United Delivers Record 17% Revenue Growth in Q3, and Expects Record Q4 Revenue Growth, Underpinned by Accelerating Customer Investments
United Delivers Record 17% Revenue Growth in Q3, and Expects Record Q4 Revenue Growth, Underpinned by Accelerating Customer Investments
October 20, 2026
Q3 diluted earnings per share were $3.14; Q3 adjusted diluted earnings per share1 were $2.54, within guidance despite a 62% increase in fuel expense
Q3 total operating revenue of $17.9 billion rose 17% year-over-year and set an all-time record; Q3 total revenue per available seat mile up 16% year-over-year, representing best quarterly unit revenue growth since the pandemic
United expects Q4 total operating revenue growth to accelerate versus Q3 and set another record with an over 20% year-over-year increase
Starlink Wi-Fi emerges as a meaningful differentiator, installed on more than 640 aircraft. Starlink is now available on about half of all United flights, including regional flights. Availability is expected to reach 61% by the end of 2026, 87% by June 1, and available fleet-wide by the end of 2027
United's newest aircraft, the Airbus A321XLR, named "Born to Explore," debuted with domestic service in September
United's operational momentum continued, posting the lowest seat cancellation rate among the three largest U.S. airlines during the quarter. United carried a record 49.5 million customers during Q3, recording six of its 10 highest-volume travel days for the year so far
CHICAGO, Oct. 20, 2026 /PRNewswire/ -- United Airlines (UAL) today reported pre-tax earnings of $1.3 billion, with a pre-tax margin of 7.3%. Adjusted pre-tax earnings1 were $1.1 billion, with an adjusted pre-tax margin1 of 6.2%. Fuel expense was up $1.8 billion compared to third-quarter 2025 as jet fuel prices remained volatile.
"Our employees met the challenge of our ever-changing environment and our results prove the resilience of focusing on building a brand-loyal airline for customers," said United CEO Scott Kirby.
United continued to see broad-based strength across all revenue streams: compared to the third quarter of 2025, Premium revenue was up 17%, revenue from Basic Economy was up 16%, loyalty revenue was up 17% and cargo revenue was up 23%. Contracted business revenue was up 26% during the quarter compared to the third quarter of 2025, showing strong and resilient close-in demand across all industries. Economy cabin revenue grew for the third consecutive quarter, with unit revenue up 17% year-over-year.
United now offers Starlink on more than 640 aircraft, equipping approximately three more aircraft per day. United offers more daily Starlink flights now than the entire U.S. industry, further increasing United's competitive advantage. In September, more than 5.4 million United customers experienced Starlink. United expects it to be available fleet-wide by the end of 2027.
"We are winning new long-term, brand-loyal United customers because they are trying us for Starlink but staying with us for the industry-leading app, great service, on-board product and technology," Kirby said. "These advantages will persist long after the fast, low-Earth orbit Wi-Fi we are offering today becomes the industry standard. By then, United will be leading on the next innovation as we seek to sustain our lead with customers."
On September 17 United announced that travelers can now watch live professional and college football on their Starlink-enabled seatback screens, including live broadcasts from all networks that carry NFL games. Starlink is free for MileagePlus® members in every class of service.
Ongoing customer investments include the new concourse in Terminal B at Houston's George Bush Intercontinental Airport. The United ClubSM in the new, three-level concourse is the largest airline club in the Americas, with seating for 800 people and an outdoor terrace. During the quarter United also unveiled modernization plans for Washington Dulles International Airport together with the Metropolitan Washington Airports Authority and the U.S. Department of Transportation, with new and expanded airport facilities expected to support more flights.
For the third quarter of 2026, United achieved its highest third-quarter customer satisfaction rate as measured by net promoter score since 2022. Customer service scores on Starlink-equipped planes were nearly double those with other Wi-Fi service, and United achieved with the best scores in company history in a third quarter for inflight entertainment and Wi-Fi experience.
