United Airlines Holdings Inc (NASDAQ:UAL) has already warned investors to expect a dip in earnings when it reports back for the fourth quarter after the closing bell on Monday, January 22.
After a strong third quarter on the back of strong domestic and international flight demand, the Chicago-based airline said higher fuel costs and pausing its flights into Tel Aviv, Israel during the Israel-Hamas conflict would drag on its profits in the final quarter of 2023.
With the release of its 3Q results in October, it said fuel costs had climbed 20% since mid-July and were expected to add 11% to its fuel bill in 4Q.
At the time, the airline expected to report 4Q adjusted earnings per share (EPS) of $1.50 to $1.80, down from $2.46 in 4Q 2022.
Analysts have adjusted their expectations accordingly. They now expect United to post quarterly earnings of $1.61 per share off revenue of $13.6 billion. Before the profit warning, they expected EPS of $2.26.