Worldwide Media Relations
News Release United Airlines Worldwide Media Relations 872.825.8640 media.relations@united.com
United Delivers Record 17% Revenue Growth in Q3, and Expects Record Q4 Revenue Growth, Underpinned by Accelerating Customer Investments
Q3 diluted earnings per share were $3.14; Q3 adjusted diluted earnings per share 1 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
– United Airlines (UAL) today reported pre-tax earnings of $1.3 billion, with a pre-tax margin of 7.3%. Adjusted pre-tax earnings 1 were $1.1 billion, with an adjusted pre-tax margin 1 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
1 For additional information about the non-GAAP financial measures used in this press release, see "Non-GAAP Financial Information" below. 1
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 Club SM 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. 2 United Airlines Reports Third-Quarter 2026 Results
• Total operating revenue of $17.9 billion, up 17.4% compared to third-quarter 2025.
• Pre-tax earnings of $1.3 billion, with a pre-tax margin of 7.3%; adjusted pre- tax earnings 1 of $1.1 billion, with an adjusted pre-tax margin 1 of 6.2%.
• Diluted earnings per share of $3.14; adjusted diluted earnings per share 1 of $2.54.
• Total debt, finance lease obligations and other financial liabilities of $26.4 billion at quarter end.
• Announced the largest-ever international network expansion with service to 10 new destinations planned to start in summer 2027, including Catania, Italy; Ibiza, Spain; Ljubljana, Slovenia; Luxembourg; Marseille, France; Okinawa, Japan; Olbia, Italy; Terceira, Portugal; Toulouse, France; and Valencia, Spain. All new routes are subject to government approval.
• Operated the largest domestic schedule in company history, serving 241 airports across the U.S. and Canada, the most of any carrier in the quarter.
• In an agreement with DISH, launched live TV streaming on aircraft with Starlink-enabled seatback screens, unlocking professional and college football viewership in the air.
• Made aviation and sports broadcast history in collaboration with Disney Advertising, with an ESPN Football Fantasy Draft livestream from a flight, powered by Starlink.
• In August, United introduced 10 new, exclusive meals in United Polaris® cabins in collaboration with Chef's Table.
• Over 87% of customers used digital check-in — with the increase driven by international customers — thanks to continued enhancements such as Japanese language translations within the app.
• Awarded by Tom's Guide for "Best of Travel" for the implementation of Starlink, which it called a "masterclass in passenger experience."
2Includes cash, cash equivalents, short-term investments and undrawn credit facilities.
• Expanded digital travel notifications in 11 more international markets, bringing real-time trip communications to customers in 33 total markets in their preferred channels and languages.
• Worked with Aperture Cellars to blend a wine at 35,000 feet, expected to be featured on select flights in United Polaris in 2028.
• Launched Flight Finder, giving customers whose travel was disrupted more control over rebooking options and a faster path to recovery.
• Averaged approximately 538,000 daily customers during the quarter, recording six of its 10 highest-volume travel days for the year so far. United carried a record 49.5 million revenue customers during the quarter.
• Ranked among the most reliable U.S. carriers this summer, with the lowest seat cancellation rate among the three largest U.S. airlines as measured by available seat miles.
• Posted the best July on-time departure rate among the seven largest U.S. carriers despite historic weather disruptions. July was United's busiest month ever, with 18.4 million customers carried.
• Completed a four-year expansion of the Denver Flight Training Center, adding 40 flight simulators for a total of 86, and enabling training for 860 pilots daily.
• Transported more than 352 million pounds of cargo during the quarter, for the largest third quarter in company history.
• Announced additional summer 2027 service on four international routes: Los Angeles-Osaka, Washington Dulles-Milan, Denver-Paris, and San Francisco-Tel Aviv.
• Launched nonstop service from Newark to Seoul and four new domestic routes from Newark: Bentonville, Arkansas; Charlottesville, Virginia; Knoxville, Tennessee; and Omaha, Nebraska.
