NEW YORK: Strong travel demand boosted United Airlines' profits, but the carrier projected Tuesday lower than expected fourth-quarter results due to surging jet fuel costs.
The big US carrier reported third-quarter profits of US$1 billion, up 8.5% from the year-ago level following a 17.4% rise in revenues.
United pointed to "broad-based strength" across its businesses, including premium service, basic economy and cargo.
But airline results have been buffeted by significant increases in jet fuel prices, among the refined petroleum products that have seen significant supply curtailments from the US-Iran war.
United said jet fuel costs rose US$1.8 billion in the third quarter compared with the 2025 period.
What's more the airline projects even higher jet fuel prices in the current fourth quarter, seeing US$4.80 per gallon, up 23% from the third quarter.
The company projects fourth-quarter profits of between 50 cents and US$1.50 per share, compared with the US$1.75 per share forecast by analysts.
Shares fell 1.5% in after-hours trading.