On October 16, United expanded its revolving credit facility, with available liquidity rising from $3 billion previously to $5 billion under the new facility. The favorable terms in this expanded revolving credit facility demonstrate United's continued focus on strengthening its balance sheet and achieving an investment-grade credit rating.
Third-Quarter Financial Results
Key Highlights
Customer Experience
Operations
Network
Employees, Communities and Investments
Earnings Call
UAL will hold a conference call to discuss third-quarter 2026 financial results, as well as its financial and operational outlook for the fourth quarter 2026 and beyond, on Wednesday, October 21, 2026, at 9:30 a.m. CDT/10:30 a.m. EDT. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website.
Outlook
This press release should be read in conjunction with the company's Investor Update issued in connection with this quarterly earnings announcement, which provides additional information on the company's business outlook (including certain financial and operational guidance) and is furnished with this press release to the U.S. Securities and Exchange Commission on a Current Report on Form 8-K. The Investor Update is also available at ir.united.com. Management will also discuss certain business outlook items, including certain financial targets for the fourth quarter 2026 and beyond, during the quarterly earnings conference call.
The company's business outlook is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. Please see the section entitled "Cautionary Statement Regarding Forward-Looking Statements."
About United
At United, Good Leads The Way. With hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".
Website and Social Media Information
We routinely post important news and information regarding United on our corporate website, www.united.com, and our investor relations website, ir.united.com. We use our investor relations website as a primary channel for disclosing key information to our investors, including the timing of future investor conferences and earnings calls, press releases and other information about financial performance (including financial guidance), reports filed or furnished with the U.S. Securities and Exchange Commission, information on corporate governance and details related to our annual meeting of shareholders. We may use our investor relations website as a means of disclosing material, non-public information (including financial guidance) and for complying with our disclosure obligations under Regulation FD. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted. We may also use social media channels to communicate with our investors and the public about our company and other matters, and those communications could be deemed to be material information. Our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest to our investors or could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.
Cautionary Statement Regarding Forward-Looking Statements:This press release and the related attachments and Investor Update (as well as the oral statements made with respect to information contained in this release and the attachments) contain certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to, among other things, goals, plans and projections regarding the company's financial position, results of operations, capital allocation and investments, market position, airline capacity, fleet plan strategy, fares, announced routes (which may be subject to government approval), booking trends, product development, corporate citizenship-related strategy initiatives and business strategy. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about the company's future financial results, goals, plans, commitments, strategies and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond the company's control and could cause the company's future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals," "targets," "pledge," "confident," "optimistic," "dedicated," "positioned," "on track", "path" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.
Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.
Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: execution risks associated with our strategic operating plan; changes in our fleet and network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into aircraft orders on less favorable terms, as well as any inability to accept or integrate new aircraft into our fleet as planned, including as a result of any mandatory groundings of aircraft; any failure to effectively manage, and receive anticipated benefits and returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions, or related exposures to unknown liabilities or other issues or underperformance as compared to our expectations; adverse publicity, increased regulatory scrutiny, harm to our brand, reduced travel demand, potential tort liability and operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners or another airline; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity, including as a result of alliances, joint business arrangements or other consolidations; unfavorable developments affecting our MileagePlus loyalty program our reliance on a limited number of suppliers to source a majority of our aircraft, engines and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; unfavorable economic and political conditions in the United States and globally; reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; extended interruptions or disruptions in service at major