• Expanded 787-9 Elevated service from San Francisco to Zurich and Seoul, joining Singapore and London routes that were introduced in the second quarter of 2026. These premium configured aircraft feature 99 total premium seats including 8 United Polaris Studio℠ suites and 56 United Polaris seats.
• Launched the "Wishes Snackbox" with Make-A-Wish, featuring original art and hand-selected snacks from Wish kids. United will donate $1 for each box sold, up to $250,000.
• Kicked off United's Season of Service, with 3,100 employees volunteering 9,000 hours at nonprofits worldwide and packing nearly 471,000 meals to commemorate the 25th anniversary of 9/11. 4 United Airlines Reports Third-Quarter 2026 Results
• Contributed more than 40 million donated MileagePlus miles, including 18 million for Airlink and World Central Kitchen, to support 20 global response and recovery efforts. With partners, transported more than 200 responders and 30,000 pounds of cargo, supported 43 NGOs, reached more than 722,000 people and saved the NGO community more than $410,000.
• United and its employees raised $1.3 million for Special Olympics through the annual Plane Pull competition.
• Invested in the future aviation workforce through United's inaugural Discovery Day, in collaboration with the Boys & Girls Clubs of Chicago, and annual Girls in Aviation Day. The two events connected 860 young people at 27 events across six hubs, 20 line stations and United headquarters with hands-on experiences in technology, customer experience and corporate functions. 5 United Airlines Reports Third-Quarter 2026 Results
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.
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."
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".
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.
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 6 United Airlines Reports Third-Quarter 2026 Results
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.
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 7 United Airlines Reports Third-Quarter 2026 Results
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-
(c) The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.
(f) The number of cargo revenue tons transported multiplied by the number of miles flown.
(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. 10 United Airlines Reports Third-Quarter 2026 Results
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 Nine Adjusted Months Months Capital Ended Ended Expendi… September September million… 2026 30, 2025 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Capital expendi… net of flight equipme… $ 2,139 $ 1,464 $ 5,154 $ 3,984 purchase deposit returns (GAAP) Property and equipme… acquired through the issuance or 54 — 140 -52 modific… of debt, finance leases and other financi… liabili… Operati… leases convert… — 417 66 417 to finance leases Adjusted capital $ 2,193 $ 1,881 $ 5,360 $ 4,349 expendi… (Non-GA…
Adjusted Total Debt, Adjusted Net Debt and Net Leverage(in millions, except Increase/ ratios) 2026 September 30, 2025 (Decrease) ────────────────────────────────────────────────────────────────────────────── Debt, finance lease obligations and other $ 26,398 $ 25,428 $ 970 financial liabilities - current and noncurrent (GAAP) Operating lease obligations 7,897 5,894 2,003 - current and noncurrent Pension and postretirem… liabilities 825 974 -148 - noncurrent Adjusted total debt $ 35,120 $ 32,296 2,824 (Non-GAAP) Less: Cash and cash $ 6,648 $ 6,730 -81 equivalents Short-term 8,005 6,599 1,405 investments Adjusted net debt $ 20,467 $ 18,967 1,500 (Non-GAAP) Net leverage 2.4 2.1 0.4 pts. (Non-GAAP)
