United Airlines offers wary outlook as fuel prices bite

Published: 2026-04-22 04:06:29 ET UAL

Published on 04/22/2026 at 04:06 am EDT

STORY: :: United Airlines

United Airlines is warning of a tougher stretch ahead.

The carrier on Tuesday forecast second-quarter and full-year profits below Wall Street estimates.

Higher jet fuel prices are squeezing margins and clouding its near-term outlook, though demand for premium travel remains strong.

The airline's shares bounced back in after-hours trading, reversing earlier losses.

That was as geopolitical tensions eased...

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after U.S. President Donald Trump's extension of the Iran ceasefire,  raising the prospect of lower energy prices.

United said its outlook is based on jet fuel prices as of mid-April.

Results could land at the high end of guidance if fuel costs fall, or at the low end if prices climb further.

The company pegged fuel costs at about $4.30 per gallon this quarter, highlighting the strain from elevated prices.

The airline sees itself recovering at best 50% of the fuel price hikes through fares and other revenue measures in the second quarter.

That recovery rate is presumed to improve later this year, rising in the third quarter and potentially reaching near full recovery by the fourth.