Accra:United Airlines has reduced its profit forecast for 2026 as escalating fuel costs continue to impact earnings, despite ongoing demand from passengers who are still booking flights amid increasing fares.

According to Anadolu Agency, the airline projected adjusted earnings to range between 50 cents and $1.50 per share for the fourth quarter, which fell short of expectations. This guidance suggests that full-year adjusted earnings will reach no more than $7.22 per share, a decrease from the company's July prediction of $9 to $11 per share.

The airline anticipates an average fuel price of $4.80 per gallon in the fourth quarter, up from $3.90 in the third quarter, marking a 23% rise. These climbing fuel prices have significantly increased airlines' costs this year, affecting profitability and leading to higher fares despite steady travel demand.

In the third quarter, United reported adjusted earnings of $2.54 per share, slightly below projections. Revenue rose by 17.4% year-over-year to $17.88 billion for the three months ending September 30, just under the anticipated $17.9 billion. Net income increased by 8.5% to $1.03 billion, or $3.14 per share, compared to $949 million, or $2.90 per share, in the previous year.

Passenger demand continued to grow, with more than a 2% increase from the previous year, as reported by the airline. Domestic passenger unit revenue increased by 14.5%, while international unit revenue rose by 17.4%, indicating that higher ticket prices contributed to revenue growth. Despite strong bookings and elevated ticket prices, airlines are grappling with the challenges posed by rising fuel costs and their impact on earnings forecasts.