United Faces Higher Costs – and What Else We Learned on the Earnings Call

United Airlines executives outlined third-quarter earnings results in an October 18 conference call. Here are six of the most interesting takeaways. 

1. Cost Pressures Are Weighing on Profit Outlook  

The price of fuel continues to be volatile, Chief Financial Officer Michael Leskinen said on the conference call. The airline expects an average fuel price of about $3.28 in the fourth quarter, up from $2.95 in the third quarter. 

Higher-than-expected labor and maintenance costs are affecting United’s fourth-quarter outlook. Maintenance costs — especially related to an increased need for spare parts — are elevated as the industry grapples with supply chain issues and aircraft delays.

“Looking ahead to 2024, we feel good about the core fundamentals of our expenses,” Leskinen said. “However, we are facing sizable headwinds with labor and expectation of a new flight attendant agreement, and continued higher maintenance expenses.”

2. Focus On Basic Economy

United executives focused on the