September 30, 2026 December 31, (in millions) (UNAUDITED) 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Cash and cash $ 6,648 $ 5,942 equivalents Short-term 8,005 6,298 investments Receivables, net 2,636 2,391 Aircraft fuel, spare parts and 1,954 1,556 supplies, net Prepaid expenses 746 671 and other Total current 19,988 16,857 assets Operating property and 49,368 46,121 equipment, net Operating lease right-of-use 6,992 4,958 assets Goodwill 4,527 4,527 Intangible 2,641 2,655 assets, net Investments in affiliates and 1,604 1,330 other, net Total noncurrent 65,132 59,591 assets Total assets $ 85,120 $ 76,448 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 5,403 $ 4,567 Accrued salaries 3,007 3,900 and benefits Advance ticket 10,672 8,131 sales Frequent flyer 4,084 3,721 deferred revenue Current maturities of long-term debt, finance leases, 1,848 4,426 and other financial liabilities Current maturities of 934 631 operating leases Other 691 757 Total current 26,639 26,133 liabilities Long-term debt, finance leases, and 24,550 20,562 other financial liabilities Long-term obligations 6,962 5,417 under operating leases Frequent flyer 3,881 4,056 deferred revenue Pension and postretirement 825 1,058 benefit liability Deferred income 3,093 2,463 taxes Other 1,415 1,478 Total noncurrent 40,727 35,033 liabilities Total stockholders' 17,754 15,282 equity Total liabilities and $ 85,120 $ 76,448 stockholders' equity
Nine Months Ended (in millions) September 30, Operating Activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by operating $ 6,874 $ 7,145 activities Investing Activities: Capital expenditures, net of flight -5,154 -3,984 equipment purchase deposit returns Purchases of short-term and other -7,583 -6,454 investments Proceeds from sale of short-term and 5,779 5,654 other investments Proceeds from sale of property and 54 63 equipment Other, net -289 -64 Net cash used in -7,192 -4,785 investing activities Financing Activities: Proceeds from issuance of debt and other financial liabilities, 6,698 485 net of discounts and fees Payments of long-term debt, finance -5,541 -4,196 leases and other financial liabilities Repurchases of common -27 -610 stock Other, net -98 -114 Net cash provided by (used in) financing 1,031 -4,436 activities Net increase (decrease) in cash, cash 713 -2,075 equivalents and restricted cash Cash, cash equivalents and restricted 6,081 8,946 cash at beginning of the period Cash, cash equivalents and restricted $ 6,794 $ 6,871 cash at end of the period (a) Investing and Financing Activities Not Affecting Cash: Right-of-use assets acquired or modified $ 2,488 $ 1,382 through operating leases Property and equipment acquired through the issuance or modification of debt, 140 -52 finance leases and other financial liabilities Operating leases converted to finance 66 417 leases Investment interests received in 60 16 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 146 141 affiliates and other, net Total cash, cash equivalents and $ 6,794 $ 6,871 restricted cash
NOTES (UNAUDITED) Special charges (credits) and unrealized (gains) losses on investments, net include the following:
Three Nine Months Months Ended Ended (in September September millions) 30, 30, Operatin… 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Labor contract $ -2 $ — $ 182 $ 561 ratifica… bonuses (Gains) losses on sale of assets -213 -73 -931 -295 and other special charges Total operating special -215 -73 -749 266 charges (credits) Nonopera… Nonopera… unrealiz… (gains) losses 13 13 -13 8 on investme… net Nonopera… debt extingui… — 20 6 20 and modifica… fees Total nonopera… special charges and 13 33 -8 28 unrealiz… (gains) losses on investme… net Total operating and nonopera… special charges (credits) -202 -40 -757 295 and unrealiz… (gains) losses on investme… net Income tax expense (benefit… 6 — 95 -127 net of valuation allowance Total operating and nonopera… special charges (credits) and $ -197 $ -40 $ -662 $ 168 unrealiz… (gains) losses on investme… net of income taxes
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 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. # # #
Full text with the tables
Exhibit 99.1
News Release
United Airlines
Worldwide Media Relations
872.825.8640
media.relations@united.com
United Delivers Record 17% Revenue Growth in Q3,
and Expects Record Q4 Revenue Growth, Underpinned
by Accelerating Customer Investments
Q3 diluted earnings per share were $3.14; Q3 adjusted diluted earnings per share
1 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, October 20, 2026
– United Airlines (UAL) today reported pre-tax earnings of $1.3 billion, with a
pre-tax margin of 7.3%. Adjusted pre-tax earnings 1 were $1.1 billion, with an
adjusted pre-tax margin 1 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
1 For additional information about the non-GAAP financial measures used in this
press release, see "Non-GAAP Financial Information" below.
