United Airlines (UAL - Free Report) ended the recent trading session at $111.38, demonstrating a +2.5% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.
The airline's shares have seen a decrease of 15.85% over the last month, not keeping up with the Transportation sector's loss of 3.4% and the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.01, reflecting a 8.27% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.77 billion, up 16.68% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.91 per share and a revenue of $67.53 billion, signifying shifts of -6.69% and +14.32%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for United Airlines. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.45% downward. At present, United Airlines boasts a Zacks Rank of #3 (Hold).
In terms of valuation, United Airlines is currently trading at a Forward P/E ratio of 10.97. This signifies a discount in comparison to the average Forward P/E of 11.29 for its industry.
One should further note that UAL currently holds a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UAL's industry had an average PEG ratio of 0.72 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 198, positioning it in the bottom 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Customers keep their confirmed itinerary and select up to three earlier flights to stand by for
United automatically monitors those flights and sends a text when a seat becomes available
New feature rolls out in time to help the more than 3.4 million United customers expected to fly over the Labor Day holiday
, /PRNewswire/ -- United today announced an industry-first mobile app feature that gives customers more flexibility and options when travel plans are disrupted.
Now, customers who are rebooked to a later flight after a travel disruption can stand by for up to three earlier flights*. Instead of repeatedly checking the app to see if seats open up on earlier flights, United automatically monitors availability behind the scenes and sends a text notification when a seat becomes available.
Another First for United: Mobile App Lets Customers Join Standby for Earlier Flights and Automatically Finds Open Seats During Disruptions This new feature is rolling out just in time for the busy Labor Day travel weekend; more than 3.4 million people are expected to fly United between September 3-8 – about 300,000 more than last year. More than 85% of United customers use the airline's award-winning mobile app on the day they travel, making digital tools an increasingly important part of how customers manage disruptions and navigate their journey.
Customers can use the new feature in three simple steps:
Add yourself to the standby list on up to three earlier flights. Sit back while United automatically monitors those flights for available seats. Get a text when a seat becomes available and choose whether to switch to the earlier flight – while keeping your existing confirmed reservation until you decide. "This feature reflects our commitment to making travel more seamless and less stressful for our customers," said Jennifer Schwierzke, Vice President of Customer Operations, Strategy & Execution at United. "During disruptions, customers can keep their confirmed itinerary and stand by for three additional flights. We work behind the scenes to monitor availability and alert customers as soon as a seat becomes available."
The feature expands United's portfolio of self-service recovery tools, which allow customers to automatically rebook flights, receive meal and hotel vouchers when eligible and track checked bags during disruptions – all without having to wait in line to speak to an agent.
Recent mobile app updates that help customers prepare for travel, navigate changes and stay informed include:
A more seamless airport experience: Customers can now use Digital ID in Apple Wallet, which offers a secure and private way for users to add and use an ID in Apple Wallet using information from their U.S. passport, to make it easier to enroll in TSA PreCheck® Touchless ID right in the United app. Real-time inbound aircraft status updates: United is expanding its "Where is my plane coming from?" app feature by showing customers their inbound aircraft directly on the flight status page, providing even more insight into where their plane is before departure. TSA wait times tracker: As the first major U.S. airline to offer the feature, United introduced Transportation Security Administration (TSA) security wait time estimates† at U.S. hub airports, giving customers greater visibility into airport security lines before heading to the airport. Personalized connection support: United launched new, personalized app features that make catching connecting flights easier, including personalized, turn-by-turn directions to connecting gates with estimated walk times, real-time flight status updates, tips for longer layovers, and notifications powered by United's ConnectionSaver technology if the airline is able to hold a departing flight for those with an extra-tight connection. Bag tracking enhancements: United integrated Apple's Share Item Location, so customers everywhere who travel with an AirTag or Find My network accessory can seamlessly share the accessory location with United's customer service team to help locate their luggage in the event that it is misplaced or mishandled. For more information, visit united.com, and download the United mobile app here. Visual assets can be found here.
*Available for eligible earlier United flights to the same destination.
†Estimated security wait times are based on data available to United and may not reflect actual wait times, which may vary from the estimates.
About United
At United, Good Leads The Way. With U.S. 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 as measured by available seat miles. 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".
Key Takeaways United Airlines is adding 10 international cities and three new routes across Europe and Asia.United Airlines plans new Osaka, Milan and Paris services, plus a San Francisco-Tel Aviv return.United Airlines' A321XLR will support 2027 growth with new routes and upgraded cabin features. In a bid to strengthen its network and expand globally, United Airlines Holdings, Inc. (UAL - Free Report) recently announced multiple major initiatives in its business. These include the addition of 10 new international cities and three new routes across Europe and Asia, marking UAL’s largest international network expansion in its history and the launch of the newest international aircraft in its fleet, the 'Born to Explore' A321XLR.
The aforesaid announcement was made public at an event at Newark Liberty International Airport, which was attended by UAL’s chief executive officer (CEO), Scott Kirby; chief commercial officer, Andrew Nocella and senior vice president of Global Network Planning and Alliances, Patrick Quayle.
UAL’s CEO, Scott Kirby, stated, "The creative and strategic way we've expanded our international network since the pandemic has made all the difference, not only for our customers and employees, but also as a way to differentiate United and build a brand focused on customers. We offer the most flights across the Atlantic and Pacific and Newark is the best Atlantic gateway in the country - so far this year, it's the most on-time airport in the New York City area. We're going to keep building on that momentum as we welcome the new A321XLR to our fleet and continue to elevate the travel experience for every customer who chooses United."
UAL’s Global Expansion Plans & New Fleet DetailsUAL plans to start flying to 10 new international cities as early as March 2027. United Airlines' 10 new destinations include San Francisco (SFO) – Okinawa (OKA); Washington, D.C. (IAD) – Toulouse (TLS); Newark (EWR) – Luxembourg (LUX); Newark (EWR) – Ljubljana (LJU); Newark (EWR) – Olbia (OLB); Newark (EWR) – Catania (CTA); Newark (EWR) – Ibiza (IBZ); Newark (EWR) – Valencia (VLC); Newark (EWR) – Marseille (MRS); and Newark (EWR) – Terceira (TER). These 10 new international cities
UAL is also offering new international routes to destinations it already serves from three of its U.S. hubs. UAL plans to offer new daily service from Los Angeles to Osaka, Japan, thereby positioning itself as the only airline to serve Osaka from two continental U.S. cities. This route is slated to start on March 27, 2027, and is expected to boost UAL’s existing service from San Francisco and Guam.
From Washington, D.C., UAL plans to fly three times a week on a nonstop basis to Milan. Effective from May 28, 2027, this route will become the only airline to connect the nation's capital to Milan nonstop.
From Denver, UAL plans to fly on a daily nonstop basis to Paris, starting from May 27, 2027. This new route shall enhance UAL’s existing service from Newark/New York, Washington Dulles, Chicago and San Francisco.
