United Air Falls as War, Costs Drive ‘Bleak’ Profit Outlook
- Tel Aviv flight suspensions to cut into revenue, earnings
- Jet fuel prices seen climbing further into fourth quarter
Every 10-cent per gallon increase in the price per year of fuel adds $2 billion in costs for the US passenger and cargo airline industry, according to Airlines for America.
Photographer: Lisi Niesner/Bloomberg
United Airlines Holdings Inc.’s shares fell the most in six months after the carrier warned that the suspension of flights to Tel Aviv and higher jet fuel costs would drag profit this quarter well below Wall Street’s expectations.
Adjusted earnings will be $1.80 a share in the fourth quarter if those flights remain grounded through Oct. 31, United said late Tuesday in a statement, compared with an average $2.10 from analysts’ estimates. If fighting in the Middle East keeps the ban in place through the end of 2023, the airline’s profit will be as low as $1.50 a share.