1
United Airlines Reports Third-Quarter 2026 Results
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 Club SM 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.
2
United Airlines Reports Third-Quarter 2026 Results
Third-Quarter Financial Results
• Capacity up 1.3% compared to third-quarter 2025.
• Total operating revenue of $17.9 billion, up 17.4% compared to third-quarter
2025.
• TRASM up 15.9% compared to third-quarter 2025.
• CASM up 17.3%, and CASM-ex 1 up 7.8%, compared to third-quarter 2025.
• Pre-tax earnings of $1.3 billion, with a pre-tax margin of 7.3%; adjusted pre-
tax earnings 1 of $1.1 billion, with an adjusted pre-tax margin 1 of 6.2%.
• Net income of $1.0 billion; adjusted net income 1 of $833 million.
• Diluted earnings per share of $3.14; adjusted diluted earnings per share 1 of
$2.54.
• Average fuel price per gallon of $3.90.
• Ending available liquidity 2 of $17.7 billion.
• Total debt, finance lease obligations and other financial liabilities of $26.4
billion at quarter end.
• Trailing twelve months net leverage 1 of 2.4x.
Key Highlights
• Announced the largest-ever international network expansion with service to 10
new destinations planned to start in summer 2027, including Catania, Italy;
Ibiza, Spain; Ljubljana, Slovenia; Luxembourg; Marseille, France; Okinawa,
Japan; Olbia, Italy; Terceira, Portugal; Toulouse, France; and Valencia, Spain.
All new routes are subject to government approval.
• Operated the largest domestic schedule in company history, serving 241
airports across the U.S. and Canada, the most of any carrier in the quarter.
• In an agreement with DISH, launched live TV streaming on aircraft with
Starlink-enabled seatback screens, unlocking professional and college football
viewership in the air.
• Made aviation and sports broadcast history in collaboration with Disney
Advertising, with an ESPN Football Fantasy Draft livestream from a flight,
powered by Starlink.
Customer Experience
• In August, United introduced 10 new, exclusive meals in United Polaris® cabins
in collaboration with Chef's Table.
• Over 87% of customers used digital check-in — with the increase driven by
international customers — thanks to continued enhancements such as Japanese
language translations within the app.
• Awarded by Tom's Guide for "Best of Travel" for the implementation of
Starlink, which it called a "masterclass in passenger experience."
2Includes cash, cash equivalents, short-term
investments and undrawn credit facilities.
3
United Airlines Reports Third-Quarter 2026 Results
• Expanded digital travel notifications in 11 more international markets,
bringing real-time trip communications to customers in 33 total markets in their
preferred channels and languages.
• Worked with Aperture Cellars to blend a wine at 35,000 feet, expected to be
featured on select flights in United Polaris in 2028.
• Launched Flight Finder, giving customers whose travel was disrupted more
control over rebooking options and a faster path to recovery.
Operations
• Averaged approximately 538,000 daily customers during the quarter, recording
six of its 10 highest-volume travel days for the year so far. United carried a
record 49.5 million revenue customers during the quarter.
• Ranked among the most reliable U.S. carriers this summer, with the lowest seat
cancellation rate among the three largest U.S. airlines as measured by available
seat miles.
• Posted the best July on-time departure rate among the seven largest U.S.
carriers despite historic weather disruptions. July was United's busiest month
ever, with 18.4 million customers carried.
• Completed a four-year expansion of the Denver Flight Training Center, adding
40 flight simulators for a total of 86, and enabling training for 860 pilots
daily.
• Transported more than 352 million pounds of cargo during the quarter, for the
largest third quarter in company history.
Network
• Announced additional summer 2027 service on four international routes: Los
Angeles-Osaka, Washington Dulles-Milan, Denver-Paris, and San Francisco-Tel
Aviv.
• Resumed service from Newark to Tel Aviv in early September.
• Launched nonstop service from Newark to Seoul and four new domestic routes
from Newark: Bentonville, Arkansas; Charlottesville, Virginia; Knoxville,
Tennessee; and Omaha, Nebraska.
