United Airlines says pricier fuel, war in Middle East will weigh on profits

United Airlines said more expensive jet fuel and a halt to the carrier’s Tel Aviv flights during the Israel-Hamas war will eat into its profits in the last three months of the year. For the current quarter, the Chicago-based carrier estimated adjusted earnings of between $1.50 and $1.80 a share, below analysts’ forecasts of $2.06. United would then earn between $9.55 and $9.85 a share, on an adjusted basis, down from its forecast in July of between $11 and $12 a share, based on its projection for the fourth quarter. Jet fuel prices in major U.S. airports are up nearly 25% since the start of summer. Its shares dropped around 4% in after-hours trading. United and other US and international carriers halted their flights to Israel earlier this month. United had more service to Israel than any of the U.S.-based airlines with service from Washington, D.C.; Newark, New Jersey; and San Francisco. United said its Q4 revenue will rise year over year between 9%, if Israel flights remain suspended through the end of the year, and 10.5% if the suspension lasts only through October. Its costs, excluding fuel, will likely rise between 3.5% and 5% in the fourth quarter from 2022, United said. The service suspension comes after a robust summer for air travel with revenue growth for international destinations outpacing sales of domestic tickets. That has put big, global carriers such as United and Delta on better footing than some discount airlines such as Spirit, which focus more on US cities and expect losses.<br/>