UAL is also gearing up to resume services from San Francisco to Tel Aviv on March 28.
Additionally, UAL plans to relaunch the new destinations for summer 2027 (which were added in summer 2026) with flights from Newark/New York to Split, Croatia; Bari, Italy; Glasgow, Scotland; and Santiago de Compostela, Spain.
UAL’s 'Born to Explore' Airbus A321XLR is expected to amplify its international growth in summer 2027 with service to new destinations in Ibiza, Luxembourg, Marseille, Toulouse and Valencia.
Airbus A321XLR’s onboard travel experience comes with features like a new United Polaris suite with a privacy door, free Starlink Wi-Fi for MileagePlus members, 4K OLED screens with Bluetooth connectivity, a snack bar in United Economy and the new Economy Plus seats with extra elbow room and access to a shared table across an open middle seat. The aircraft also offers 32 premium seats (which include 20 United Polaris suites and 12 United Premium Plus seats). The number reflects 16 more premium seats than the Boeing 757-200.
To ConcludeUnited Airlines has been constantly working hard to expand internationally. Since 2017, UAL has added 58 international destinations to its route map. The airline now flies to more than 160 international destinations. UAL carries a Zacks Rank #3 (Hold).
Given that United Airlines’ goal is to be able to meet every traveler’s need, be it a business trip, a dream honeymoon, a bucket-list adventure, or a trip to hometown to see family, the latest announcements seem to be a strategic business step on UAL’s part.
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .
Expeditors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EXPD has an expected earnings growth rate of 28.6% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.
Seanergy Maritime Holdings currently sports a Zacks Rank #1.
SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.
American Airlines Group (OTCMKTS:AAMRQ – Get Free Report) and United Airlines (NASDAQ:UAL – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Analyst Recommendations This is a breakdown of recent recommendations and price targets for American Airlines Group and United Airlines, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score American Airlines Group 0 0 0 0 0.00 United Airlines 0 2 16 0 2.89 United Airlines has a consensus target price of $157.74, indicating a potential upside of 42.62%. Given United Airlines’ stronger consensus rating and higher probable upside, analysts plainly believe United Airlines is more favorable than American Airlines Group.
Institutional and Insider Ownership 69.7% of United Airlines shares are held by institutional investors. 0.9% of United Airlines shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term. Earnings and Valuation This table compares American Airlines Group and United Airlines”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio American Airlines Group N/A N/A N/A N/A N/A United Airlines $59.07 billion 0.61 $3.35 billion $10.69 10.35 United Airlines has higher revenue and earnings than American Airlines Group.
Profitability This table compares American Airlines Group and United Airlines’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets American Airlines Group N/A N/A N/A United Airlines 5.56% 19.05% 3.72% Summary United Airlines beats American Airlines Group on 9 of the 9 factors compared between the two stocks.
(Get Free Report)
American Airlines Group Inc., formerly AMR Corporation, operates in the airline industry. The Company’s principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of the Company, owns two regional airlines, which do business as American Eagle-American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.
About United Airlines (Get Free Report)
United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.
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United Airlines said Tuesday it's planning to add a host of new international destinations next year that span Ljubljana, Slovenia, to Okinawa, Japan, continuing its so-far profitable bet that consumers will keep spending big to try new destinations abroad.
United already offers more international service than other U.S. airlines and is selling destinations well beyond major tourist draws like Tokyo and Rome to capitalize on changing traveler tastes and grow profits, even as costs soar.
"They want to get away from the overcrowded, large European cities," said Patrick Quayle, United's senior vice president, who heads the carrier's global network planning and alliances.
Here are the additions:
San Francisco to Okinawa, Japan, starting March 27, on a Boeing 777-200ERNewark Liberty International Airport in New Jersey to Ljubljana, Slovenia, starting May 12, on a Boeing 767-400ERNewark to Olbia, Sardinia, in Italy, starting May 27, on a Boeing 767-300ERNewark to Catania, Sicily, in Italy, starting May 28, on a Boeing 767-300ERNewark to Ibiza, Spain, starting May 31, on an Airbus A321XLRNewark to Valencia, Spain, starting June 2, on an Airbus A321XLRNewark to Marseille, France, starting June 4, on an Airbus A321XLRNewark to Terceira in the Azores in Portugal, starting June 9, on a Boeing 737 MAX 8And two new business-travel routes:
Newark to Luxembourg, starting April 2, on an Airbus A321XLRWashington Dulles International Airport to Toulouse, France, starting April 26, on an Airbus A321XLRAirbus is based in Toulouse, and its U.S. office is in Herndon, Virginia, so that route — naturally, on an Airbus — targets the aircraft manufacturer and other aerospace business travel. Meanwhile, Amazon's European headquarters is in Luxembourg, while its second U.S. headquarters is in Arlington, Virginia.
United said it has added 49 new destinations since 2021 with its push and that it is the only U.S. airline to fly nonstop to 32 of those locations.
"All these new international destinations ... have become much longer seasons instead of just flying during the summer," United CEO Scott Kirby told CNBC's Phil LeBeau on Tuesday. "These go all the way through October. October has become one of our best months of the year."
Read more about United AirlinesAfter 10 years at United, CEO Scott Kirby is thinking big about the future of his airline from JFK to AIUnited's next decision: What to do with all those Boeing 737 Max 10 seats it ordered years agoUnited Airlines' new upsell: Keeping other travelers out of the middle seatUnited earnings top estimates but airline expects $6 billion in added fuel costsQuayle said United is trying to be a "one-stop shop" for customers at all stages of life "whether you're backpacking in college, you're going to and from Paris, whether you're in your 20s and you're going to a nightclub in Ibiza ... a business trip ... or a vacation or honeymoon in Sardinia."
He said United has noticed customers are taking more so-called open-jaw flights where they fly into one city and out of another — think into Rome and out of Bari on Italy's Adriatic coast without having to backtrack to a major city — so having multiple destinations in countries like Portugal, Italy, Spain and France could grab consumers' attention.
Quayle added that the carrier isn't dropping any of its existing routes to make room for the new ones.
United is the second-most profitable U.S. airline after Delta Air Lines, though Delta has fewer international destinations.
Delta's president, Peter Carter, told CNBC in June that the airline wants to fight United's dominance, especially for trans-Pacific flights. The airline this summer announced new service to Tokyo-Narita International Airport, as well as Manila in the Philippines, while launching its previously announced Los Angeles-Hong Kong route in June.
Other adds from United include nonstop service from Los Angeles International Airport to foodie paradise Osaka, Japan, which it already serves from its San Francisco hub. The airline is also adding flights from Denver to Paris and will restart service from San Francisco to Tel Aviv, Israel.
It also said earlier this year that it plans to launch flights from San Francisco to Sapporo, Japan, a high-end ski destination, in December.
United Airlines (UAL.O) said on Tuesday it expects enough Airbus (AIR.PA) A321XLR deliveries to support its European expansion next summer, as the carrier pushes into smaller markets and sees travel to the region staying strong into the autumn months.
