United Airlines reported second-quarter results that exceeded Wall Street expectations, despite facing a significant increase in fuel costs. For the quarter ending June 30, United posted adjusted earnings per share of $1.99, surpassing the expected $1.88, and revenue of $17.67 billion, slightly above the anticipated $17.61 billion [1]. However, the airline highlighted that escalating fuel prices have added nearly $6 billion to its annual expenses compared to initial 2026 projections, with second-quarter fuel costs rising 84% year-over-year to $2.3 billion [1].
Jet fuel prices at major U.S. airports have surged 34% in July alone, driven by ongoing geopolitical tensions between the U.S. and Iran, according to Argus data cited by Airlines for America [1]. United stated that it expects to cover up to 90% of these higher costs in the third quarter and all of them in the fourth quarter [1]. The airline also noted that since the beginning of July, rising fuel prices have negatively impacted third-quarter adjusted earnings by $1.12 per share [1].
Despite these cost pressures, United's revenue grew 16% year-over-year, reaching $17.67 billion, with total unit revenue up 12.1%—the highest growth since early 2023, according to FactSet [1]. The company saw increased revenue across premium, corporate, and basic economy tickets, as well as for both domestic and international travel [1]. Net income, however, fell more than 17% to $805 million, or $2.46 per share, with adjusted net income at $649 million, or $1.99 per share [1].
Looking ahead, United forecast third-quarter adjusted earnings per share between $2.50 and $3.50, below analysts' estimates of $3.60, and full-year adjusted earnings per share between $9 and $11, at the higher end of its previously revised range [1]. The airline indicated it may further reduce capacity plans due to the elevated fuel costs [1]. United executives are scheduled to discuss these results in an earnings call on Thursday at 10:30 a.m. ET [1].
CONCLUSION
United Airlines managed to beat second-quarter earnings and revenue estimates despite a dramatic rise in fuel costs, which are expected to add $6 billion to annual expenses. While demand remains strong and revenue growth is robust, the airline faces ongoing margin pressure and may adjust capacity plans if fuel prices remain volatile. Forward guidance reflects caution, with third-quarter earnings projected below analyst expectations.