United Airlines Holdings Inc (NASDAQ:UAL) has been affected by rising jet fuel prices, leading to an increase to its third-quarter fuel price outlook in September.
The air carrier now expects fuel costs of $2.95 to $3.05 a gallon for the three months to September 30, 2023, up from previous guidance of $2.50 to $2.80 a gallon.
Still, it reiterated guidance for 3Q revenue growth at 10% to 13% from a year ago and for capacity to be up by about 16%.
Shares of United were trading nearly 1.5% higher on Tuesday ahead of its earnings release, at $40.10.
Analysts polled by Zacks Investment Research expect revenue to be near the top end of its guidance, growing by 12% to $14.44 billion from a year ago.
While the airline didn’t provide new earnings guidance in September, in July, it guided for 3Q earnings of $3.85 to $4.35 per share. Analysts are less bullish, with a consensus estimate of $3.39 per share. Still, that would be a 21% improvement on 3Q 2022.
United shares have gained 5% year to date.
--Updates with share price--
Contact the author at stephen.gunnion@proactiveinvestors.com