The Chicago-based airline plans to use the long-range, single-aisle jet on five new European routes in 2027, including Luxembourg, Ibiza, Spain, and Toulouse, France. They are part of the largest international expansion in the airline's history, with service to 10 new cities in Europe and Asia.
Patrick Quayle, United's senior vice president of global network planning and alliances, acknowledged "a few teething issues" with the A321XLR program but said the airline expects to have an adequate number delivered to fly the routes.
"We feel confident that we will have the number of aircraft needed in order to operate the schedule," he told reporters.
Other airlines, including Air Canada (AC.TO), have faced delays in receiving A321XLRs as Airbus has grappled with production and supply-chain constraints.
United ordered the A321XLR in 2019 and plans to begin international service with the aircraft on December 1, 2026, from Washington Dulles to Amsterdam and Dublin.
The A321XLR will also help United phase out its aging Boeing (BA.N) 757 fleet. Quayle said United is phasing out its 757s as the A321XLR jets enter service, and that the fleet plan is continually updated to account for delays at aircraft manufacturers.
Airbus delays, however, have held up the entry into service of United's A321neo Coastliner fleet, planned for premium transcontinental flights.
EUROPE TRAVEL DEMAND STRETCHES INTO AUTUMN
United's expansion comes as the airline sees more European routes remaining viable later in the year.
Quayle said schedules are no longer being cut as sharply after the U.S. Labor Day holiday, with the season extending into October or even November.
"The schedule is not being pulled down as quickly in September as it used to be right after Labor Day," he said.
Air Canada said this month that revenue for September and October is likely to break records for those months as more premium travelers avoid the heat and summer crowds in Europe and Japan.
United said it had seen no decline in European travel this summer because of extreme heat. "Demand is incredibly strong," Quayle said.
A United Airlines Airbus A321XLR was on display at the Farnborough International Air Show in July. (Photo by John Keeble)
Getty Images
United Airlines on Tuesday got a jump on announcing its summer schedule, saying it will fly from Newark to eight new European cities, add five additional international hub flights and preview its newest aircraft, the Airbus A321XLR, next month.
So far, United has had success opening second tier European cities, so that is continuing. Also, Denver International, now the fourth busiest U.S. airport with 82 million passengers in 2025, will get non-stop year-round Boeing 787 Paris service on May 27th.
Also, United will debut its new Airbus A321XLR on select domestic flights September. The first international flights will be Dulles to Amsterdam and Dublin on Dec. 1. Tickets go on sale this Thursday.
On a call with reporters on Monday, Patrick Quayle, United Senior Vice President of Global Network Planning and Alliances, emphasized that United leads its two principal competitors, American and Delta, in international reach.
That apparently has given United the confidence to offer seasonal service to eight lesser-known European cities including Marseille and Luxembourg as well as Ibiza and Valencia, Spain; Terceira, Portugal; Ljubljana, Slovenia, and Olbia and Sicily on Italian islands. All will get seasonal service, with some starting in March.
Quayle said none of the cities United added last year have been dropped. These include Split, Croatia; Bari, Italy; Glasgow, Scotland; and Santiago de Compostela, Spain
Asked whether the overheated summer in Europe has had any impact on United transatlantic, Quayle said that it has not and that “demand is incredibly strong.” He noted, however, that in most markets United has “more and more markets where you can extend the season,” which is “going well into October or November.”
As for the A321XLR, Quayle said that flying a narrow body aircraft across the Atlantic is now accepted. “We have a brand-new aircraft with lie flat seats that are different than what’s on the market today,” he said. United’s XLR will also have three economy products, including “middle seat open,” he said. American already operates the aircraft on select domestic and transatlantic flights.
On the call, Quayle started out saying the “chance to show just how far we can push United’s international network.” The carrier has added 58 international destinations since 2017 and now has more than 160. It has “more flights, more seats, more destinations across both the Atlantic and Pacific than any other airline,” he said. Ten new cities are the most it has ever announced at one time, he said.
Regarding new permanent hub routes besides Denver-Paris, San Francisco will get thrice weekly Boeing 777 Okinawa service starting March 27th, while Washington Dulles will get daily non-stop to Toulouse, France, the headquarters for Airbus; thrice weekly to Milan and year-round A321XLR service to Luxembourg.
Milan “Is the largest unserved market for Dulles that did not have air service,” Quayle said. He noted, however, that Dulles-Senegal service, which started in Marcy 2025, “did not perform per expectations” and has been cancelled, with no expectation that it will be restarted.
Some of the eight new seasonal Newark destinations will be on Boeing 767s and some on the new A321XLRs. Also, Boeing 787 San Francisco-Tel Aviv will resume on March 28.
United is not starting any flights to Scandinavia, Quayle said, because “going north of Lufthansa hubs has been a challenge for us, neither Bergen nor Stockholm worked.”
Regarding the immense amount of speculation regarding where United would fly next summer, Quayle said he has a policy to delay telling CEO Scott Kirby about new destinations. “I only tell Scott like a day or two before for the very reason that he talks to all of you,” Quayle said.
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United Airlines announced on Tuesday that it is adding new routes from the U.S. to Europe and Asia, the largest international network expansion in company history.
Beginning as early as March 2027, United will fly to 10 new international cities across Europe and Asia, with flights originating from its hubs in San Francisco, Washington, D.C., and Newark, N.J. The airline currently flies to more international destinations than any other U.S. carrier.
"The creative and strategic way we've expanded our international network since the pandemic has made all the difference, not only for our customers and employees, but also as a way to differentiate United and build a brand focused on customers," said United CEO Scott Kirby.
UNITED REPORTEDLY APPROACHED DELTA AIR LINES ABOUT A POTENTIAL MERGER
United said the latest route additions are the largest international network expansion in company history. (United Airlines)
From San Francisco to:Okinawa, Japan (begins March 27; three times weekly on the Boeing 777-200ER)From Washington Dulles to:Toulouse, France (begins April 26; daily on the A321XLR)From Newark to:Luxembourg City, Luxembourg (begins April 2; daily on the A321XLR)Ljubljana, Slovenia (begins May 12; four times weekly on the Boeing 767-400ER)Olbia (Sardinia), Italy (begins May 27; three times weekly on the Boeing 767-300ER)Catania (Sicily), Italy (begins May 28; four times weekly on the Boeing 767-300ER)Ibiza, Spain (begins May 31; four times weekly on the A321XLR)Valencia, Spain (begins June 2; three times weekly on the A321XLR)Marseille, France (begins June 4; daily on the A321XLR)Terceira, Portugal (begins June 9; three times weekly on the Boeing 737 Max 8)UNITED AIRLINES DROPS MERGER PURSUIT WITH AMERICAN, CEO KIRBY DETAILS WHY
The airline is also adding flights to destinations it already serves, including Los Angeles to Osaka, Japan (begins March 27); Washington, D.C., to Milan, Italy (begins May 28); and Denver to Paris (begins May 27). United will also resume service from San Francisco to Tel Aviv on March 28.