airports where we operate and space, facility and infrastructure constraints at our hubs or other airports (including as a result of government shutdowns); geopolitical conflict, terrorist attacks or security events (including the suspension of our overflying in Russian airspace as a result of the Russia-Ukraine military conflict and interruptions of our flying as a result of the military conflicts across the globe, as well as any escalation of the broader economic consequences of any conflicts beyond their current scope or a delay in any planned resumption of service to area impacted by conflict); any damage to our reputation or brand image; disruptions to our regional network and United Express flights provided by third-party regional carriers; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, these technologies or systems; increasing privacy, data security and cybersecurity obligations or a significant data breach; increased use of social media platforms by us, our employees and others; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions as well as increased employee and retiree health, pension, labor or regulatory compliance costs on our operations or financial performance; any failure to recruit, hire, develop or retain skilled personnel, including our senior management team or other key employees; the monetary and operational costs of compliance with extensive government regulation of the airline industry; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or agreement relating to these actions; costs, liabilities and risks associated with environmental regulation and climate change; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel, including as a result of the geopolitical conflicts in the Middle East and in other regions; the impacts of our significant amount of financial leverage from fixed obligations and the impacts of insufficient liquidity on our financial condition and business; failure to comply with financial and other covenants governing our debt; limitations on our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; fluctuations in the price of our common stock; the impacts of seasonality, and other factors associated with the airline industry; increases in insurance costs or inadequate insurance coverage; risks relating to our repurchase program for shares of United Airlines Holdings, Inc.'s common stock and certain warrants; and other risks and uncertainties set forth in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 and in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Quarterly Report on Form 10-Q for the period ended June 30, 2026, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
Non-GAAP Financial Information:In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the company's underlying financial performance and trends and facilitate comparisons among current, past and future periods. Non-GAAP financial measures typically have exclusions or adjustments that include one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded because the company believes they neither relate to the ordinary course of the company's business nor reflect the company's underlying business performance.
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The company does not provide a reconciliation of forward-looking measures where the company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the company's control or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Please refer to the tables accompanying this release for a description of the non-GAAP adjustments and reconciliations of the historical non-GAAP financial measures used to the most comparable GAAP financial measure and related disclosures.
-tables attached-
UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
Three Months Ended September 30,
Increase/
(Decrease)
Nine Months Ended September 30,
Increase/
(Decrease)
(In millions, except for percentage changes and per share data)
2026
2025
2026
2025
Operating revenue:
Passenger revenue
$ 16,241
$ 13,815
17.6
$ 45,507
$ 39,512
15.2
Cargo revenue
529
431
22.9
1,478
1,290
14.7
Other operating revenue
1,106
979
12.9
3,170
2,872
10.4
Total operating revenue
17,875
15,225
17.4
50,156
43,673
14.8
Operating expense:
Salaries and related costs
4,961
4,555
8.9
14,209
13,123
8.3
Aircraft fuel
4,843
2,997
61.6
12,993
8,473
53.3
Landing fees and other rent
1,046
1,002
4.4
3,050
2,836
7.6
Aircraft maintenance materials and outside repairs
806
779
3.5
2,565
2,374
8.0
Depreciation and amortization
777
730
6.4
2,295
2,191
4.8
Regional capacity purchase
725
686
5.7
2,160
2,012
7.3
Distribution expenses
632
555
13.9
1,799
1,538
16.9
Aircraft rent
116
311
172
80.4
Special charges (credits)
(215)
(73)
(749)
266
Other operating expenses
2,739
2,546
7.6
7,984
7,359
8.5
Total operating expense
16,429
13,830
18.8
46,617
40,345
15.5
Operating income
1,446
1,395
3.6
3,539
3,328
6.4
Nonoperating income (expense):
Interest expense
(359)
(331)
8.3
(1,029)
(1,048)
(1.9)
Interest income
157
142
10.1
440
473
(6.9)
Interest capitalized
5.1
169
152
11.7
Unrealized gains (losses) on investments, net
(13)
(13)
(8)
Miscellaneous, net
(12.9)
Total nonoperating expense, net
(135)
(141)
(4.1)
(331)
(346)
(4.4)
Income before income taxes
1,311
1,255
4.5
3,208
2,981
7.6
Income tax expense
282
306
(7.8)
675
672
0.5
Net income
$ 1,029
$ 949
8.5
$ 2,533
$ 2,309
9.7
Earnings per share, diluted
$ 3.14
$ 2.90
8.3
$ 7.74
$ 7.02
10.3
Diluted weighted-average shares outstanding
327.4
326.9
0.2
326.9
329.0
(0.6)
NM-Greater than 100% change or otherwise not meaningful.
