The Traderszone Network

Published in TZ Latest News 8 May, 2015 by The TZ Newswire Staff

United Airlines sees second-quarter fuel costs higher than expected

The Chicago-based airline estimated it will pay on average $2.17 to $2.22 per gallon of fuel for the period, including the impact of cash-settled hedge losses. This revises its guidance from last month that estimated United would pay between $2.10 and $2.15 per gallon for the quarter. The price of benchmark U.S. crude oil is up almost 3 percent since United gave its initial guidance on April 23. Still, U.S.-based airlines are poised to save hundreds of millions of dollars more on fuel over last year since the U.S. benchmark is down more than 40 percent since June.