by Donald Wood
Last updated: 10:15 AM ET, Wed October 21, 2026
Rising jet fuel prices are squeezing profits at major U.S.
airlines, prompting carriers to lower earnings expectations and reconsider
flight schedules despite strong demand for air travel.
According to Reuters, Alaska Airlines and United Airlines issued weaker-than-expected fourth-quarter
forecasts on Tuesday, adding to industry concerns about operating costs heading
into the holiday travel season.
United expects adjusted earnings of 50 cents to $1.50 per
share for the fourth quarter, below the average analyst estimate of $1.76. The
airline expects to pay around $4.80 per gallon for fuel during the quarter,
about 45 cents more than analysts had anticipated.
Alaska Air Group officials warned of mounting financial
pressure, forecasting an adjusted fourth-quarter loss of $2 to $2.50 per share.
The airline expects its annual fuel bill will be $1.8 billion higher than
originally planned.
Delta Air Lines has reported similar pressures, cutting its 2026 earnings forecast
earlier this month and estimating that its annual fuel expenses will rise by $6
billion compared with 2025. Airline officials have maintained that travel
demand remains strong, with higher fares and premium-ticket sales helping
offset some of the additional expense.
American Airlines and Southwest Airlines are also navigating
the fuel-price surge, with American estimating that higher fuel prices could
add about $1 billion to its fourth-quarter costs alone and Southwest reassessing planned capacity, including potentially
reducing less-profitable flights as it works to protect margins.
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