United said on Tuesday it expects enough Airbus A321XLR deliveries to support its European expansion next summer, as the carrier pushes into smaller markets and sees travel to the region staying strong into the autumn months.
United will fly the Boeing 767 on flights from Newark to Slovenia and Italy. (Getty Images)
Patrick Quayle, United's senior vice president of global network planning and alliances, acknowledged "a few teething issues" with the A321XLR program but said the airline expects to have an adequate number delivered to fly the routes.
"We feel confident that we will have the number of aircraft needed in order to operate the schedule," he told reporters.
UNITED'S NEW SEATING OPTION DITCHES THE MIDDLE SEAT
Ticker Security Last Change Change % UAL UNITED AIRLINES HOLDINGS INC. 110.60 -1.79 -1.59% United ordered the A321XLR, a long-range single-aisle jet, in 2019 and plans to begin international service with the aircraft on Dec. 1, 2026, from Washington Dulles to Amsterdam and Dublin.
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United is phasing out its aging Boeing 757 fleet and will use the Airbus A321XLR on some of the Europe routes. (Kevin Carter/Getty Images)
Quayle said United is phasing out its Boeing 757s as the A321XLR jets enter service, and that the fleet plan is continually updated to account for delays at aircraft manufacturers.
United Airlines Chief Executive Officer Scott Kirby discusses the largest international expansion in the company's history, the strength he sees in both customer demand and the US economy, and plans to offset increased oil prices. The carrier will now fly to 10 more destinations in Europe and Asia.
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A United Airlines Airbus A321XLR pictured at Tuesday's event at Newark Liberty International Airport. Michael Nagle/Bloomberg via Getty Images United Airlines is looking to step up and be a dominant player on the world stage.
On Tuesday, it announced 10 new international routes. On eight of those routes, United will be the only US airline operating.
Five of the routes will be operated by the Airbus A321XLR, United's newest airplane. It is a single-aisle jet with an expanded range — unlocking long-haul destinations that wouldn't fill enough seats on a wide-body airplane.
The new routes are:
San Francisco to Okinawa, JapanWashington Dulles to Toulouse, France (XLR)Newark to Luxembourg (XLR)Newark to Marseille, France (XLR)Newark to Ibiza, Spain (XLR)Newark to Valencia, Spain (XLR)Newark to Terceira, PortugalNewark to Ljubljana, SloveniaNewark to Olbia, ItalyNewark to Catania, Italy Air travel is rough. Here's how the government is trying to fix it.
The new routes are planned to start next spring, beginning with Okinawa on March 27. The Spain and Portugal routes will be the last to launch, with a scheduled start date in early June.
Business Insider toured a United A321XLR at last month's Farnborough Airshow. As well as 20 Polaris business-class suites and 12 in Premium Plus, it also features a European-style premium class, which blocks out a middle seat with a shared table to give customers extra elbow room.
While United is already the world's largest airline, with over 1,100 airplanes, it's seeking a leading role globally.
At a media event on Tuesday, United CEO Scott Kirby told reporters more about his ambitions.
He said he wanted to create an airline that all Americans "think of as the flag carrier of the United States," according to an X post from Tim Jue, an aviation journalist.
"Just like somebody in Dubai is proud of Emirates, I want American US citizens to feel the same way about United Airlines," Kirby reportedly added.
A Polaris suite on United's Airbus A321XLR. Pete Syme/Business Insider While most countries designate one or two airlines as the national airline, or flag carrier, the US defines all its internationally operating airlines as flag carriers.
This makes it harder for one of the Big Three — United, Delta Air Lines, and American Airlines — to gain distinct supremacy.
However, Kirby has been exploring the possibility of a mammoth merger.
Last month, The Wall Street Journal reported that United approached Delta about a merger, but talks did not advance beyond the preliminary stages.
Following a similar report in April, American Airlines released a statement saying it "is not engaged with or interested in any discussions regarding a merger with United Airlines."
While expanding internationally helps raise United's profile, there's still a way to go before it could claim to be on Emirates' level, with an immense global network and elite first-class suites.
"The truth is, those carriers in Asia and the Middle East have a better product than any airline in the Western world, including United," Kirby told Live and Let's Fly last Thursday.
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Pete Syme You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Pete Syme is an aviation reporter for Business Insider, based in London.He writes about all things related to the industry, from aviation safety and CEO interviews to route reveals and airplane tours. Pete also uses data for industry analyses and to visualize breaking news events.Before joining Business Insider in 2022, he graduated with an MA in Newspaper Journalism from City, University of London, and a BA in English from the University of Exeter.
United Airlines Airlines Aviation More Europe Travel
Airline fares are climbing fast and CEOs say they have room to push higher, yet one major carrier trades like the market expects it to fail. The case for United Airlines as the last undervalued play in the sector rests…
U.S. airline fares rose 25.5% year over year in July, and United Airlines CEO Scott Kirby has told Reuters he expects further gradual increases in the first half of 2027 if demand holds.
The market has not treated United Airlines Holdings (NASDAQ:UAL | UAL Price Prediction) like a beneficiary. Shares closed at $114.83 on August 26, up only 2.69% year to date, while Delta Air Lines (NYSE:DAL) has climbed 20.64%. The premise of this article is whether United is the last genuinely cheap major airline.
Fare Story Belongs to the Industry, Not Just United The 25.5% figure describes fares across U.S. carriers, not United’s own ticket prices. Kirby has framed the increase as a structural catch-up because airport fees have risen roughly 60% since COVID and maintenance costs are “off the charts.”
He told investors that “airfares are down still 13% in real terms compared to where they were in 2019,” which is the frame he uses to argue current pricing is durable. Robert Isom at American echoed the point, saying “the price of air travel remains a bargain.”
United’s second-quarter revenue reached $17.672 billion, up 15.99% year over year, with TRASM up 12.1%. Andrew Nocella said the airline saw “minimal to no negative impact on demand from higher price points.”
Management believes it can recover 80-90% of the fuel increase in Q3 and 100% by Q4. Investors should treat it as a target rather than a promise.
Valuation Gap Is Real but Narrower Than It Looks United trades at a forward P/E of 11x, compared with Delta’s 13x. Against its own 2026 EPS range of $9 to $11, United looks priced for skepticism.
Delta earns that premium. Its diversified revenue streams accounted for 61% of total revenue, and management reaffirmed full-year EPS of $6.50 to $7.50 while raising the dividend by 15%.
United carries $26.5 billion of debt but is “right on the precipice” of investment-grade metrics. The discount reflects leverage and fuel exposure as much as pricing power.
Analysts see room to close it, with an average price target of $161.28. The multiple understates the pricing story only if fuel recovery lands where Kirby says it will.
