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United Airlines reported a significant surge in first-quarter earnings on Tuesday, though the carrier was forced to lower its overall profit projections for 2026.
While the major U.S. airline saw an 80.4 per cent increase in profits compared to the previous year, reaching $699 million, the ongoing conflict in the Middle East has caused jet fuel prices to spike.
Consequently, United has revised its annual earnings forecast downward to between $7 and $11 per share, a notable drop from its previous estimate.
Despite the financial adjustments, United emphasised that consumer demand for travel remains robust.
To manage the rising costs, the airline plans to reduce its total flight capacity for 2026 by five per cent.
Management stated that the company will remain flexible, adjusting flight schedules as needed to balance operational costs with market demand.
Total revenues for the quarter grew by over 10 per cent, but these gains were partially offset by a 12.6 per cent rise in fuel expenses.
The aviation industry is bracing for a more severe impact on fuel costs during the second quarter.
While prices remained relatively stable early in the year, they soared following joint military strikes on Iran in late February.
United anticipates that second-quarter fuel prices will average $4.30 per gallon, representing a 55 per cent increase over the first-quarter average.
This volatility underscores the broader economic pressure that geopolitical instability continues to place on the global travel sector.