UNITED AIRLINES HOLDINGS, INC.
PASSENGER REVENUE INFORMATION AND STATISTICS (UNAUDITED)
Information is as follows (in millions, except for percentage changes):
3Q 2026
Passenger Revenue
Passenger
Revenue
vs.
3Q 2025
Passenger Revenue per Available Seat Mile ("PRASM") vs. 3Q 2025
Yield vs. 3Q 2025
Available
Seat Miles ("ASMs")
vs.
3Q 2025
3Q 2026 ASMs
3Q 2026 Revenue Passenger Miles ("RPMs")
Domestic
$ 9,708
19.9 %
14.5 %
15.7 %
4.7 %
48,854
41,241
Europe
3,324
13.3 %
15.8 %
16.7 %
(2.1 %)
18,663
15,774
Middle East/India/Africa
287
(17.3 %)
30.3 %
30.9 %
(36.5 %)
1,451
1,235
Atlantic
3,611
10.1 %
16.9 %
17.8 %
(5.8 %)
20,114
17,009
Pacific
1,583
16.5 %
10.9 %
10.8 %
5.0 %
11,633
9,130
Latin America
1,339
24.2 %
30.5 %
27.4 %
(4.9 %)
7,937
6,898
International
6,533
14.3 %
17.4 %
17.4 %
(2.7 %)
39,684
33,037
Consolidated
$ 16,241
17.6 %
16.1 %
16.8 %
1.3 %
88,538
74,278
Select operating statistics are as follows:
Three Months Ended September 30,
Increase/
(Decrease)
Nine Months Ended September 30,
Increase/
(Decrease)
2026
2025
2026
2025
Passengers (thousands) (a)
49,527
48,382
2.4
140,705
135,374
3.9
RPMs (millions) (b)
74,278
73,769
0.7
210,428
203,374
3.5
ASMs (millions) (c)
88,538
87,417
1.3
253,516
246,919
2.7
Passenger load factor: (d)
Consolidated
83.9 %
84.4 %
(0.5)
pts.
83.0 %
82.4 %
0.6
pts.
Domestic
84.4 %
85.4 %
(0.9)
pts.
83.3 %
83.3 %
pts.
International
83.2 %
83.3 %
pts.
82.6 %
81.2 %
1.4
pts.
PRASM (cents)
18.34
15.80
16.1
17.95
16.00
12.2
Total revenue per available seat mile ("TRASM") (cents)
20.19
17.42
15.9
19.78
17.69
11.9
Average yield per RPM (cents) (e)
21.86
18.73
16.8
21.63
19.43
11.3
Cargo revenue ton miles (millions) (f)
936
890
5.2
2,746
2,663
3.1
Aircraft in fleet at end of period
1,575
1,486
6.0
1,575
1,486
6.0
Average stage length (miles) (g)
1,468
1,509
(2.7)
1,464
1,491
(1.8)
Employee headcount, as of September 30 (thousands)
117.9
111.9
5.4
117.9
111.9
5.4
Cost per ASM ("CASM") (cents)
18.56
15.82
17.3
18.39
16.34
12.5
CASM-ex (cents) (h)
13.09
12.15
7.8
13.36
12.53
6.6
Average aircraft fuel price per gallon
$ 3.90
$ 2.43
60.3
$ 3.65
$ 2.43
50.4
Fuel gallons consumed (millions)
1,243
1,233
0.8
3,555
3,488
1.9
(a)
The number of revenue passengers measured by each flight segment flown.
(b)
The number of scheduled miles flown by revenue passengers.
(c)
The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.
(d)
RPMs divided by ASMs.
(e)
The average passenger revenue received for each RPM flown.
(f)
The number of cargo revenue tons transported multiplied by the number of miles flown.
(g)
Average distance a flight travels weighted for size of aircraft.