American Is Cheap for a Reason American Airlines Group (NASDAQ:AAL) closed at $13.84, down 60.37% over the past 10 years. Revenue grew 16.28% in Q2, yet the airline guided full-year EPS to a range of ($0.65) to $0.65.
The balance sheet tells the harder story: shareholders’ equity of-$3.972 billion and roughly $34.7 billion in total debt. America’s low prices are not a bargain in any quality-adjusted sense.
Isom conceded that “the current fuel curve has dampened our near-term expectations,” and near-term losses make American a bet on normalization rather than execution.
United is the cheapest of the three that is actually earning money at scale, but the discount is a fuel-recovery bet. If Kirby lands the 2027 pricing environment he is describing, the multiple looks too low. If jet fuel stays near $4, the market has priced UAL about right.
Contact [email protected] for any questions or corrections.
In the latest close session, United Airlines (UAL - Free Report) was down 2.1% at $112.42. This change lagged the S&P 500's 0.72% gain on the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 1.57%.
Shares of the airline witnessed a loss of 3.84% over the previous month, trailing the performance of the Transportation sector with its loss of 2.67%, and the S&P 500's gain of 3.68%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. In that report, analysts expect United Airlines to post earnings of $3.01 per share. This would mark year-over-year growth of 8.27%. At the same time, our most recent consensus estimate is projecting a revenue of $17.77 billion, reflecting a 16.68% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.91 per share and a revenue of $67.53 billion, demonstrating changes of -6.69% and +14.32%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for United Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 5.45% fall in the Zacks Consensus EPS estimate. United Airlines is currently a Zacks Rank #3 (Hold).
Digging into valuation, United Airlines currently has a Forward P/E ratio of 11.59. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 11.59.
We can also see that UAL currently has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.93 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The Iran war has been going on for six months, with seemingly no end in sight. In the best-case scenario, the situation turns into a stalemate. Worst case, tensions and conflict escalate. Either way, it's not looking good for the Strait of Hormuz fully opening to shipping traffic.
With this, crude oil prices appear primed to remain elevated, which means jet fuel prices will remain high. Is this a sign to get out of airline stocks? Not necessarily. In large part, an industry trend has indirectly helped to lessen the impact of this major headwind.
Image source: Getty Images.
Rising jet fuel prices lead to differing outcomes for the airlines When the conflict started, shares in major and low-cost airlines alike experienced a sharp pullback. That's unsurprising, as soaring jet fuel prices typically reduce airlines' profitability, even when they raise ticket prices in response. Worse yet, the conflict served as the final nail in the coffin for one particular low-cost airline.
On May 2, already-bankrupt Spirit Airlines completely suspended operations. Yet while some airlines have struggled with this headwind, for many other carriers, both low-cost and legacy, it's become a manageable issue.
Premiumization proves key to legacy carrier resilience For low-cost carrier Allegiant (ALGT -1.71%), strategies like reducing off-peak flying, in tandem with higher ticket prices, have helped mitigate rising fuel costs. However, even after bouncing back during the summer, shares in this particular low-cost carrier have coughed back these gains.
In contrast, shares of United Airlines Holdings (UAL -1.59%) and Delta Air Lines (DAL -1.32%) have bounced back, with Delta trading above pre-war price levels. Why? These carriers have both raised prices to offset high fuel costs and have leaned into "premiumization," or a greater focus on affluent travelers, resulting in increased demand for premium tickets, making up for weakening demand from economy-tier passengers.
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While the ongoing conflict could mean further uncertainty for low-cost carriers and for legacy carriers benefiting less from premiumization, like American Airlines, barring major changes to their respective financial performances, I wouldn't view the Iran war as a reason to sell United or Delta shares.
For a flight with less than half an hour in the air, United Airlines’ revived California route comes with a sky-high price tag: $200.
The airline brought back daily service between Los Angeles International Airport (LAX) and Bakersfield’s Meadows Field on Aug. 11, per InsideFlyer. The route gives travelers a way to avoid the notoriously congested drive between the two cities.
However, the convenience comes at a hefty cost for the short journey.
The inaugural United flight from LAX to Bakersfield took off and returned to LAX with passengers earlier this month. 23 ABC BAKERSFIELD Passengers can expect to pay hundreds of dollars to fly a short distance that is often just a few hours on the road.
The scheduled trip takes about an hour from departure to arrival, although much of that time isn’t spent flying. The distance between LAX and Bakersfield is only about 109 miles.
The daily schedule has United flight UA4804 leaving LAX at 10:43 a.m. and UA4730 returning from Bakersfield at 2:03 p.m.
For travelers staring down a $200-plus fare, the math may seem particularly jarring.
Even with the steep price tag some travelers say they are excited to have the route available to them, which costs just over $200. 23 ABC BAKERSFIELD And that’s before factoring in the time it takes to get to the airport, clear security, board and wait for takeoff. Still, local officials say the route could be a game-changer for travelers who value convenience over cost.
Meadows Field has been promoting the service as an alternative to driving to LAX, where travelers can face brutal traffic, expensive parking and lengthy airport lines.
Local officials say the flight route could be a game-changer for travelers who value convenience over cost and want to avoid traffic and security long lines. 23 ABC BAKERSFIELD
United’s Bakersfield-Los Angeles service is scheduled to operate daily, with a morning departure from LAX and an afternoon return from Meadows Field. 23 ABC BAKERSFIELD “We’re hoping that people use us as an option,” Erin Briscoe-Clarke, Kern County’s chief communications officer, told 23ABC. “It’s easy to fly out of Meadows Field. It’s convenient, stress-free, parking is easy, getting here is easy.”
Some passengers say that convenience makes the steep price worthwhile.
Steve Wilkinson, who flew the route while traveling with his wife, said the ease of using the smaller Bakersfield airport was a major selling point.
“I realized I had left something in the car in the parking lot, and it took me three minutes to go back out and get it,” Wilkinson told the outlet, noting that the same mistake at a larger airport could have been disastrous.
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Other travelers are looking at the flight as an escape hatch from Southern California’s legendary freeway congestion. Michael Bowers said he has previously left home before dawn only to spend hours trapped in traffic heading toward LAX.
“Sometimes I’ve left [at] 4:30 in the morning to be held up by traffic for like 4 hours,” Bowers explained.
United’s Bakersfield-Los Angeles service is scheduled to operate daily, with a morning departure from LAX and an afternoon return from Meadows Field.
For travelers willing to pay the premium, the route offers a remarkably quick alternative to the highway.
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NEWARK, New Jersey — Scott Kirby says he doesn't believe in revenge.
"Everyone thinks I do, but no, I don't," said the United Airlines CEO, whom American Airlines fired 10 years ago, when he was president of that carrier. "I compete aggressively."
United announced it had hired him as president on Aug. 29, 2016, a blink after American disclosed his departure. Now, Kirby is running the second-most profitable U.S. airline after Delta Air Lines. And his former employer, American, is a distant third of the big, more-than-century-old, U.S. carriers, though it's working to ramp up revenue through a host of upgrades, including bringing back seatback screens.
