United Air falls as war, costs drive ‘bleak’ profit outlook

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. “Guidance is bleak and worse than our estimates,” Helane Becker, an analyst with TD Cowen, said in a note. “Given the projections that this will be a long war, we are looking at the lower end of the forecast range and assuming no service until at least year-end.” US carriers suspended service to Tel Aviv earlier this month after the Hamas attack on Israel, and United has said it won’t restart flights “until conditions allow.” United has the most service to Tel Aviv among US-based airlines, accounting for 2% of the carrier’s annual capacity, with flights from San Francisco, Washington, Chicago and Newark, New Jersey. United operates 28 weekly flights between the US and the Israeli city.<br/>