United Airlines Holdings has outperformed the industrial sector over the past year, with its stock climbing 50.9% compared to the State Street Industrial Select Sector SPDR ETF's 26.3% gain. However, shares fell 5.6% after the company issued weaker-than-expected guidance on April 21, forecasting second-quarter adjusted earnings per share of $1 to $2 and full-year EPS of $7 to $11, driven by a sharp rise in fuel costs linked to the Iran conflict. United expects to pay about $4.30 per gallon for jet fuel in the second quarter and recover only 40% to 50% of the fuel-price increase through fares. Analysts remain strongly optimistic, with a consensus rating of Strong Buy and a mean price target of $132.22, implying an 11.6% premium to current levels.
United Airlines Holdings IncUnited issued weaker guidance due to sharp rise in fuel costs from Iran conflict.
Delta Air Lines IncRising fuel costs due to Iran conflict affect the entire airline industry, including Delta.