Kirby floated the idea of megamergers with both Delta and American in the past year, combinations that would bring together some of the biggest airlines in the world. He's so far been rebuffed, and antitrust experts were skeptical about the possibility.
He's thinking bigger than he has before as the industry faces ever-higher costs, limited airport infrastructure and a population that's ready to shell out more to fly — often in the expensive seats — to the next "it" destination.
Eyeing JFK from EWRCNBC rode with Kirby from the west side of Midtown Manhattan to United's hub at Newark Liberty International Airport in New Jersey earlier this month, where the 59-year-old executive outlined his vision for the carrier before his flight.
Kirby said he wants to expand United's footprint at New York's John F. Kennedy International Airport after his airline returns to the congested airport through a partnership with American's former partner, JetBlue Airways, as early as next year.
"We got a bunch of irons in the fire to try to find ways to do it," he said, adding that United could at some point acquire slots from carriers that aren't flying profitable routes out of the airport.
And while United already holds the crown among U.S. airlines for international flights, which are in high demand among U.S. tourists, he wants to expand the carrier's footprint abroad even more. This week, United is set to announce a host of new international routes, the carrier's annual splash that has previously included new dots on the map like Ulaanbaatar, Mongolia and Bilbao, Spain.
United has been touting its international expansion for years, saying its vast network acts as a driver for customer loyalty and sign-ups for lucrative travel rewards credit cards. Its route announcements typically come with much fanfare.
Read more about United, Delta and AmericanAmerican Airlines to add seatback screens, bigger first class in race to catch up to Delta and UnitedCompanies spurn airlines’ cheapest business class tickets‘Bring ‘em on’: Delta wants United’s crown over the Pacific, tooUnited CEO brushes off airline mergers after American rejection: ‘There’s nothing’How Delta made itself America's luxury airline — and what United wants to do about itKirby, a three-decade airline executive, is the United States' most outspoken airline CEO. His team knows this, and they've stopped telling him well in advance what will be on tap for the next batch of Instagram-friendly routes.
"They no longer tell me in advance because they're afraid I'll spill the beans, which is fair," he said.
While Delta has still had a lead on profits, CEO Ed Bastian doesn't want to give up ground to United. It is starting to expand flights over the Pacific, a United stronghold.
"People say, 'Well, when is it someone else's turn?' Well, I'm never going to let that be someone else's turn. It's always our turn," Bastian told students at Columbia Business School in April 2024. "We always get a chance to prove it every single day. ... Yesterday really doesn't matter. It's only today and tomorrow that you can think about."
1 minute breakIt's been a decade since Kirby started at United. He joined the airline in August 2016 after he was let go by American when he was president and didn't have a path to eventually becoming CEO.
United dropped a securities filing just after American disclosed Kirby's departure, saying he would be taking the president role at the Chicago airline. American promoted then-Chief Operating Officer Robert Isom to president that day, Kirby's old role. Isom was named American's next CEO in late 2021.
"I joke that most people take a few weeks, a couple months between jobs. I took 60 seconds," Kirby said.
United promoted Kirby to CEO from president in May 2020, while the industry was reeling from Covid, its worst-ever crisis.
The executive ranks at the tops of United and American trace their roots back to America West and other airlines, before a wave of mergers over the past two decades left four carriers holding more than three-quarters of U.S. flight capacity.
"One of the things also I learned at American: There's only so much change you can make as the No. 2," he said. "You can push too hard and you get fired."
United was in the midst of upgrading its cabins when Kirby joined in 2016, including with its highest-end Polaris pod seats for long-haul business class. But he said his first order of business was going through money-losing routes with a highlighter to figure out what was working and what wasn't.
The company considered closing its bases at Los Angeles International Airport and Washington Dulles International Airport in Virginia. Kirby said he stopped that idea, and both stayed open.
The airports are critical for United. LAX is one of the airline's most important hubs, though no carrier has a handle on that airport like they do others. And Kirby took a day trip from his son's soccer camp in Brazil last month to fly up to meet with President Donald Trump to unveil a $22.5 billion revamp of Dulles in the Oval Office.
AI, mergers and the future of travelStock analysts and legal experts were highly skeptical about a merger between United and one of the other U.S. giants.
People familiar with the matter said Kirby approached Delta but was turned down, as The Wall Street Journal first reported last month. The people spoke on the condition of anonymity to discuss the talks. Delta declined to comment. The carrier's president, Peter Carter, told CNBC at an industry conference in June that he doesn't see a merger or acquisition in Delta's future.
American, meanwhile, publicly rejected a merger offer from United this spring.
"At the end of the day, we spend time looking at things that have a chance of happening. We don't spend a lot of time pursuing impossibilities," Isom told CNBC in an interview in late June.
Kirby told CNBC that he hasn't changed his stance and he's not interested in acquiring a smaller airline, like JetBlue. "That's still the case," he said.
"Everything I say would require a willing partner," Kirby said.
When asked about antitrust concerns and likely pushback from state attorneys general, he said, "All of the objections are ... based on a premise that the airline industry is a commodity."
And Kirby said the industry has since evolved and that Delta and United have differentiated themselves, with their routes, onboard cabins and other products.
Read more CNBC airline newsCompanies spurn airlines’ cheapest business class ticketsAmerican Airlines will stop upgrading elite flyers to business from coach on long domestic flightsWhy flights are so expensive and will likely stay that waySouthwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worriesUnited Airlines’ new upsell: Keeping other travelers out of the middle seatRecord heat, crowds drive offseason boom in international travelHe said he wants United to grow in South America and in the Southeast U.S., but there's a lack of places to build out new hubs that make sense.
"Those are two places that are holes for United that are hard to fix on a stand-alone basis," Kirby said.
The best place for serving South America is Miami International Airport, he added. American had a more than 60% share of passenger enplanements in the 2025 fiscal year, according to airport data.
Putting mergers aside, Kirby said artificial intelligence tools for both employees and customers will make traveling easier and improve reliability, a tall order for any airline that is susceptible to weather, constrained airports and a host of other daily surprises from mechanical problems.
He wants delays expressed in clear English to customers.
"I firmly believe in no excuses, and so we don't make excuses," he said.
Even still, in the first half of the year, United ranked behind Delta and Alaska Airlines, which recently merged with Hawaiian Airlines, for on-time arrivals, according to the Transportation Department.
Kirby said outside factors or outright crises will always challenge the industry and said he is focused on the long-term future of the airline.
"Our employees often ask me like, 'What keeps you awake at night,' and I tell them, 'nothing,'" he said. "My job is to set the company up so none of you ever have to have a sleepless night worrying about your jobs."
He said his goal is to never have another furlough at the airline.
When asked if he would retire eventually, Kirby said, "I hope I will know when to retire and do it gracefully with a great transition with great people."
