United Airlines says it expects nearly $6 billion in additional fuel costs this year compared with earlier estimates.
Wednesday’s warning comes after a surge in oil prices sparked by the conflict in the Middle East.
The airline said the increase in prices since the beginning of July alone had added about $575 million to its expected costs for the third quarter.
Shares in the company fell around 2% in extended trade following the news.
Even so, United actually adjusted its full-year profit forecast up slightly.
It now expects earnings per share of between $9-$11.
The bottom end of that range had previously been as low as $7.
United says strong travel demand, higher fares and capacity cuts will help it overcome the fuel shock.
For the second quarter, the carrier saw earnings beat expectations at almost $2 per share, while revenue jumped 16% to almost $18 billion.
Demand remained strong, with revenue rising across different fare classes and for cargo.
Posted by: AAngeles/NET25 News
