United Airlines Expects Profit Reduction Due to Higher Fuel Costs and Israeli Conflict

         

Summary: United Airlines projects lower profits in the last quarter of the year due to increased jet fuel prices and the suspension of Tel Aviv flights during the Israel-Hamas war.

United Airlines anticipates a decrease in profits for the current quarter, citing expensive jet fuel and the suspension of flights to Tel Aviv during the Israel-Hamas conflict as contributing factors. The Chicago-based carrier estimates adjusted earnings between $1.50 and $1.80 per share, lower than analysts’ expectations. They also revised their adjusted earnings forecast in July from $11-12 per share to $9.55-9.85 per share for the full year. Jet-fuel prices at major U.S. airports have risen by almost 25% since the summer. United’s shares fell over 5% in after-hours trading. The airline, along with other carriers, temporarily halted flights to Israel. United, in particular, had a significant number of flights to Israel compared to other U.S. airlines. The suspension comes after a strong summer in the airline industry, especially for international travel. United’s third-quarter earnings showed net income of $1.14 billion, slightly surpassing estimates. The company will address questions regarding fourth-quarter demand and cost management in an upcoming call with analysts and media.

Tags: United Airlines, profits, fuel costs, Israeli conflict, flights suspension

Share: