said more expensive jet fuel and a halt to the carrier's Tel Aviv flights during the Israel-Hamas war will eat into its profits in the last three months of the year.
For the current quarter, the Chicago-based carrier estimated adjusted earnings of between $1.50 and $1.80 a share, below analysts' forecasts of $2.06.
United would then earn between $9.55 and $9.85 a share, on an adjusted basis, down from its in July of between $11 and $12 a share, based on its projection for the fourth quarter. Jet fuel prices in major U.S. airports are up nearly 25% since the start of summer.
Its shares dropped around 4% in after-hours trading.
United and other U.S. and international carriers their flights to Israel earlier this month. United had more service to Israel than any of the U.S.-based airlines with service from Washington, D.C.; Newark, New Jersey; and San Francisco.
United said its fourth-quarter revenue will rise year over year between 9%, if Israel flights remain suspended through the end of the year, and 10.5% if the suspension lasts only through October. Its costs, excluding fuel, will likely rise between 3.5% and 5% in the fourth quarter from 2022, United said.
The service suspension comes after a robust summer for air travel with revenue growth for outpacing sales of domestic tickets. That has put big, global carriers such as United and on better footing than some airlines such as , which focus more on U.S. cities and expect losses.
Here's what for the third quarter compared with what Wall Street expected, based on average estimates compiled by LSEG, formerly known as Refinitiv:
United posted third-quarter net income of $1.14 billion, or $3.42 a share, versus $942 million, or $2.86 a share, a year earlier. Adjusting for one-time items, United posted earnings per share of $3.65.
Revenue rose to $14.48 billion from $12.88 billion.
The carrier will hold a call with analysts and media on Wednesday at 10:30 a.m. ET, when it will face questions on fourth-quarter demand and how the carrier plans to tamp down rising costs.
