United Airlines reported second-quarter earnings that exceeded Wall Street estimates on Wednesday, with adjusted earnings per share of $1.99 versus the expected $1.88 and revenue of $17.67 billion versus the expected $17.61 billion for the quarter ended June 30. The carrier cited nearly $6 billion in added fuel costs expected for 2026 compared with its start-of-year forecast, driven by jet fuel prices that rose 34% in July alone through Tuesday according to Argus data published by Airlines for America. The fuel cost surge stems from escalating and deescalating conflict between the U.S. and Iran, with United's second-quarter fuel expenses rising 84% year-over-year to $2.3 billion, representing the airline industry's largest cost category after labor.
United Airlines Reports Q2 Earnings Above Analyst Expectations
United Airlines delivered adjusted earnings per share of $1.99 for the second quarter, surpassing the LSEG consensus estimate of $1.88. Revenue reached $17.67 billion compared with the expected $17.61 billion for the quarter ended June 30. Net income fell more than 17% to $805 million, or $2.46 a share. On an adjusted basis, the carrier reported $649 million, or $1.99 a share after accounting for one-time items. United executives will hold an earnings call Thursday at 10:30 a.m. ET.
Fuel Cost Surge Prompts Revised Full-Year Guidance
United Airlines forecast third-quarter adjusted earnings per share of between $2.50 and $3.50, below analysts' estimates of $3.60 a share. The company estimated full-year adjusted earnings per share of between $9 and $11, representing the higher end of the adjusted $7 to $11 a share range it forecast in April when it cut its January forecast after the U.S. and Israel attacked Iran in late February. According to Argus data published by Airlines for America, jet fuel prices at major U.S. airports are up 34% in July alone through Tuesday. United said the higher fuel prices could add nearly $6 billion to its expenses this year compared with what it expected at the start of 2026, with second-quarter fuel costs rising 84% from last year to $2.3 billion. The carrier said it would cover up to as much as 90% of its higher costs this quarter and all of it in the fourth quarter. United stated it is updating its forecast to include the most recent fuel prices because costs have been so volatile, noting that since the beginning of July, fuel prices have hit adjusted earnings for the third quarter by $1.12 per share. The carrier indicated it could further cut its capacity plans because of higher fuel costs this year, according to a filing.
Revenue Growth Driven by Premium and International Segments
United Airlines expanded flying 3.5% in the second quarter. Revenue rose 16% from a year earlier to $17.67 billion, with total unit revenue up 12.1% in the second quarter from last year. That marked the highest unit revenue growth since early 2023, according to FactSet. The airline reported higher revenue for premium, corporate and no-frills basic economy tickets, as well as rising unit revenue for both domestic and international trips. Rival Delta Air Lines also said it is passing on more of those higher costs to flyers, with both airlines reporting that demand has remained strong despite higher fares.
FAQ
What were United Airlines' second-quarter earnings results?
United Airlines reported adjusted earnings per share of $1.99 versus the expected $1.88 and revenue of $17.67 billion versus the expected $17.61 billion for the quarter ended June 30. Net income fell more than 17% to $805 million, or $2.46 a share.
Why did United Airlines revise its full-year earnings guidance?
United Airlines cited nearly $6 billion in added fuel costs expected for 2026 compared with its start-of-year forecast. The carrier's second-quarter fuel costs rose 84% from last year to $2.3 billion, driven by jet fuel prices that increased 34% in July alone through Tuesday according to Argus data published by Airlines for America.
How did United Airlines' revenue perform in the second quarter?
United Airlines' revenue rose 16% from a year earlier to $17.67 billion, with total unit revenue up 12.1% in the second quarter from last year, marking the highest unit revenue growth since early 2023 according to FactSet. The airline reported higher revenue for premium, corporate and basic economy tickets, as well as rising unit revenue for both domestic and international trips.
