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United Airlines Holdings Inc (NASDAQ:UAL, XETRA:UAL1) has reported higher-than-expected first quarter earnings but cut its full-year profit outlook, citing rising fuel costs linked to geopolitical tensions in the Middle East.
Shares fell more than 6% following the announcement.
The carrier now expects adjusted earnings of $7 to $11 per share for 2026, down from its January forecast of $12 to $14 per share. The revised guidance reflects what the airline described as increased cost pressures, particularly in jet fuel, amid continued volatility in global energy markets.
For the first quarter, United Airlines delivered adjusted earnings of $1.19 per share, ahead of analyst expectations of $1.07 per share.
Revenue was $14.61 billion, also slightly above consensus estimates of $14.37 billion.
Net income rose sharply year over year to $699 million, or $2.14 per diluted share, compared with $387 million, or $1.16 per share, in the same period last year.
On an adjusted basis, net income was $0.4 billion, with adjusted pre-tax earnings of $0.5 billion. The company reported a pre-tax margin of 6.0%, up 2.3 percentage points from a year earlier, while adjusted pre-tax margin rose to 3.4%.
Revenue per available seat mile rose 6.9% year-over-year. Capacity increased 3.4% compared with the first quarter of 2025.
Operating expenses rose as well, with cost per available seat mile excluding fuel up 5.9%. The average fuel price per gallon was $2.78, contributing to the airline’s revised outlook for the remainder of the year.
The company highlighted operational performance during the quarter, noting that the airline achieved its best first-quarter on-time departure rate among the eight largest US carriers.
“Our strong financial position and success in winning brand-loyal customers enabled United to quickly make tactical adjustments to higher fuel prices while maintaining our long-term focus,” United CEO Scott Kirby said.
Despite the improved quarterly performance, United said it plans to reduce its previously scheduled capacity growth by about five percentage points for the rest of the year. The airline now expects third- and fourth-quarter capacity to be flat to up approximately 2% year over year.
United said it remains focused on long-term strategic initiatives, including expanding premium and economy cabin segmentation and further developing its MileagePlus loyalty program. The airline also repurchased approximately $27 million in shares during the quarter.