ESPN host and fantasy expert Tyler Fulghum to take part in live draft on board a United flight while Field Yates, Mike Clay, Liz Loza and others draft from ESPN's broadcast studio in Bristol, Connecticut
2026 ESPN Fantasy Football Draft is scheduled for August 25 from 9 to 11 p.m. ET on ESPN and co-streamed to the NFL on ESPN YouTube
Live broadcast showcases the superior performance of the world's fastest, most reliable inflight Wi-Fi
, /PRNewswire/ -- Disney Advertising and United Airlines will take ESPN Fantasy Football to new heights as a member of this year's annual ESPN Fantasy Football Draft makes his picks from 35,000 feet on board a United flight powered by Starlink, the world's fastest, most reliable inflight Wi-Fi.
ESPN host and fantasy expert Tyler Fulghum will be on board a United flight while NFL Insider Field Yates, Writer/Analyst Mike Clay, Fantasy/Betting Writer Liz Loza and others draft alongside him from ESPN's broadcast studio in Bristol, Connecticut.
Disney Advertising & United Airlines Take ESPN Fantasy Football to New Heights: This Year’s Televised Draft Event Includes Live Picks from 35,000 Feet on Flight Powered by Starlink Wi-Fi The 2026 ESPN Fantasy Football Draft is scheduled for August 25 from 9 to 11 p.m. ET on ESPN and co-streamed to the NFL on ESPN YouTube.
Fans who tune in to this first-of-its-kind experience also get behind-the-scenes content from ESPN's social correspondent, Omar Raja, who will capture and share the action before, during and after the flight across social channels.
"Sports fans don't want to miss the moments they care about – especially when they're traveling. Fantasy Football draft day is a can't-miss event for millions of fans, and until now, being in the air could mean handing over your picks to auto-draft. Starlink Wi-Fi on United flights is changing that," said Maggie Schmerin, United's Chief Advertising Officer. "This live draft with ESPN shows how Starlink on United is opening up a new era of possibilities on board, where moments that matter don't stop when you take off."
In addition to participating in the live broadcast, Tyler will film a new broadcast commercial on board, showcasing how fans can stay connected to the moments that matter most – even at 35,000 feet. Produced by Disney Advertising, ESPN and United, the spot will air as part of ESPN's broadcast coverage of the 2026 ESPN Fantasy Football Marathon.
In 2024, United set a new standard of inflight connectivity by signing at the time the industry's largest agreement of its kind with SpaceX to bring Starlink's fast, reliable Wi-Fi service to the airline's mainline and regional aircraft fleet, for free for MileagePlus® members. Today, Starlink is active on more than 500 United mainline and United Express® aircraft.
For more information, visit united.com.
About United
At United, Good Leads The Way. With U.S. 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 as measured by available seat miles. 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".
Key Takeaways United Airlines added 40 CAE training devices since 2022, bringing the Denver center's total to 86.The center can conduct over 32,000 training events annually and train up to 860 pilots per day.United Airlines expects phase-two groundbreaking in 2027, with the expanded facility operational around 2030. In a bid to strengthen its network, United Airlines Holdings, Inc. (UAL - Free Report) is expanding its footprint beyond providing airline services to passengers to training pilots. To this end, United Airlines announced the completion of the first phase of expansion of the pilot training facility, adding 40 new CAE training devices (a combination of full-motion and fixed simulators) since 2022.
UAL’s chief executive officer (CEO), Scott Kirby, was accompanied by CAE's president and chief executive officer, Matthew Bromberg, along with other UAL and CAE leaders, to acknowledge the completion of phase one.
Kirby stated, "United pilots are the best aviators in the world, and the pace at which our team has completed this project is an example of making investments that support our high standard of excellence."
Phase two of the expansion project is set to start next year and is anticipated to be operational by 2030.
UAL’s Flight Training Center DetailsUAL’s Flight Training Center is located in the Central Park neighborhood of Denver. The facility is spread across 22 acres (almost 700,000 square feet of training space) and is the only training facility for the airline's nearly 18,000 active pilots and all newly hired pilots.
UAL's flight training center now has eight total buildings and a total of 86 CAE training devices: 52 state-of-the-art full-motion flight simulators and 34 fixed training devices. The center can conduct more than 32,000 training events annually and train up to 860 pilots per day. The facility operates 24 hours a day for 362 days a year.
UAL has started formal site building plans and expects groundbreaking on the next phase of the Flight Training Center expansion to begin on the new land in 2027, with the facility expected to be operational around 2030. The airline plans to supervise the additional Flight Training Center in conjunction with its current facility.
The Center was originally constructed between 1966 and 1968 as part of the Stapleton Airport complex and has been used as UAL’s main pilot training facility since then. Since 2016, UAL has invested $370 million in the Flight Training Center overall.
UAL’s Expansion in DenverUnited Airlines has spent nearly $1 billion in investments since 2021 to boost the customer experience in the region, as Denver is one of its fastest-growing hubs. In 2025, nearly $40 million was spent on hotel room nights in Denver for pilots visiting the training facility, with an expectation to spend nearly $50 million on hotel room nights in 2026.
UAL hired more than 1,400 people in Denver last year and plans to hire more than 1,300 people in 2026.
To ConcludeUnited Airlines continues to be the popular career destination choice for pilots, given its largest widebody fleet in North America and the global network and hubs across the United States. UAL has hired more than 9,500 pilots since announcing its United Next growth strategy in 2021. In 2026, UAL has hired 700 pilots so far, with plans to hire hundreds more this year.
Given this encouraging backdrop, the expansion seems to be a strategic business step on UAL’s part, reflecting its strength in training pilots.
UAL's Zacks Rank and Stocks to ConsiderPresently, UAL carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) as well.
Expeditors currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EXPD has an expected earnings growth rate of 28.6% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.
Seanergy Maritime Holdings currently sports a Zacks Rank #1.
SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.
Yesterday, Elon Musk quote-posted a viral X thread claiming Delta customers were rebooking to competitors specifically to access Starlink Wi-Fi. His caption was just eight words: “I warned them. It will get much worse.” The post has drawn more than 50,000 likes and 4,600 reposts.
Earlier this year, Delta Air Lines (NYSE:DAL | DAL Price Prediction) selected Amazon’s Leo satellite network for free in-flight Wi-Fi, with service beginning in 2028. Musk has previously (and publicly) criticized that decision, calling it a painful and expensive choice.
Yesterday’s post is just another chapter in that very public disagreement.
What Delta Actually Chose, And Why Delta CEO Ed Bastian’s public rationale was that Amazon beat Starlink on price and on technology. On the July 10 earnings call, Bastian reiterated the roadmap: “And starting in ’28, Amazon Leo will unlock the next generation of onboard connectivity, reach, and personalization.” Amazon (NASDAQ:AMZN) has close to 400 satellites in orbit and expects initial service this year, though the deal is not financially material to a company with $200.6 billion in quarterly revenue.
