What Happened
Higher Jet Fuel Costs Squeeze Airline Margins And Cloud Near Term
United Airlines has forecast second-quarter and full-year profits below Wall Street estimates due to higher jet fuel prices, which are squeezing margins and clouding its near-term outlook. Despite this, premium, corporate, and loyalty revenues remain strong. The airline expects to recover only 40-50% of the increase in fuel prices through fares and other revenue measures in the second quarter. This news was first reported by Reuters.