United Airlines cut its 2026 profit outlook as fuel costs rise, but said passengers keep booking despite higher fares. It expects fourth-quarter adjusted earnings of 50 cents to $1.50 a share, well below the $1.76 analysts expected, and at the top of that range its 2026 adjusted earnings would be no more than $7.22 a share, down from the $9 to $11 forecast in mid-July. Fuel is expected to average $4.80 a gallon in the fourth quarter, up from $3.90 in the third, and its fuel bill rose close to 62% in the quarter to $4.84 billion. Third-quarter adjusted earnings of $2.54 a share narrowly missed estimates of $2.57, while revenue rose 17.4% to $17.88 billion and passenger counts grew more than 2%.
Summary written by Upside AI from the original article. Read the source for full details.
Keywords
fuel pricesearningsUnited Airlinesaviation
Open a keyword to see other news on the same topic.
Related news
- Aeromexico ( AERO ) Q3 2026 Earnings Call Transcript
Grupo Aeroméxico (AERO) reported record third-quarter revenue of $1.6 billion, up 13.6%, driven by strong international demand and pricing actions to offset fuel costs. Operating income was $189.6 million, an 11.7% margin, while net income reached $40.6 million, or $0.03 per share, as fuel expense rose 57.6% to $469.0 million. The average fuel price was $3.99 per gallon versus $2.48 a year earlier, a historical high for the company. Liquidity stood at $1.2 billion and the company repaid $7.2 million of debt, and for the fourth quarter it guided to 14.0% to 16.0% revenue growth and a 7.5% to 9.5% operating margin, assuming an all-in fuel price of $4.50 per gallon.
- Aeromexico ( AERO ) Q3 2026 Earnings Call Transcript
Aeromexico reported third-quarter revenue of $1.6 billion, up 13.6%, driven by strong international demand and pricing actions to offset fuel costs. Fuel expense rose 57.6% to $469.0 million as the average price reached $3.99 per gallon versus $2.48 a year earlier, adding $171.5 million in incremental fuel costs. Operating income was $189.6 million (11.7% margin), with adjusted EBITDAR of $389.2 million and net income of $40.6 million, or $0.03 per share. Liquidity stood at $1.2 billion, including $965.1 million in cash. For Q4, the company guided to 14.0%–16.0% revenue growth and a 7.5%–9.5% operating margin, assuming an average all-in fuel price of $4.50 per gallon, and expects a 21.5%–22.5% adjusted EBITDAR margin for FY2026.
- Aeroméxico Reports Unaudited Third Quarter 2026 Results
Aeroméxico reported unaudited third-quarter 2026 results, with record revenue of $1.6 billion, up 13.6% year over year, driven by international passenger demand, premium cabins, loyalty and cargo, which grew 15.8%. Fuel expense rose 57.6% to $469.0 million as jet fuel prices hit historic highs, but adjusted EBITDAR reached $389.2 million, a 24.0% margin, and operating income was $189.6 million, an 11.7% margin. The company recognized $48.7 million from an updated loyalty program breakage estimate, its first such alignment since 2018. Management expects fourth-quarter revenue to grow about 15% year over year, assuming an average all-in fuel price of about $4.5 per gallon and an exchange rate of 18.0 Mexican pesos per U.S. dollar.
- American Airlines Is Now Down 23% This Year: Is AAL Stock Dead Money or Due for a Bounce?
American Airlines shares are down 23% year to date at $11.87, lagging United (down 14%), Delta (up 8%), the U.S. Global Jets ETF (down 8%) and the S&P 500 (up 13%). Higher fuel costs drove the drop: in Q2 2026 revenue rose 16.3% to $16.7 billion, but aircraft fuel expense jumped 83.3% to $4.9 billion, operating margin fell to 2.7% from 7.9%, and net income dropped 88.2% to $71 million. Management cut its full-year adjusted outlook to a range from a loss of $0.65 to a profit of $0.65 per share, and guided to a Q3 adjusted loss of $0.70 to $0.10 per share. Premium revenue per unit rose 13.4% and managed corporate business grew 26%, but the company carries a stockholders' deficit of $3.97 billion and total debt of $34.7 billion. The article says the stock could rebound if fuel prices ease, and Q3 results are expected on October 22.
- Middle East war adds pressures on global airlines
Executives at major global airlines warned that the industry faces a prolonged period of financial strain, as persistently high jet fuel prices driven by the war in the Middle East raise operating costs and could push up ticket prices. They described rising fuel costs as a new reality and noted that fuel hedging contracts, which have cushioned price swings, are nearing expiration, which could squeeze profit margins in coming years. Airlines are watching whether inflation and a possible economic slowdown weaken travel demand, and are tightening cost controls, reassessing fleet and expansion plans, and investing in efficiency and technologies including artificial intelligence. The sector is still recovering from the COVID-19 pandemic.