• Expanded 787-9 Elevated service from San Francisco to Zurich and Seoul,
joining Singapore and London routes that were introduced in the second quarter
of 2026. These premium configured aircraft feature 99 total premium seats
including 8 United Polaris Studio℠ suites and 56 United Polaris seats.
Employees, Communities and Investments
• Launched the "Wishes Snackbox" with Make-A-Wish, featuring original art and
hand-selected snacks from Wish kids. United will donate $1 for each box sold, up
to $250,000.
• Kicked off United's Season of Service, with 3,100 employees volunteering 9,000
hours at nonprofits worldwide and packing nearly 471,000 meals to commemorate
the 25th anniversary of 9/11.
4
United Airlines Reports Third-Quarter 2026 Results
• Contributed more than 40 million donated MileagePlus miles, including 18
million for Airlink and World Central Kitchen, to support 20 global response and
recovery efforts. With partners, transported more than 200 responders and 30,000
pounds of cargo, supported 43 NGOs, reached more than 722,000 people and saved
the NGO community more than $410,000.
• United and its employees raised $1.3 million for Special Olympics through the
annual Plane Pull competition.
• Invested in the future aviation workforce through United's inaugural Discovery
Day, in collaboration with the Boys & Girls Clubs of Chicago, and annual Girls
in Aviation Day. The two events connected 860 young people at 27 events across
six hubs, 20 line stations and United headquarters with hands-on experiences in
technology, customer experience and corporate functions.
5
United Airlines Reports Third-Quarter 2026 Results
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
6
United Airlines Reports Third-Quarter 2026 Results
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
7
United Airlines Reports Third-Quarter 2026 Results
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-
8
United Airlines Reports Third-Quarter 2026 Results
UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
…
…
…
…
…
…
… T…
… M… …
… E… …
… S… % … %
… 3… I… … …
… 2… 2… (… 2… … … …
──────────────────────────────────────────────────────────────────────────────
… $ 1… $ 1… 1… $ 4… $ 3… 1…
…
… 5… 4… 2… 1… 1… 1…
…
…
… 1… 9… 1… 3… 2… 1…
…
…
… 1… 1… 1… 5… 4… 1…
…
…
…
…
… 4… 4… 8… 1… 1… 8…
…
…
… 4… 2… 6… 1… 8… 5…
…
…
…
… 1… 1… 4… 3… 2… 7…
…
…
…
…
… 8… 7… 3… 2… 2… 8…
…
…
…
…
… 7… 7… 6… 2… 2… 4…
…
…
… 7… 6… 5… 2… 2… 7…
…
… 6… 5… 1… 1… 1… 1…
…
… 1… 54 NM 3… 1… 8…
…
…
… -… -… NM -… 2… …
…
…
… 2… 2… 7… 7… 7… 8…
…
…
… 1… 1… 1… 4… 4… 1…
…
… 1… 1… 3… 3… 3… 6…
…
…
…
…
… -… -… 8… -… -… -…
…
… 1… 1… 1… 4… 4… -…
…
… 56 53 5… 1… 1… 1…
…
…
…
… -… -… NM 13 -8 …
…
…
…
… 24 9 NM 74 86 -…
…
…
… -… -… -… -… -… -…
…
…
…
… 1… 1… 4… 3… 2… 7…
…
…
…
… 2… 3… -… 6… 6… 0…
…
… $ 1… $ 9… 8… $ 2… $ 2… 9…
…
…
… $ 3… $ 2… 8… $ 7… $ 7… 1…
…
…
…
… 3… 3… 0… 3… 3… -…
…
…
…
…
…
…
…
…
…
…
`
9
United Airlines Reports Third-Quarter 2026 Results
UNITED AIRLINES HOLDINGS, INC.
