UAL beats Q1 estimates with record revenue, strong premium demand and rising EPS despite fuel cost pressures.
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.
United Airlines CEO Scott Kirby said on Wednesday ticket prices may need to rise by as much as 15% to 20% to offset a surge in jet fuel costs, signaling a significant test of consumers' willingness to absorb higher fares as the industry grapples with volatile oil prices.
Jet fuel, which is airlines' biggest expense behind labor, has doubled since the war with Iran began.
"In the face of higher fuel prices, there will be less demand, and so we need to supply less in the market," says United Airlines CEO Scott Kirby. Watch our full interview here: Click Here
United Airlines Holdings Inc. Chief Executive Officer Scott Kirby sidestepped a question about if he's interested in buying rival American Airlines. But he did say discussions have been held with one airline about buying some assets.
CNBC's Phil LeBeau and United Airlines CEO Scott Kirby joins 'Squawk Box' to discuss the company's quarterly earnings results, reports of the company's interest in a potential merger with American Airlines, impact of the rising jet fuel prices, future of Spirit Airlines, travel demand outlook, and more.
The headline numbers for United (UAL) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
United Airlines (UAL) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.91 per share a year ago.
The Chicago-based carrier said it made tactical adjustments to contend with higher fuel prices, which increased $340 million in the quarter.
United Airlines cut its 2026 earnings forecast to an adjusted $7 to $11 a share, down from $12 to $14 a share at the start of the year, before the U.S. and Israel attacked Iran. The carrier's first-quarter earnings topped Wall Street's expectations and its unit revenue was up in every reported segment.
American Airlines issued a statement yesterday, refuting the idea of a potential merger with United Airlines.