel costs driven by the war in the Middle East. The airline now expects adjusted earnings of $7 to $11 per share for 2026, down from its prior January guidance of $12 to $14 per share.
United's Q1 adjusted earnings came in at $1.19 per share, and revenue reached $14.61 billion. That cleared analyst forecasts of $1.07 per share and $14.37 billion, respectively, according to CNBC. The carrier's quarterly net income reached $699 million, or $2.14 per share diluted, jumping 80% from the $387 million, or $1.16 per share, it earned in the same period of 2025.
Revenue overall climbed 10.6% from a year earlier, the company said. Unit revenue rose across every reported segment, including a 7.9% gain in domestic passenger revenue to $7.9 billion. Loyalty revenue grew 13% compared to the first quarter of 2025. Premium and business revenue each posted 14% gains.
In response to elevated fuel prices, United announced a roughly five-point cut to its previously planned flying for the remainder of 2026, capping potential third- and fourth-quarter capacity at 2% above year-ago levels. For the second quarter, the company projected adjusted earnings of $1 to $2 per share and that estimated fuel would average $4.30 a gallon. U.S. jet fuel prices stood at $3.51 a gallon Tuesday, according to CNBC, well above the $2.39 a gallon recorded on Feb. 27, when U.S. strikes first hit Iran.
United CEO Scott Kirby said in a statement that the results "show the resilience of our long-term strategy, even in the face of escalating fuel expense."
Kirby is expected to face questions about a potential airline merger on the company's earnings call, having raised the idea of a deal with American Airlines earlier this year.
President Donald Trump said publicly he opposed the idea, and American Airlines rejected it last week.
"I don't like having them merge," Trump told CNBC's "Squawk Box."
Alaska Airlines also withdrew its 2026 guidance over fuel prices. CEO Ben Minicucci disclosed to analysts that the carrier had passed along roughly $25 in additional fare increases.