PASSENGER REVENUE INFORMATION AND STATISTICS (UNAUDITED)
Information is as follows (in millions, except for percentage changes):
Pas…
Rev…
per
Ava… Ava…
Seat Seat 3Q
Pas… Mile Mil… 2026
3Q Rev… ("P… Yie… ("A… Rev…
2026 vs. vs. vs. vs. 3Q Pas…
Pas… 3Q 3Q 3Q 3Q 2026 Mil…
Rev… 2025 2025 2025 2025 ASMs ("R…
──────────────────────────────────────────────────────────────────────────────
Do… $ 9,7… 19.… 14.… 15.… 4.7% 48,… 41…
Eu… 3,3… 13.… 15.… 16.… -2.… 18,… 15…
Mi… 287 -17… 30.… 30.… -36… 1,4… 1,…
Ea…
At… 3,6… 10.… 16.… 17.… -5.… 20,… 17…
Pa… 1,5… 16.… 10.… 10.… 5.0% 11,… 9,…
La… 1,3… 24.… 30.… 27.… -4.… 7,9… 6,…
Am…
In… 6,5… 14.… 17.… 17.… -2.… 39,… 33…
Co… $ 16,… 17.… 16.… 16.… 1.3% 88,… 74…
Select operating statistics are as follows:
… N…
… % M… %
… … E… …
… … S… …
… 3…
… … … 2…
4… 4… 2… … 1… 3…
7… 7… 0… … 2… 3…
8… 8… 1… … 2… 2…
8… % 8… % -… … … % 8… % 0… …
8… % 8… % -… … … % 8… % — …
8… % 8… % — … … % 8… % 1… …
1… 1… 1… … 1… 1…
2… 1… 1… … 1… 1…
2… 1… 1… … 1… 1…
9… 8… 5… … 2… 3…
1… 1… 6… … 1… 6…
1… 1… -… … 1… -…
1… 1… 5… … 1… 5…
1… 1… 1… … 1… 1…
1… 1… 7… … 1… 6…
$ 3… $ 2… 6… $ … $ 2… 5…
1… 1… 0… … 3… 1…
(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.
10
United Airlines Reports Third-Quarter 2026 Results
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.
T… N…
M… % M… %
E… I… E… I…
S… (… S… (…
3… 3…
…
…
… 2… 2… 2… 2…
…
…
…
… 1… 1… 1… 1… 1… 12…
…
… 5… 3… 5… 5… 3… 49…
…
… 0… 0… -… 0… 0… -3…
…
…
… 0… 0… 1… 0… 0… -3…
…
…
… -… -… NM -… 0… NM
…
… 1… 1… 7… 1… 1… 6.6
…
11
United Airlines Reports Third-Quarter 2026 Results
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
…
… T… N… …
… M… M… …
… E… E… …
… S… S… …
… 2… 3… 2… 2… 3… 2… 2… … 2…
──────────────────────────────────────────────────────────────────────────────
…
… $ 1… $ 9… $ 2… $ … $ … $ …
…
…
…
…
… 7… 7… 2… … … …
…
…
…
…
…
… 1… 1… 4… … … …
…
…
…
…
…
… 2… 3… 6… … … …
…
…
… -… -… -… … … …
…
…
…
…
… 13 13 -… 8 … …
…
…
…
…
…
… — 20 6 … 6 …
…
…
…
…
… $ 2… $ 2… $ 5… $ … $ … $ …
…
…
… 1… % 1… % 1… % … % … % … %
…
…
…
… $ 2… $ 2… $ 5… $ … $ … $ …
…
…
…
… 2… 2… 7… … … …
…
…
…
…
… $ 2… $ 2… $ 5… $ … $ … $ …
…
Three Nine
Adjusted Months Months
Capital Ended Ended
Expendi… September September
million… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Capital
expendi…
net of
flight
equipme… $ 2,139 $ 1,464 $ 5,154 $ 3,984
purchase
deposit
returns
(GAAP)
Property
and
equipme…
acquired
through
the
issuance
or 54 — 140 -52
modific…
of debt,
finance
leases
and
other
financi…
liabili…
Operati…
leases
convert… — 417 66 417
to
finance
leases
Adjusted
capital $ 2,193 $ 1,881 $ 5,360 $ 4,349
expendi…
(Non-GA…
Th… Ni… Tw…
F… Mo… Mo… Mo…
C… En… En… En…
F… Se… Se… Se…
m… 20… 30, 20… 20… 30, 20… 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
N…
c…
p…
by $ 465 $ 1,… $ 6,… $ 7,… $ 8,… $ 9,…
o…
a…
(…
N…
c…
u…
in -3… -1… -7… -4… -8… -6…
i…
a…
(…
A…
f…
N…
c…
in 1,… 337 1,… 893 1,… 1,…
s…
i…
N…
c…
in -4 35 -7 36 -5 74
r…
c…
F…
c… $ -1… $ -1… $ 1,… $ 3,… $ 802 $ 4,…
f…
(…
Adjusted
Total Debt,
Adjusted Net
Debt
and Net
