United: Premium Demand Up

United Airlines said premium-cabin demand kept climbing in the first quarter even as higher jet-fuel costs forced the airline to cut its 2026 profit outlook. (ir.united.com) The Chicago-based carrier reported $14.6 billion in first-quarter revenue for the three months ended March 31, up 10.6% from a year earlier, and posted diluted earnings per share of $1.19. Wall Street had expected about $14.2 billion in revenue and $1.08 in earnings per share, according to MarketBeat’s consensus data. (ir.united.com; marketbeat.com) United said premium revenue rose 14% from a year earlier, while international revenue increased 8.5% and loyalty revenue grew 9.4%. The company also reported first-quarter pre-tax earnings of about $900 million and a 6.0% pre-tax margin, up 2.3 percentage points year over year. (ir.united.com) The pressure point was fuel. On the April 22 earnings call, United said first-quarter fuel expense was $340 million higher than a year earlier, and management lowered full-year adjusted earnings guidance to $7 to $11 a share from the $11.50 to $13.50 range it gave in January. (finance.yahoo.com; blockonomi.com) United said it now expects second-quarter adjusted earnings of $3.25 to $4.25 a share and plans to trim five points of previously planned capacity growth for the rest of 2026. The carrier said industry supply is softening, with third- and fourth-quarter capacity expected to be flat to up about 2% year over year. (ir.united.com) Chief executive Scott Kirby told investors the airline is still leaning into higher-end seats, loyalty perks and segmented cabins aimed at travelers willing to pay more for comfort or flexibility. United said those products helped it deliver its strongest first-quarter financial performance in five years despite higher costs. (finance.yahoo.com; ir.united.com) That mix matters beyond airfare because premium demand is tied closely to corporate and affluent leisure travel, the customers most likely to fill business-class seats on long-haul routes. When fuel and other operating costs rise faster than airlines can raise fares, carriers often push harder on yields, schedules and travel budgets tied to those same passengers. (finance.yahoo.com; ir.united.com) United’s shares fell after the report even with the earnings beat, a sign investors focused more on the lower profit range than on the quarter’s revenue growth. The company’s next test is whether premium demand stays firm through the summer while fuel prices and industry capacity remain unsettled. (blockonomi.com; ir.united.com)