Shares of United Airlines (NASDAQ:UAL) edged 1.2% higher in premarket trading on Wednesday, even after the carrier lowered its full-year earnings forecast, citing rising fuel costs driven by the Iran conflict.
The airline now expects adjusted earnings for 2026 to come in between $7 and $11 per share, down from its previous guidance of $12 to $14 issued in January, before the escalation in the Middle East. Analysts had been projecting full-year adjusted earnings of $9.58 per share.
Raymond James analyst Savanthi Syth said he believes the revised guide “would be viewed as in-line despite the mid-point being somewhat below expectations given United’s historically conservative nature.”
Like its peers, United is scaling back some planned capacity this year in an effort to manage costs. Markets had already begun adjusting expectations, but the company still reported strong top-line growth, with revenue rising more than 10% year-on-year to $14.61 billion from $13.21 billion, slightly ahead of the $14.39 billion consensus estimate.
Fuel costs were a major headwind during the quarter, with expenses increasing by $340 million compared with the same period in 2025.
Airline executives have noted that demand remains solid, even as fares and baggage fees have been raised to offset higher fuel prices.
United posted net income of $699 million, or $2.14 per share, up sharply from $387 million, or $1.16 per share, a year earlier. On an adjusted basis, earnings came in at $1.19 per share.
Unit revenue improved across all segments, including domestic U.S. routes, where it climbed 7.9% to $7.9 billion, highlighting strong pricing power during the quarter.
“These are results our employees can be proud of, and they show the resilience of our long-term strategy, even in the face of escalating fuel expense,” CEO Scott Kirby said in an earnings release.
“Moments of uncertainty for the airline industry may also create opportunity for United,” Kirby said. “We have demonstrated quarter after quarter that we are built to withstand disruptions, and this moment is no different. We’ll stay nimble in the short term while continuing to grow the airline and invest in our customers, product and people.”
Wolfe Research analyst Scott Group noted that with United shares moving higher in premarket trading, “the stock is now trading at 11x the midpoint of its guidance that arguably should be viewed as trough EPS.”