Leverage(in
millions,
except Increase/
ratios) 2026 September 30, 2025 (Decrease)
──────────────────────────────────────────────────────────────────────────────
Debt,
finance
lease
obligations
and
other $ 26,398 $ 25,428 $ 970
financial
liabilities
- current
and
noncurrent
(GAAP)
Operating
lease
obligations 7,897 5,894 2,003
- current
and
noncurrent
Pension and
postretirem…
liabilities 825 974 -148
-
noncurrent
Adjusted
total debt $ 35,120 $ 32,296 2,824
(Non-GAAP)
Less: Cash
and cash $ 6,648 $ 6,730 -81
equivalents
Short-term 8,005 6,599 1,405
investments
Adjusted net
debt $ 20,467 $ 18,967 1,500
(Non-GAAP)
Net leverage 2.4 2.1 0.4 pts.
(Non-GAAP)
12
United Airlines Reports Third-Quarter 2026 Results
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
… …
… …
… …
… % … %
… … … I…
… … … 2… … (…
──────────────────────────────────────────────────────────────────────────────
$ … $ … … $ 4… $ … …
… … … -… … NM
… … … 4… … …
… … … 1… … …
… … … 2… … …
… … … 1… … …
$ … $ … … $ 3… $ … …
$ … $ … … $ 3… $ … …
… … … -… … NM
$ … $ … … $ 2… $ … …
… % … % … p… 7… % … % … …
… % … % … p… 5… % … % … …
$ … $ … … $ 3… $ … …
… … … -… … NM
… … … -… 8 NM
— … … 6 … NM
$ … $ … … $ 2… $ … …
… % … % … p… 6… % … % … …
… % … % … p… 4… % … % … …
$ … $ … … $ 2… $ … …
… … … -… … NM
… … … -… 8 NM
— … … 6 … NM
6 — … 95 … NM
$ … $ … … $ 1… $ … …
$ … $ … … $ 7… $ … …
… … … -… … NM
… … … -… … NM
— … … 0… … NM
… — … 0… … NM
$ … $ … … $ 5… $ … …
13
United Airlines Reports Third-Quarter 2026 Results
UNITED AIRLINES HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30,
2026 December 31,
(in millions) (UNAUDITED) 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Cash and cash $ 6,648 $ 5,942
equivalents
Short-term 8,005 6,298
investments
Receivables, net 2,636 2,391
Aircraft fuel,
spare parts and 1,954 1,556
supplies,
net
Prepaid expenses 746 671
and other
Total current 19,988 16,857
assets
Operating
property and 49,368 46,121
equipment, net
Operating lease
right-of-use 6,992 4,958
assets
Goodwill 4,527 4,527
Intangible 2,641 2,655
assets, net
Investments in
affiliates and 1,604 1,330
other, net
Total noncurrent 65,132 59,591
assets
Total assets $ 85,120 $ 76,448
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Accounts payable $ 5,403 $ 4,567
Accrued salaries 3,007 3,900
and benefits
Advance ticket 10,672 8,131
sales
Frequent flyer 4,084 3,721
deferred revenue
Current
maturities of
long-term debt,
finance leases, 1,848 4,426
and other
financial
liabilities
Current
maturities of 934 631
operating leases
Other 691 757
Total current 26,639 26,133
liabilities
Long-term debt,
finance leases,
and 24,550 20,562
other financial
liabilities
Long-term
obligations 6,962 5,417
under operating
leases
Frequent flyer 3,881 4,056
deferred revenue
Pension and
postretirement 825 1,058
benefit
liability
Deferred income 3,093 2,463
taxes
Other 1,415 1,478
Total noncurrent 40,727 35,033
liabilities
Total
stockholders' 17,754 15,282
equity
Total
liabilities and $ 85,120 $ 76,448
stockholders'
equity
14
