United Posts Record Revenue but Fuel Expenses Cut Into Profit Forecast
United Airlines reported third-quarter operating revenue of $17.9 billion, up 17.4% from a year earlier, as passenger and ancillary spending stayed strong. Adjusted earnings of $2.54 per share narrowly missed analyst estimates, and a 62% jump in fuel costs led the carrier to lower its profit outlook. The company still expects fourth-quarter revenue growth above 20%.
United’s third-quarter revenue reached $17.9 billion, 17.4% higher year over year. Adjusted earnings were $2.54 a share, just below the $2.57 consensus, while diluted earnings were $3.14. Pretax income was $1.3 billion, a 7.3% margin; adjusted pretax income was $1.1 billion, a 6.2% margin.
Premium, loyalty, and basic-economy revenue each grew in the mid-to-high teens, cargo rose 23%, and contracted business gained 26%. The carrier flew a record 49.5 million passengers with capacity up about 1.3%. Fuel expense climbed $1.8 billion to roughly $4.84 billion, and cost per available seat mile rose faster than revenue per available seat mile.
United’s weaker profit outlook could affect travelers if carriers pass higher fuel costs into fares or trim less profitable routes. Employees may feel pressure if cost concerns slow hiring, pay growth, or benefits. Investors and pension funds exposed to airline shares may see volatility, while communities dependent on air service could experience changes in schedules or connectivity. These effects are uncertain and may vary by route and region.