
United Airlines Lowers Earnings Outlook Amid Soaring Fuel Costs
United Airlines (UAL) released second-quarter and full-year profit forecasts that missed Wall Street Expectations, as soaring fuel prices squeezed margins and cast a shadow over its short-term outlook, despite robust demand for premium travel.
The Chicago-based carrier said it expects adjusted second-quarter earnings per share of $1-2. According to data compiled by London Stock Exchange Group (LSEG), the midpoint of this range, $1.50, falls below the average analyst expectation of $2.08.
The company projects full-year earnings per share of $7-11, while the market consensus stands at approximately $9.58.
United stated that, based on April 17 data, it expects fuel costs for this quarter to be around $4.30 per gallon, highlighting the pressure from rising energy costs.
The airline noted that it expects to recover 40% to 50% of the fuel cost increase in the second quarter through ticket prices and other revenue measures, with this proportion rising to 70% to 80% in the third quarter, and reaching up to 85%-100% by the fourth quarter.