(h)
CASM-ex is CASM less the impact of fuel expense, profit sharing, special charges and third-party business expenses. See NON-GAAP FINANCIAL INFORMATION for a reconciliation of CASM-ex to CASM, the most comparable GAAP measure.
UNITED AIRLINES HOLDINGS, INC.
2 NON-GAAP FINANCIAL INFORMATION
UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and non-GAAP financial measures. The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages, ratios and earnings per share amounts presented are calculated from the underlying amounts.
CASM-ex: CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel expense, and profit sharing. UAL believes that adjusting for special charges is useful to investors because those items are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, flight academy, ground handling and catering services for third parties, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel expense from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because it believes that this exclusion allows investors to better understand and analyze UAL's operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Adjusted EBITDA and Adjusted EBITDAR: We calculate Adjusted EBITDA by adding interest, taxes, depreciation and amortization to net income and adjusting for special charges, nonoperating unrealized (gains) losses on investments, net and nonoperating debt extinguishment and modification fees. UAL believes that adjusting for these items is useful to investors because they are not indicative of UAL's ongoing performance. Adjusted EBITDA is further adjusted by the fixed portion of operating lease expense to calculate Adjusted EBITDAR to provide investors with enhanced comparability to our peers and better reflect our performance.
Adjusted Capital Expenditures: UAL believes that adjusting capital expenditures for assets acquired through the issuance or modification of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures.
Free Cash Flow: We define free cash flow as the sum of net cash from operating activities and net cash from investing activities, adjusted for the net change in short-term investments and the net change in restricted cash. We believe adjusting for short-term investments and restricted cash activity provides investors a better understanding of the company's free cash flow generated by our core operations. We also believe our methodology provides investors with enhanced comparability to our peers and better reflects our performance.
Adjusted Total Debt and Adjusted Net Debt: Adjusted total debt is a non-GAAP financial measure that includes current and long-term debt, finance lease obligations and other financial liabilities, current and noncurrent operating lease obligations and noncurrent pension and postretirement obligations. Adjusted net debt is adjusted total debt minus cash, cash equivalents and short-term investments. UAL provides adjusted total debt and adjusted net debt because we believe these measures provide useful supplemental information for assessing the company's debt and debt-like obligation profile.
Net Leverage: Net leverage is a non-GAAP financial measure that is equal to adjusted net debt divided by trailing twelve month Adjusted EBITDAR. UAL provides net leverage because we believe it provides useful supplemental information for assessing the company's debt level. See the above descriptions of Adjusted Net Debt and Adjusted EBITDAR.
Three Months Ended September 30,
Increase/
(Decrease)
Nine Months Ended September 30,
Increase/
(Decrease)
CASM-ex (in cents, except for percentage changes)
2026
2025
2026
2025
CASM (GAAP)
18.56
15.82
17.3
18.39
16.34
12.5
Fuel expense
5.47
3.43
59.5
5.13
3.43
49.3
Profit sharing
0.17
0.26
(36.7)
0.12
0.19
(37.2)
Third-party business expenses
0.07
