United Airlines Beats Earnings Expectations Amid Record Fuel Cost Increases

A United Airlines plane takes off from Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, on June 9, 2026.

Joe Raedle | Getty Images

United Airlines reported second-quarter results exceeding Wall Street estimates but warned of a $6 billion annual fuel cost surge impacting earnings, as revealed in Wednesday’s announcement.

The airline detailed its quarterly performance against analyst projections from LSEG: adjusted earnings per share reached $1.99 compared to $1.88 expected, while revenue matched forecasts at $17.67 billion.

For the upcoming third quarter, United projected adjusted earnings per share between $2.50 and $3.50, falling short of analysts’ $3.60 per share estimates. Full-year adjusted earnings guidance now ranges from $9 to $11, up from the prior $7 to $11 range due to escalating fuel costs.

Industry data from Airlines for America shows U.S. jet fuel prices surged 34% in July alone, driven by intensified U.S.-Iran conflicts. Fuel remains airlines’ largest expense after labor. United attributed this year’s $6 billion fuel cost overrun to spot market volatility, with second-quarter costs rising 84% year-over-year to $2.3 billion. The carrier plans to absorb up to 90% of these costs in Q3 and all in Q4.

Delta Air Lines similarly indicated passing higher fuel expenses to customers, though strong demand allowed resilience despite elevated fares. United emphasized its January forecast reduction following Iran-related disruptions.

Rising fuel prices reduced third-quarter adjusted earnings by $1.12 per share, prompting United to reconsider capacity plans. Despite a 3.5% fleet expansion, revenue grew 16% year-over-year to $17.67 billion, with unit revenue up 12.1%—the highest since early 2023.

Organic growth in premium, corporate, and basic economy segments fueled revenue gains across domestic and international markets. However, net income dropped 17% to $805 million ($2.46 per share), compared to $649 million ($1.99 adjusted per share) after excluding one-time charges.

United executives will discuss results during a public earnings call on Thursday at 10:30 a.m. ET.

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