United Airlines lowers profit forecast due to soaring fuel costs

This Chicago-based airline stated that it expects adjusted earnings per share for the second quarter to be between $1 and $2. According to data compiled by London Stock Exchange Group (LSEG), the midpoint of this range, $1.50, is lower than analysts' average expectation of $2.08. The company expects full-year earnings per share to be between $7 and $11, while the general market expectation is around $9.58. United Airlines noted that, based on data as of April 17, it anticipates fuel costs for this quarter to be about $4.30 per gallon, highlighting the pressure from rising energy costs. The airline said it expects to recover only 40% to 50% of the increase in fuel costs through ticket prices and other revenue measures in the second quarter, rising to 70% to 80% in the third quarter, and reaching as high as 85% to 100% in the fourth quarter.