0.07
10.6
0.08
0.08
(3.1)
Special charges (credits)
(0.24)
(0.08)
(0.30)
0.11
CASM-ex (Non-GAAP)
13.09
12.15
7.8
13.36
12.53
6.6
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
Three Months Ended September 30,
Nine Months Ended September 30,
Twelve Months Ended September 30,
Adjusted EBITDA and Adjusted EBITDAR (in millions)
2026
2025
2026
2025
2026
2025
Net income (GAAP)
$ 1,029
$ 949
$ 2,533
$ 2,309
$ 3,577
$ 3,295
Adjusted for:
Depreciation and amortization
777
730
2,295
2,191
3,044
2,950
Interest expense, net of capitalized interest and interest income
146
136
419
424
552
569
Income tax expense
282
306
675
672
956
994
Special charges (credits)
(215)
(73)
(749)
266
(757)
335
Nonoperating unrealized (gains) losses on investments, net
(13)
(26)
Nonoperating debt extinguishment and modification fees
Adjusted EBITDA (non-GAAP)
$ 2,032
$ 2,081
$ 5,165
$ 5,890
$ 7,350
$ 8,229
Adjusted EBITDA margin (non-GAAP)
11.4 %
13.7 %
10.3 %
13.5 %
11.2 %
14.1 %
Adjusted EBITDA (non-GAAP)
$ 2,032
$ 2,081
$ 5,165
$ 5,890
$ 7,350
$ 8,229
Fixed portion of operating lease expense
275
221
790
654
1,028
866
Adjusted EBITDAR (non-GAAP)
$ 2,308
$ 2,302
$ 5,955
$ 6,545
$ 8,379
$ 9,095
Three Months Ended September 30,
Nine Months Ended September 30,
Adjusted Capital Expenditures (in millions)
2026
2025
2026
2025
Capital expenditures, net of flight equipment purchase deposit returns (GAAP)
$ 2,139
$ 1,464
$ 5,154
$ 3,984
Property and equipment acquired through the issuance or modification of debt, finance leases and other financial liabilities
140
(52)
Operating leases converted to finance leases
417
417
Adjusted capital expenditures (Non-GAAP)
$ 2,193
$ 1,881
$ 5,360
$ 4,349
Three Months Ended September 30,
Nine Months Ended September 30,
Twelve Months Ended September 30,
Free Cash Flow (in millions)
2026
2025
2026
2025
2026
2025
Net cash provided by operating activities (GAAP)
$ 465
$ 1,218
$ 6,874
$ 7,145
$ 8,160
$ 9,370
Net cash used in investing activities (GAAP)
(3,839)
(1,743)
(7,192)
(4,785)
(8,758)
(6,500)
Adjusted for:
Net change in short-term investments
1,534
337
1,707
893
1,405
1,247
Net change in restricted cash
(4)
(7)
(5)
Free cash flow (Non-GAAP)
$ (1,843)
$ (153)
$ 1,382
$ 3,289
$ 802
$ 4,191
September 30,
Increase/
(Decrease)
Adjusted Total Debt, Adjusted Net Debt and Net Leverage (in millions, except ratios)
2026
2025
Debt, finance lease obligations and other financial liabilities - current and noncurrent (GAAP)
$ 26,398
$ 25,428
$ 970
Operating lease obligations - current and noncurrent
7,897
5,894
2,003
Pension and postretirement liabilities - noncurrent
825
974
(148)
Adjusted total debt (Non-GAAP)
$ 35,120
$ 32,296
2,824
Less: Cash and cash equivalents
$ 6,648
$ 6,730
(81)
Short-term investments
8,005
6,599
1,405
Adjusted net debt (Non-GAAP)
$ 20,467
$ 18,967
1,500
Net leverage (Non-GAAP)
2.4
2.1
0.4
pts.
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
Three Months Ended September 30,
Increase/
(Decrease)
Nine Months Ended September 30,
Increase/
(Decrease)
(in millions, except for percentage changes and per share data)
2026
2025
2026
2025
Operating expenses (GAAP)
$ 16,429
$ 13,830
18.8
$ 46,617
$ 40,345
15.5
Special charges (credits)
(215)
(73)
(749)
266
Operating expenses, excluding special charges
16,645
13,903
19.7
47,366
40,079
18.2
Adjusted to exclude:
Fuel expense
4,843
2,997
61.6
12,993
8,473
53.3
Profit sharing
146
228
(35.9)
296
459
(35.6)
Third-party business expenses
12.0
199
200
(0.5)
Adjusted operating expenses (Non-GAAP)
$ 11,589
$ 10,619
9.1
$ 33,878
$ 30,947
9.5
Operating income (GAAP)
$ 1,446
$ 1,395
3.6
$ 3,539
$ 3,328
6.4
Special charges (credits)
(215)
(73)
(749)
266
Adjusted operating income (Non-GAAP)
$ 1,231
$ 1,322
(6.9)
$ 2,790
$ 3,594
(22.4)
Operating margin
8.1 %
9.2 %
(1.1)
pts.
