United Airlines Holdings Inc. has lowered its second-quarter and full-year profit forecasts, anticipating results below Wall Street estimates. The Chicago-based carrier slashed these projections as rising jet fuel prices squeeze margins and cloud the near-term outlook.
The increase in fuel costs, driven by the war in the Middle East and tightening crude oil supplies, added $340 million to the carrier's expenses this quarter. Other airlines have similarly reported pressure resulting from the conflict.
To contend with these costs, United has made tactical adjustments. Despite the outlook for the rest of the year, demand for premium travel remains robust, and the company's first-quarter earnings exceeded Wall Street expectations.