- American Airlines Rises 5% Ahead of Earnings as Oil Prices Ease; United Airlines and Delta Climb 3%
American Airlines (AAL) rose 5% to $12.27, United Airlines (UAL) gained 3% to $98.46 and Delta Air Lines (DAL) climbed 3% to $76.75 as West Texas Intermediate crude fell 1.5% to $97.05 per barrel. Jet fuel is among the airlines' largest costs, and most U.S. carriers don't hedge fuel, so lower oil prices ease margin pressure. American has guided to a loss per share for Q3 2026, though analysts expect higher revenue than a year earlier after record operating revenue in Q2. The U.S. Global Jets ETF (JETS) rose 4% to $26.71, while the SPDR S&P 500 ETF (SPY) gained 0.6% to $771.16. The article suggests American's pre-earnings gain may reflect positioning ahead of the report, which could reverse quickly if results or commentary fall short.
Related markets
Latest news
- U.S. CFTC sets agenda for AI forum, exploring trading and agentic finance
The U.S. Commodity Futures Trading Commission released the agenda for its first “Frontier Forum” event, hosted by its Innovation Task Force on October 28, to discuss how AI may change U.S. derivatives markets. The session will look at how AI could affect price discovery and risk management, and will hear from leaders of firms including Ornn, Architect and Liquid Compute. Participants will also explore how traders’ own AI agents may operate under CFTC regulations. CFTC Chairman Mike Selig said super intelligence is poised to transform financial markets.
- 2 Dividend Stocks Crushing the Market in 2026 (and Which Ones Can Keep Going)
The article examines Johnson & Johnson (JNJ) and Amgen (AMGN), two dividend stocks that have outperformed the market in 2026. For J&J, revenue and earnings beat expectations and guidance was slightly raised, but its medtech unit faces weaker Impella demand and a Class 1 recall in the U.S.; the article still sees long-term prospects intact, citing new drug launches, the OTTAVA surgical system, a proposed $5.5 billion talc settlement and a 64-year dividend increase streak. Amgen's second-quarter revenue rose 10% to $10.1 billion despite FDA moves to remove Tavneos and falling denosumab sales after losing exclusivity. The article says growth drivers such as Tezspire, Tepezza and the MariTide obesity candidate could offset these headwinds.
- Wallet Linked to Drift Exploit Sends $61 Million in Ethereum to Tornado Cash
Wallets linked to Drift's April 1 exploit moved about 25,700 Ethereum, worth roughly $61.56 million, into the Tornado Cash mixer over about two hours on Tuesday. Arkham data shows 71 addresses tied to the attacker still hold 81,454 ETH, worth about $198.58 million, after an earlier 23,095 ETH transfer in July. The attacker gained admin powers, introduced a fake token and used it to borrow real liquidity from Drift's Solana vaults, in an exploit totaling $295 million. Drift opened claims for its DFX recovery token on Oct. 1, and early redeemers received roughly 0.0104 USDT per token, about a penny per dollar lost.
- US stocks rise after companies deliver strong profits and oil prices retreat
U.S. stocks rose Tuesday after strong profit reports from Equifax, Hasbro and others, while oil prices eased from near their highest since the Iran war began; the S&P 500 added 0.4%, and the Dow rose 1% at 12:41 p.m. ET. Equifax rallied 10.3%, Hasbro rose 7.5% and 3M gained 6.6%, while Brent crude fell 0.8% to $108.69, helping airlines such as American Airlines and United Airlines. Braze soared 51.6% to $45.32 after Salesforce agreed to buy it for $47.50 a share in cash, but General Motors sank 8.3% despite a bigger profit and a forecast midpoint below expectations. AI stocks stayed volatile: CoreWeave swung between gains and losses, and South Korea’s Elice fell 32% on its first trading day in Seoul.
- Dollar Slips Against Franc After Briefly Dipping Below 0 . 8225
On Oct. 20 the U.S. dollar briefly slipped below 0.8225, a support level in FXStreet’s technical analysis, before rebounding ahead of the Federal Reserve’s next decision. At 4:04 p.m. ET it bought 0.8245 Swiss francs, down 0.24%, within a session range of 0.8223 to 0.8271. Swiss data showed September imports rose 24.9% from August to CHF 21.881 billion and exports rose 1.5% to CHF 23.234 billion, narrowing the surplus to about CHF 1.4 billion mainly on an 87.8% jump in chemical and pharmaceutical imports. MUFG said overseas investors bought $942 billion of U.S. equities in the 12 months to July 2026, and its Oct. 16 research said fading AI enthusiasm could threaten dollar support. The Fed raised its target range by 0.25 percentage point to 3.75%–4% on Sept. 16 and will announce its next decision on Oct. 28.
- Wall Street diverges Tuesday , industrials advance , techs slip
Industrial stocks led U.S. markets on Tuesday while tech lagged, though AI stocks firmed after recent sell-offs. The Dow Jones Industrial Average rose 531.39 points, or 1.02%, to 52,497.42, the S&P 500 gained 22.02 points, or 0.29%, to 7,712.75, and the Nasdaq Composite slipped 0.02% to 26,424.82. The U.S. dollar weakened against major currencies, with EUR-USD at 1.1236, GBP-USD at 1.3381 and USD-JPY at 158.22. Major European indices drifted lower, with the FTSE 100 down 0.29% to 10,733.00, while Asian markets diverged, with Japan's Nikkei 225 down 1.30%, South Korea's KOSPI plunging 3.73% and Indonesia's IDX Composite surging 5.65%. Jake Behan of Direxion said upcoming hyperscaler earnings would be the next major test for the AI trade, with guidance on ROI and 2027 capex seen as more important than headline results.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.