7.1 %
7.6 %
(0.6)
pts.
Adjusted operating margin (Non-GAAP)
6.9 %
8.7 %
(1.8)
pts.
5.6 %
8.2 %
(2.7)
pts.
Pre-tax income (GAAP)
$ 1,311
$ 1,255
4.5
$ 3,208
$ 2,981
7.6
Adjusted to exclude:
Special charges (credits)
(215)
(73)
(749)
266
Unrealized (gains) losses on investments, net
(13)
Debt extinguishment and modification fees
Adjusted pre-tax income (Non-GAAP)
$ 1,109
$ 1,215
(8.7)
$ 2,451
$ 3,276
(25.2)
Pre-tax margin (GAAP)
7.3 %
8.2 %
(0.9)
pts.
6.4 %
6.8 %
(0.4)
pts.
Adjusted pre-tax margin (Non-GAAP)
6.2 %
8.0 %
(1.8)
pts.
4.9 %
7.5 %
(2.6)
pts.
Net income (GAAP)
$ 1,029
$ 949
8.5
$ 2,533
$ 2,309
9.7
Adjusted to exclude:
Special charges (credits)
(215)
(73)
(749)
266
Unrealized (gains) losses on investments, net
(13)
Debt extinguishment and modification fees
Income tax expense (benefit) on adjustments, net
(127)
Adjusted net income (Non-GAAP)
$ 833
$ 909
(8.4)
$ 1,871
$ 2,477
(24.5)
Diluted earnings per share (GAAP)
$ 3.14
$ 2.90
8.3
$ 7.74
$ 7.02
10.3
Adjusted to exclude:
Special charges (credits)
(0.66)
(0.22)
(2.29)
0.81
Unrealized (gains) losses on investments, net
0.04
0.04
(0.04)
0.03
Debt extinguishment and modification fees
0.06
0.02
0.06
Income tax expense (benefit) on adjustments, net
0.02
0.29
(0.39)
Adjusted diluted earnings per share (Non-GAAP)
$ 2.54
$ 2.78
(8.6)
$ 5.72
$ 7.53
(24.0)
UNITED AIRLINES HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
September 30, 2026 (UNAUDITED)
December 31, 2025
ASSETS
Cash and cash equivalents
$ 6,648
$ 5,942
Short-term investments
8,005
6,298
Receivables, net
2,636
2,391
Aircraft fuel, spare parts and supplies, net
1,954
1,556
Prepaid expenses and other
746
671
Total current assets
19,988
16,857
Operating property and equipment, net
49,368
46,121
Operating lease right-of-use assets
6,992
4,958
Goodwill
4,527
4,527
Intangible assets, net
2,641
2,655
Investments in affiliates and other, net
1,604
1,330
Total noncurrent assets
65,132
59,591
Total assets
$ 85,120
$ 76,448
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$ 5,403
$ 4,567
Accrued salaries and benefits
3,007
3,900
Advance ticket sales
10,672
8,131
Frequent flyer deferred revenue
4,084
3,721
Current maturities of long-term debt, finance leases, and other financial liabilities
1,848
4,426
Current maturities of operating leases
934
631
Other
691
757
Total current liabilities
26,639
26,133
Long-term debt, finance leases, and other financial liabilities
24,550
20,562
Long-term obligations under operating leases
6,962
5,417
Frequent flyer deferred revenue
3,881
4,056
Pension and postretirement benefit liability
825
1,058
Deferred income taxes
3,093
2,463
Other
1,415
1,478
Total noncurrent liabilities
40,727
35,033
Total stockholders' equity
17,754
15,282
Total liabilities and stockholders' equity
$ 85,120
$ 76,448
UNITED AIRLINES HOLDINGS, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(in millions)
Nine Months Ended September 30,
2026
2025
Operating Activities:
Net cash provided by operating activities
$ 6,874
$ 7,145
Investing Activities:
Capital expenditures, net of flight equipment purchase deposit returns
(5,154)
(3,984)
Purchases of short-term and other investments
(7,583)
(6,454)
Proceeds from sale of short-term and other investments
5,779
5,654
Proceeds from sale of property and equipment
Other, net
(289)
(64)
Net cash used in investing activities
(7,192)
(4,785)
Financing Activities:
Proceeds from issuance of debt and other financial liabilities, net of discounts and fees
6,698
485
Payments of long-term debt, finance leases and other financial liabilities
(5,541)
(4,196)
Repurchases of common stock
(27)
(610)
Other, net
(98)
(114)
Net cash provided by (used in) financing activities
1,031
(4,436)
Net increase (decrease) in cash, cash equivalents and restricted cash
