United Airlines shares fall as Newark snags weigh on profit forecast

United Airlines shares fell 3% in premarket trading on Thursday, after the U.S. carrier flagged a hit to third-quarter earnings from operational snags at Newark airport.

The Newark airport, where nearly 70% of the flights are operated by the Chicago-based airline, has faced disruptions due to equipment failures, ongoing runway construction and persistent air traffic control staffing shortages.

United anticipated a 0.9 percentage point hit in the current quarter, following a 1.2 percentage point impact in the second, from operational constraints at the airport, among the busiest hubs in the U.S.

The carrier, however, projected overall travel demand to rise by 6 percentage points in the third quarter, along with a strong double-digit boost in business travel bookings.

In the previous quarter, budget cuts and trade tensions under President Donald Trump had put the U.S. aviation industry on alert, prompting most carriers to withdraw their 2025 profit forecasts and brace for a broader travel slowdown.

"The negative share price reaction in pre-market trading implies that investors want to see more evidence that life is getting better before they call the bottom in the sector," said Dan Coatsworth, investment analyst at AJ Bell.

Despite signs of stabilization in demand, airlines have yet to see a meaningful rebound in pricing power.

United's average revenue per passenger, a proxy for pricing power, declined across all regions in the second quarter, with the steepest drop in the U.S. domestic market.

The company expects an adjusted profit in the range of $2.25 a share to $2.75 per share in the quarter ending September. The midpoint of the forecast is $2.50 per share, compared with analysts' average estimate of $2.60, according to LSEG data.