United Airlines Reports Higher Second-Quarter Profit Despite Fuel Cost Surge

United Airlines reported second-quarter adjusted earnings per share of $1.99, beating the $1.88 consensus estimate. Revenue reached $17.67 billion, slightly above the $17.61 billion expected. The airline raised its full-year adjusted earnings per share forecast to a range of $9 to $11.

It had previously projected between $7 and $11 after cutting its January outlook following U.S. and Israeli strikes on Iran in late February.

Jet fuel prices at major U.S. airports climbed 34 percent in July through Tuesday amid fluctuating U.S.-Iran tensions. United said the higher prices could add nearly $6 billion to annual expenses compared with expectations at the start of 2026. Second-quarter fuel costs rose 84 percent from a year earlier to $2.3 billion.

The company plans to offset up to 90 percent of the added costs in the current quarter and all of them in the fourth quarter.

United expanded capacity 3.5 percent in the second quarter.

Total unit revenue rose 12.1 percent year over year, the highest growth rate since early 2023. The carrier reported higher revenue across premium, corporate, and basic economy fares, as well as improved unit revenue on both domestic and international routes. Net income fell more than 17 percent to $805 million, or $2.46 per share, after one-time items.

United forecast third-quarter adjusted earnings per share of $2.50 to $3.50, below the $3.60 analyst consensus. The company said it may further reduce capacity plans because of elevated fuel costs. Rival Delta Air Lines also said it is passing more of the higher fuel costs to passengers. Both carriers stated that demand has remained strong despite increased fares.