713
(2,075)
Cash, cash equivalents and restricted cash at beginning of the period
6,081
8,946
Cash, cash equivalents and restricted cash at end of the period (a)
$ 6,794
$ 6,871
Investing and Financing Activities Not Affecting Cash:
Right-of-use assets acquired or modified through operating leases
$ 2,488
$ 1,382
Property and equipment acquired through the issuance or modification of debt, finance leases and other financial liabilities
140
(52)
Operating leases converted to finance leases
417
Investment interests received in exchange for loans, goods and services
(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets:
Cash and cash equivalents
$ 6,648
$ 6,730
Restricted cash in Investments in affiliates and other, net
146
141
Total cash, cash equivalents and restricted cash
$ 6,794
$ 6,871
UNITED AIRLINES HOLDINGS, INC.
NOTES (UNAUDITED)
Special charges (credits) and unrealized (gains) losses on investments, net include the following:
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2026
2025
2026
2025
Operating:
Labor contract ratification bonuses
$ (2)
$ —
$ 182
$ 561
(Gains) losses on sale of assets and other special charges
(213)
(73)
(931)
(295)
Total operating special charges (credits)
(215)
(73)
(749)
266
Nonoperating:
Nonoperating unrealized (gains) losses on investments, net
(13)
Nonoperating debt extinguishment and modification fees
Total nonoperating special charges and unrealized (gains) losses on investments, net
(8)
Total operating and nonoperating special charges (credits) and unrealized (gains) losses on investments, net
(202)
(40)
(757)
295
Income tax expense (benefit), net of valuation allowance
(127)
Total operating and nonoperating special charges (credits) and unrealized (gains) losses on investments, net of income taxes
$ (197)
$ (40)
$ (662)
$ 168
During the nine months ended September 30, 2026, the company recorded $182 million of expense associated with the recently ratified agreements with the company's flight attendants represented by the Association of Flight Attendants ("AFA") and the company's fleet technical instructors, storekeepers, maintenance instructors and security officers represented by the International Association of Machinists and Aerospace Workers. During the nine months ended September 30, 2025, the company recorded a $561 million special charge in connection with the then-existing tentative agreement with its flight attendants represented by the AFA.
During the three and nine months ended September 30, 2026, the company recorded $213 million and $931 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $294 million and $1.1 billion, respectively, of gains on various aircraft sale-leaseback transactions. During the three and nine months ended September 30, 2025, the company recorded $73 million and $295 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $75 million and $336 million, respectively, of gains on various aircraft sale-leaseback transactions.
The company's effective tax rates were as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Effective tax rate
21.5 %
24.4 %
21.0 %
22.5 %
The provision for income taxes is based on the estimated annual effective tax rate, which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items. The decrease in the effective tax rates in the three and nine months ended September 30, 2026, as compared to the same period in 2025, was primarily due to a release of valuation allowance related to realized capital gains.
1 For additional information about the non-GAAP financial measures used in this press release, see "Non-GAAP Financial Information" below.
2 Includes cash, cash equivalents, short-term investments and undrawn credit facilities.
SOURCE United Airlines
Joint statement — also mentions: Airbus