United earnings top estimates but airline expects $6 billion in added fuel costs — SkimNews
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- United Airlines beat Q2 estimates with adjusted EPS of $1.99 vs. $1.88 expected and revenue of $17.67 billion vs. $17.61 billion expected, but guided Q3 EPS to $2.50–$3.50, below the $3.60 analysts projected.
- United said higher fuel prices could add nearly $6 billion to its full-year expenses versus start-of-2026 expectations, with Q2 fuel costs already up 84% year-over-year to $2.3 billion.
- Jet fuel prices at major U.S. airports rose 34% in July alone through Tuesday, per Airlines for America data, amid escalating and de-escalating U.S.-Iran conflict.
- United said it would cover up to 90% of higher fuel costs this quarter and all of it in Q4, while Delta Air Lines confirmed it is also passing costs to flyers; demand has stayed strong despite higher fares.
- United's net income fell over 17% to $805 million despite revenue rising 16% year-over-year and unit revenue up 12.1%—the highest unit revenue growth since early 2023, per FactSet.
- United expanded flying 3.5% in Q2 with gains across premium, corporate, and basic economy tickets; CEO Scott Kirby said fares are rising not just from fuel but also maintenance, labor, and airport fees, and the carrier may further cut capacity plans.
Why it matters: For travelers, United's $6 billion fuel hit is flowing directly into ticket prices—Delta confirmed it's doing the same—while net income already fell 17% despite 16% revenue growth. United's Q3 EPS guide of $2.50–$3.50 came in below the $3.60 analysts expected, showing that even strong demand and 12.1% unit revenue growth can't fully offset fuel volatility tied to U.S.-Iran conflict escalation since the late-February strikes.
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