United Airlines raised its annual profit outlook on the back of strong revenue trends that are easing the pain of volatile fuel prices.

The carrier said Wednesday that adjusted earnings should hit $9 to $11 a share in 2026, lifting the low-end of its previous target by $2 a share. Analysts polled by FactSet had already been expecting the carrier to come in closer to the high-end of its targets.

Air travel demand has held up despite higher airfares, giving United and other airlines cover from turbulent swings in the price of jet fuel caused by the war in Iran, which are pressuring profits across the industry.

United said it is on track for adjusted earnings of $2.50 to $3.50 a share for the third quarter, below current estimates for $3.53 a share from analysts polled by FactSet. The outlook accounts for another surge in jet fuel prices over the past week.

After hitting record highs of more than $4.80 a gallon in April, prices had recovered to about $2.81 a gallon in early July, according to the Argus US Jet Fuel Index. After the U.S.'s ceasefire with Iran collapsed last week, prices climbed again, hitting $3.64 a gallon on Tuesday, according to the index.

United is now guiding for fuel costs of $3.69 a share in the third quarter, translating to an incremental expense of $575 million in the third quarter, or about $1.12 a share.

For the second quarter, the airline posted a profit of $805 million, or $2.46 a share, compared with $2.97 a share, in the same quarter a year earlier. Stripping out one-time items, adjusted earnings were $1.99 a share, beating analyst estimates for $1.88 a share.

United said it paid an average of $4.19 a gallon for jet fuel in the second quarter, sending its fuel expense 84% higher year over year to $5.11 billion.

Total revenue meanwhile rose 16% from a year earlier to $17.67 billion, ahead of analyst estimates for $17.62 billion, driven by higher fares and a 3.5% increase in capacity.

The gains came from both ends of the plane, with premium revenue up 16% and basic economy seats notching an 11% lift in sales.

United said revenue from its MileagePlus loyalty program jumped 11% while revenue from its freight and mail transportation services climbed 23%. Corporate travel programs and other contracted business revenue soared 27%.

Given those steady revenue trends, United said it expects to recover 80% to 90% of higher fuel costs in the third quarter and potentially 100% of it in the fourth quarter.

United rival Delta Air Lines kicked off the airline earnings season last week with a report that its second-quarter revenue also surged on higher fares and sturdy demand. The two companies are the industry's leaders in profitability. Other major carriers are set to report later this month.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

July 15, 2026 16:12 ET (20:12 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.