United Airlines Holdings NASDAQ:UAL, the Chicago-based parent of United Airlines, has raised the lower end of its 2026 earnings forecast as strong premium and international travel demand continues to support results despite higher fuel costs. The airline now expects adjusted full-year earnings of $9 to $11 a share, compared with its previous forecast of $7 to $11, placing the midpoint close to Wall Street's average estimate of $10.51. United also reported adjusted second-quarter earnings of $1.99 a share, ahead of the $1.85 expected by analysts surveyed by Bloomberg. The results suggest that demand from higher-spending travelers may be helping the airline absorb part of the pressure from elevated operating expenses.
However, United's third-quarter outlook came in below market expectations, sending the company's shares down about 3% in postmarket trading. The airline expects adjusted earnings of $2.50 to $3.50 a share for the quarter, below Wall Street's average estimate of $3.62, while management expects approximately $6 billion in additional fuel costs during 2026. Jet fuel prices on the US Gulf Coast were around $3.67 a gallon on Tuesday, below their wartime peaks but still considerably above pre-war levels of roughly $2.30 a gallon. Delta Air Lines (DAL), a major US airline serving premium and international travelers, has also said that resilient demand helped offset higher fuel expenses, reaffirming its annual profit forecast despite recording its highest quarterly fuel expense in company history.
United is also adjusting its cabin products as airlines seek to create greater differences between fare categories and attract higher-value customers. The carrier plans to replace the middle seat in selected Economy Plus rows on 50 Airbus, a European aircraft manufacturer, A321XLR aircraft with a shared table, giving aisle and window passengers additional space. The configuration is expected to launch on domestic flights later in 2026 before expanding to international routes in early 2027. Delta has taken a different approach by introducing lower-priced Basic fares in first class and international premium cabins that include the seat but remove benefits such as lounge access and advance seat assignments. These contrasting strategies suggest that both airlines are testing new ways to strengthen premium revenue while managing the financial pressure created by higher fuel costs.