All articles tagged with #fuel costs
Walmart topped revenue and earnings estimates for the quarter with about $187.9 billion in sales and adjusted EPS of $0.81, but U.S. same-store sales rose only 2.6%—below expectations—driving a ~9% drop in the stock as shoppers faced higher fuel costs. E-commerce grew 23% and the company maintained guidance for modest growth in the coming year, aided by tariff refunds and price investments in key categories.
American Airlines cut its 2026 adjusted forecast to a range of a 65-cent loss to a 65-cent profit per share, citing volatile fuel prices not fully offset by higher fares. In Q2, it posted adjusted earnings of 15 cents per share on $16.74 billion in revenue (beat expectations of 3 cents and $16.71B), with GAAP net income of $71 million, down 88% year over year. For the current quarter, the airline sees an adjusted loss of 70 cents to 10 cents per share on revenue up 16%-19%, above estimates, and plans up to 5% capacity growth in Q3. It also intends to order new wide‑body aircraft and add premium seating to older jets to close the margin gap with Delta and United, though no timeline was given.
United Airlines posted a record second-quarter revenue of $17.7 billion and lifted 2026 adjusted earnings guidance to $9–$11 per share, but a sharp fuel bill limited profit; Delta, on roughly the same revenue, delivered higher total adjusted pre-tax income and margins, meaning United outpaced Delta on earnings per share due to fewer shares outstanding while Delta showed stronger overall profitability.
United Airlines is due to report Q2 after the bell, with UBS expecting EPS around $1.91 on 3% capacity growth and a 12.8% rise in unit revenue, while higher jet fuel costs remain the wildcard as prices have surged; management’s guidance on fuel recovery by Q4 and its fourth‑quarter capacity/revenue outlook will shape the full‑year EPS view.
UBS expects United Airlines' Q2 EPS near $1.91 (above the $1.85–$1.90 range and consensus), aided by about 3% capacity growth and stronger unit revenue, but higher jet-fuel costs remain the key wildcard; the main signals will be United's Q4 fuel assumptions, capacity outlook, and implied revenue growth as management seeks to model the fuel spike into year-end guidance.
Delta posted strong Q2 2026 results with 14% revenue growth and only 1% capacity growth, driven by higher fares and rising premium revenue, suggesting fare increases may be durable even as jet fuel costs rise; CEO Ed Bastian argued that higher fuel costs have catalyzed structural change that could sustain revenue momentum if oil prices soften, a narrative echoed by other major U.S. carriers and with implications for pricing, competition, and consumers.
Delta Airlines says elevated airfares are likely to persist despite a drop in oil prices, reporting a $1.4 billion quarterly profit as demand remains strong and the carrier passed about 60% of higher fuel costs to customers; premium revenue rose 17% year-over-year while main cabin sales grew 8%, and Delta has expanded premium offerings with a 'basic business' option, signaling travelers remain willing to spend on trips even as costs stay elevated.
Delta Air Lines topped expectations with Q2 adjusted revenue of $17.67 billion (a company record) and adjusted EPS of $1.56, while absorbing a $4.4 billion fuel expense. The airline reinstated its full-year 2026 guidance (adjusted EPS $6.50-$7.50; free cash flow $3-$4 billion) and expects Q3 revenue growth in the upper teens with margins of 11%-13% and EPS of $2.00-$2.50, supported by strong premium demand, loyalty revenue up 19%, and premium corporate sales up about 25%.
Delta Air Lines beat Q2 2026 estimates with adjusted EPS of $1.56 on $17.67 billion in revenue and reaffirmed its full-year outlook. Management noted it will continue passing higher fuel costs to customers as pricing power remains sturdy, aided by strong demand, premium seating strength, and corporate travel, with Q3 guidance of $2.00–$2.50 per share and mid-teens revenue growth. Net income declined year over year, while the refinery segment boosted revenue.
Aviation leaders converge on Rio for the IATA annual meeting amid persistent jet-fuel price spikes, hedging questions for carriers, and signs of potential consolidation and regional shifts as demand gradually recovers post-pandemic.
American Airlines will temporarily suspend six routes in August–September due to rising jet fuel costs tied to the Iran conflict; the affected routes are LA to Cleveland, Columbus, Pittsburgh, and Washington Dulles, plus Charlotte to Ontario and Sacramento. The cuts are temporary and passengers can be rebooked or refunded.
United abandons its planned merger with American, while budget carriers led by Spirit seek a $2.5 billion U.S. liquidity pool to offset higher fuel costs, with Spirit aiming for up to $500 million; the White House is monitoring the industry and Congress is weighing relief, backed by unions but facing Republican skepticism.
Delta CEO Ed Bastian suggested ticket prices and fees will remain elevated to bolster margins even after Iran-related oil costs ease, with Delta chairing higher baggage fees and forecasting about a $2 billion fuel-cost hit this quarter, prompting online backlash and sparking comparisons with rivals’ price hikes.
American Airlines cut its 2026 earnings outlook to a possible adjusted loss of 40 cents per share up to $1.10, down from January’s forecast, as jet-fuel costs surge. In Q1, revenue was $13.91 billion (up 10.8% year over year) and adjusted loss was $0.40 per share on a GAAP net loss of $382 million, with margins pressured by higher fuel costs and capacity discipline.
Southwest Airlines posted a Q1 profit of $227 million on $7.25 billion in revenue, boosted by ancillary fees after ending its open-seating policy. The airline guided Q2 earnings of 35–65 cents per share with flat to up to 1% capacity growth and expects unit revenues to rise about 16.5–18.5% year over year, while fuel costs remain a key headwind.