United Airlines Reports Third-Quarter 2026 Results
UNITED AIRLINES HOLDINGS, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
Nine Months Ended
(in millions) September 30,
Operating Activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 6,874 $ 7,145
activities
Investing Activities:
Capital expenditures,
net of flight -5,154 -3,984
equipment purchase
deposit returns
Purchases of short-term
and other -7,583 -6,454
investments
Proceeds from sale of
short-term and 5,779 5,654
other investments
Proceeds from sale of
property and 54 63
equipment
Other, net -289 -64
Net cash used in -7,192 -4,785
investing activities
Financing Activities:
Proceeds from issuance
of debt and other
financial liabilities, 6,698 485
net of discounts
and fees
Payments of long-term
debt, finance -5,541 -4,196
leases and other
financial liabilities
Repurchases of common -27 -610
stock
Other, net -98 -114
Net cash provided by
(used in) financing 1,031 -4,436
activities
Net increase (decrease)
in cash, cash 713 -2,075
equivalents and
restricted cash
Cash, cash equivalents
and restricted 6,081 8,946
cash at beginning of the
period
Cash, cash equivalents
and restricted $ 6,794 $ 6,871
cash at end of the
period (a)
Investing and Financing
Activities Not
Affecting Cash:
Right-of-use assets
acquired or modified $ 2,488 $ 1,382
through operating leases
Property and equipment
acquired through
the issuance or
modification of debt, 140 -52
finance leases and other
financial
liabilities
Operating leases
converted to finance 66 417
leases
Investment interests
received in 60 16
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 146 141
affiliates and other, net
Total cash, cash equivalents and $ 6,794 $ 6,871
restricted cash
15
United Airlines Reports Third-Quarter 2026 Results
UNITED AIRLINES HOLDINGS, INC.
NOTES (UNAUDITED)
Special charges (credits) and unrealized (gains) losses on investments, net
include the following:
Three Nine
Months Months
Ended Ended
(in September September
millions) 30, 30,
Operatin… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Labor
contract $ -2 $ — $ 182 $ 561
ratifica…
bonuses
(Gains)
losses on
sale of
assets -213 -73 -931 -295
and
other
special
charges
Total
operating
special -215 -73 -749 266
charges
(credits)
Nonopera…
Nonopera…
unrealiz…
(gains)
losses 13 13 -13 8
on
investme…
net
Nonopera…
debt
extingui… — 20 6 20
and
modifica…
fees
Total
nonopera…
special
charges
and 13 33 -8 28
unrealiz…
(gains)
losses on
investme…
net
Total
operating
and
nonopera…
special
charges
(credits) -202 -40 -757 295
and
unrealiz…
(gains)
losses on
investme…
net
Income
tax
expense
(benefit… 6 — 95 -127
net of
valuation
allowance
Total
operating
and
nonopera…
special
charges
(credits)
and $ -197 $ -40 $ -662 $ 168
unrealiz…
(gains)
losses on
investme…
net of
income
taxes
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 Nine
Mont… Months
Ended Ended
Sept… Septe…
30, 30,
2026 2025 2026 2025
Effe…
tax 21.5 % 24.4 % 21.0 % 22.5 %
rate
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.
# # #
16