\n<\/p>\n
United Airlines (UAL) reported first quarter earnings after the bell that topped estimates on Tuesday, with its premium business partly blunting the effect of surging fuel costs, though the airline did trim its 2026 forecast.<\/p>\n
Surging oil prices have hit airlines hard, with little relief from the on-again, off-again nature of the Strait of Hormuz closure and whether a ceasefire can be extended in the US-Israeli war with Iran.<\/p>\n
United reported a $340 million increase in fuel expenses compared to the first quarter of 2025 due to the war.<\/p>\n
Subsequently, United trimmed its full-year adjusted EPS range to $7-$11 from the $12-$14 that it saw in January, before the war started.<\/p>\n
United stock fell over 3% in early trade.<\/p>\n
Chicago-based United reported Q1 revenue of $14.6 billion versus $14.45 billion estimated, per Bloomberg consensus, up 10% from a year earlier. This is noteworthy, as CEO Scott Kirby said last quarter that 2026 would continue the \u201crevenue momentum\u201d for the airline.<\/p>\n
United posted adjusted EPS of $1.19 versus $1.09 expected.<\/p>\n
In terms of other metrics, United reported Q1 available seat miles hit 77.70 billion versus 77.85 billion expected, with passenger revenue per available seat mile rising 7.4% year over year to $0.1695.<\/p>\n
Read more:\u00a0<\/em>Live coverage of corporate earnings<\/em><\/p>\n \u201cMoments of uncertainty for the airline industry may also create opportunity for United,\u201d CEO Scott Kirby said in the release. \u201cWe have demonstrated quarter after quarter that we are built to withstand disruptions, and this moment is no different. We\u2019ll stay nimble in the short term while continuing to grow the airline and invest in our customers, product and people.\u201d<\/p>\n United\u2019s focus on premium customers helped deflect some of the fuel price effect.<\/p>\n \u201cUnited\u2019s diverse revenue streams remained resilient, including premium revenue up 14% compared to the first quarter of 2025, loyalty revenue up 13%, and revenue from Basic Economy up 7%. Business revenue also remained strong, at up 14% for the first quarter,\u201d the airline said.<\/p>\n The company will, however, pull back five points\u2019 worth of planned capacity to save costs for the rest of the year, with Q3 and Q4 capacity growth flat.<\/p>\n Read more:\u00a0<\/em>Find the best travel credit cards for April 2026<\/em><\/p>\n Last month, United unveiled the Relax Row, a first-of-its-kind in North America economy concept that converts three coach seats into a lie-flat, couch-like surface on long-haul widebody flights. Debuting next year, the product is positioned between United Economy and Premium Plus \u2014 an attempt to pull price-sensitive families and couples up the fare ladder without the first-class Polaris price tag.<\/p>\n<\/p><\/div>\n