Key TakeawaysUnited Airlines slashed its 2026 full-year EPS forecast to $7–$11 from a previous range of $12–$14, citing surging jet fuel expenses.First quarter 2026 performance exceeded analyst projections — delivering $1.19 EPS versus the $1.15 estimate and $14.61B revenue against $14.19B forecasts.Rising jet fuel prices inflicted approximately $340M in additional costs during the first quarter, prompting the airline to reduce planned capacity by about 5 percentage points.Second quarter 2026 EPS outlook ranges from $1.00–$2.00, falling short of the $1.96 Wall Street consensus.Shares of UAL declined 1.8% to $97.13 following the announcement, while president Brett J. Hart offloaded 19,000 shares earlier in 2026.United Airlines delivered stronger-than-expected first quarter results but shocked investors by dramatically lowering its annual profit forecast, triggering a selloff despite the quarterly performance.UNITED AIRLINES $UAL Q1’26 EARNINGS HIGHLIGHTS Revenue: $14.6B (Est. $14.39B) ; +10.6% YoY Adj. EPS: $1.19 (Est. $1.08) ; +31% YoY TRASM: +6.9% YoYFY Guide: Adj. EPS: $7.00-$11.00 (Est. $9.08) Other Metrics: Capacity: +3.4% YoY Premium Revenue: +14%… pic.twitter.com/Qa1Uj9Xo8n— Wall St Engine (@wallstengine) April 21, 2026In the first quarter of 2026, UAL reported earnings per share of $1.19, surpassing analyst expectations of $1.15. The carrier generated $14.61 billion in revenue, exceeding Wall Street’s $14.19 billion projection. The company achieved net margins of 5.68% alongside a return on equity of 25.13%.However, the positive quarterly performance was quickly overshadowed. United slashed its full-year 2026 earnings per share guidance to a range of $7–$11, representing a significant reduction from the previously communicated $12–$14 range. The revision represents a potential decrease of up to $7 at the upper bound.United Airlines Holdings, Inc., UALThe primary driver: aviation fuel. Elevated Gulf Coast jet fuel prices contributed approximately $340 million in incremental expenses throughout the quarter. United emphasized that fuel price fluctuations represent a critical variable determining where actual results will fall within the updated guidance corridor.Should fuel prices moderate, United anticipates achieving the upper portion of its revised projection. Conversely, if prices remain high, outcomes will likely gravitate toward the lower boundary.Fleet and Route Adjustments AheadIn response to cost pressures, the airline intends to reduce approximately 5 percentage points from its original capacity plans. Third and fourth quarter capacity is now projected to range from flat to up 2%.For the second quarter of 2026, management provided EPS guidance of $1.00–$2.00. Analysts had been anticipating approximately $1.96, positioning United’s midpoint below market expectations.The substantial spread in the guidance range underscores how significantly fuel pricing volatility is influencing the carrier’s financial trajectory.Wall Street Maintains Optimistic StanceNotwithstanding the guidance reduction, analyst sentiment remains largely constructive. United maintains a consensus “Buy” recommendation, with an average price target of $131.19. Fifteen analysts rate the stock as Buy, one assigns a Strong Buy, and only one maintains a Hold rating.Barclays maintains an “Overweight” stance with a $150 price objective. TD Cowen recently elevated UAL to “Strong Buy” status. Wells Fargo adjusted its target downward to $130 while preserving its “Overweight” recommendation.UAL currently trades at a price-to-earnings multiple of 9.5x, positioned relatively low compared to airline industry peers. The company’s GF Score registers at 82 out of 100, suggesting robust long-term prospects based on profitability metrics and growth trajectory.Nevertheless, the financial strength assessment scores 5 out of 10, highlighting apprehensions regarding leverage and balance sheet flexibility. The debt-to-equity ratio currently stands at 1.35.Regarding insider activity, president Brett J. Hart divested 19,000 UAL shares during February at an average transaction price of $106.45, representing approximately $2 million in total value. No insider buying has been recorded over the past three months.UAL shares closed at $97.13 on Tuesday, declining $1.78 for the session, with trading volume reaching 9.74 million shares — surpassing the average daily volume of 7.19 million. The stock’s 52-week trading range spans from $65.26 to $119.21.The post United Airlines (UAL) Stock Drops as Carrier Dramatically Reduces 2026 Profit Outlook appeared first on Blockonomi.