United Airlines is already saying that its fourth quarter probably won't meet Wall Street expectations.
A combination of rising fuel prices and war in the Middle East is expected to lower the profit margin for the carrier.
United already suspended its flights to Israel earlier this month and has the most service to Israel of any U.S.-based airline, so its bottom line is already being affected. In addition, CNBC notes that jet fuel prices are up about 25 percent since the beginning of summer.
Still, United had a pretty good third quarter even though it has apprehensions about the next quarter.
The airline beat Wall Street expectations by more than 30 cents on price per share and by $4 million in total revenue.
But if fuel prices don't settle down, and the war in the Middle East goes longer than expected, it’s a cause for concern. Overnight trading on Wall Street shows the stock price is already down almost 2 percent on Wednesday morning.
United says its total revenue will rise compared to last year, but how much will depend on the length of the war. United, like fellow global carriers Delta Air Lines and American Airlines, experienced a growth in international travel over the last year.
United was expected to address its potential fourth quarter problems in a conference call with analysts on Wednesday.
Separately, United avoided a potential costly problem by coming to terms with its pilots on a new contract.
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