United’s profit forecast dragged down by jet fuel costs

United Airlines announced an 8.5% increase in Q3 profit to $1 billion, highlighting robust performance across its premium, basic economy, and cargo divisions. (United Airlines image) New York - While soaring travel demand propelled United Airlines' profits, the carrier projected lower-than-anticipated fourth-quarter earnings due to escalating jet fuel expenses.

The American airline disclosed a Q3 profit of $1 billion, marking an 8.5% increase from the previous year, buoyed by a 17.4% revenue surge. United attributed its solid performance to its diverse portfolio, encompassing premium service, basic economy, and cargo. However, the airline's results have been significantly impacted by the sharp rise in jet fuel prices, a commodity heavily affected by supply constraints stemming from the US-Iran conflict.

United disclosed that jet fuel costs surged to $1.8 billion in the third quarter, compared to the 2025 period. Moreover, the airline anticipates even higher jet fuel prices in the upcoming fourth quarter, estimating $4.80 per gallon, a 23% increase from the previous quarter. The company forecasts fourth-quarter profits of $0.50 to $1.50 per share, falling short of the $1.75 per share estimate from analysts. United's stock declined by 1.5% in post-market trading.