United Airlines (UAL.O) said it expects fourth-quarter adjusted EPS of
$0.50–$1.50, below analyst consensus of $1.88, citing a sharp rise in jet fuel
costs. The carrier’s fuel expense jumped 61.6% year-on-year to $4.84 bln in the
prior quarter. United’s guidance assumes jet fuel will rise from a Q3 average of
$3.90/gal to $4.80/gal in Q4. Despite strong travel demand, elevated fuel costs
— and billions of dollars in extra costs tied to the Middle East war — are
pressing margins; carriers are responding with higher fares and schedule cuts
but see little sign of near-term relief.