The contrast with United Airlines Holdings (NASDAQ:UAL) is real. United, whose Starlink partnership is with Musk’s SpaceX (NASDAQ:SPCX), has installed the service on 450 aircraft and targets close to 1,000 Starlink-equipped aircraft by year-end, with fleet-wide coverage by 2027. CEO Scott Kirby has told investors Starlink “is going to lead to big share gains for us.”
Musk’s argument I think can be summed up as “it’s already beginning.”
Of course, it should be noted here that Delta serves more than 200 million customers annually across up to 5,500 daily flights. A few hundred visible complaints measures posting behavior on X, not travel demand across the network.
Where A Real Passenger Shift Would Show Up For investors, the question is where defections would actually appear in reported numbers. Four line items matter.
Unit revenue on long-haul routes. This is where continuous connectivity is most valuable. Delta’s Q2 total unit revenue grew 12.4%, with international unit revenue up 8%. United’s Q2 TRASM grew 12.1%, with Atlantic PRASM up 12.1% and Pacific PRASM up 14%. Persistent underperformance by Delta on transcontinental and transatlantic PRASM, relative to United, would be a reasonably clean signal.
Corporate contract share. Business travelers who need working Wi-Fi would defect first. Delta reported corporate sales up more than 20%, and premium corporate sales up more than 25%. United reported contracted business revenue flown up 27% and bookings up 30%. Watch whether the gap widens.
Loyalty and co-brand economics. Delta’s Q2 American Express remuneration hit $2.40 billion, up 16%. Full-year Amex remuneration is expected at $9 billion. Deterioration here would matter far more than any X thread.
Premium mix and load factors. Delta’s Q2 premium revenue rose 17%; loyalty revenue rose 19%. Diversified streams were 61% of total revenue. Route-level paid load factor in premium cabins is where a real shift bites first.
Your Next Checkpoint Delta and United are both expected to report their next quarterly earnings in October. Of course, both quarters will land before any Amazon Leo hardware appears in a Delta cabin.
Delta is guiding to Q3 EPS of $2.00 to $2.50 and full-year EPS of $6.50 to $7.50. Its Q2 8-K also announced a 15% dividend increase. United raised full-year EPS guidance to $9.00 to $11.00. Delta is up about 21% year to date; United is up ~4%.
Airline switching costs are network, schedule, hub geography, and elite status. Onboard Wi-Fi is a tiebreaker. It becomes a driver only when unit revenue says so, and right now it does not.
Contact [email protected] for any questions or corrections.
The 2026 airline ranking tells a single story about how much of each carrier's business sits outside the seat, and Delta has won the year by a wide margin.
David Tepper’s Appaloosa Management disclosed brand-new stakes in American Airlines and Boeing in its Q2 2026 13F filing (positions as of June 30, 2026, disclosed roughly 45 days later). That filing pulls the billionaire who nailed the memory-chip cycle into aviation. The move deserves scrutiny because of what it signals about where he is hunting next.
The Micron Call That Earned the Microphone
Tepper tripled Appaloosa’s Micron stake in early 2026. The timing was ideal. Micron Technology (NASDAQ:MU | MU Price Prediction) has since ripped: shares closed at $971.66 on August 14, 2026, up 240.65% year to date and 676.79% over the trailing year. Rising fundamentals continue to validate the trade: fiscal Q3 revenue of $41.5 billion (up 346% year-over-year), non-GAAP EPS of $25.11, and Q4 guidance of $50 billion in revenue with EPS of $31 plus or minus $1. SanDisk (Nasdaq: SNDK), a position that Tepper completely sold out of last quarter, just issued 2028 to 2030 guidance that points to gross margins stayign elevated at 80% in that period. That’s extremely bullish for memory stocks, as it points to longer duration pricing power than the market is currently expecting.
Appaloosa returned 32% in the first half of 2026, and Bloomberg reported on July 6, 2026 that the gain was driven by memory-chip makers. Even after trimming in Q2 2026, Micron remained one of Appaloosa’s largest disclosed lines at 975,000 shares valued at $1,125,432,750, with the position reduced by 690,000 shares. He took some chips off the table but did not walk away.
The New Trade: Both Ends of the Aviation Chain
The fresh disclosures tell the story. Appaloosa opened a new position in American Airlines of 7,500,000 shares valued at $135,525,000, one of its largest new positions by share count in the entire filing. It also opened a new position in Boeing of 800,000 shares valued at $173,176,000. American Airlines Group (NASDAQ:AAL) is the carrier. Boeing (NYSE:BA) builds the aircraft. Buying both signals a view on aviation as a system, not a single-company bet.
Tepper was not alone. In the same quarter, Berkshire Hathaway added 17,510,544 Delta Air Lines shares, and Stanley Druckenmiller’s Duquesne Family Office opened a new Delta position of 603,000 shares and added 532,300 shares to United Airlines. Three of Wall Street’s most respected allocators moved into aviation in the same quarter.
The Cyclical Playbook, Reapplied?
Tepper built his 2026 returns on a call in memory, the most brutal boom-and-bust industry in technology. Airlines are the other classic deep-cyclical trade. Q2 fundamentals frame a turn: American posted record quarterly revenue up 16.3% year-over-year, with managed corporate revenue up 26% and premium unit revenue up more than 13%, though CFO Devon May flagged a nearly $6 billion year-over-year fuel headwind for the full year. Boeing is running 737 MAX at 47 per month with a path to 52, delivered 171 airplanes in Q2 (highest since 2018), and sits on a $715 billion backlog with free cash flow guidance of $1 to $3 billion.
Valuations reflect early-cycle positioning. American closed at $14.83, down 3.26% year to date. Boeing closed at $231.67, up 6.7% year to date. Analyst target on American sits at $19.03; Boeing’s is $274.85.
Should Retail Follow?
Holdings are point-in-time as of June 30, 2026 and are not necessarily current positions. That caveat matters more with cyclicals. The reason to pay attention is the convergence: multiple elite allocators, both airframer and carrier, moving into a sector coming off a cost shock with capacity discipline returning. For a retirement-focused investor, Boeing offers backlog visibility with less leverage risk than American, which still carries a negative book value of -$6.00 per share. Worth researching, but not worth mimicking blindly.
Contact [email protected] for any questions or corrections.
A month has gone by since the last earnings report for United Airlines (UAL - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is United due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for United Airlines Holdings Inc before we dive into how investors and analysts have reacted as of late.
Earnings Beat in Q2United Airlines reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.
UAL Benefits From Strong Passenger Revenue TrendsPassenger revenues increased 16.4% year over year to $16.10 billion. Domestic passenger revenues advanced 20.3%, while international passenger revenues rose 11.2%. Pacific revenues increased 18.7%, Europe gained 10.2% and Latin America improved 10.5%, partly offset by a 16.4% decline in the Middle East, India and Africa region.
Consolidated passenger revenue per available seat mile increased 12.5%, while yield rose 12.1%. Premium revenues grew 16%, Basic Economy revenues advanced 11% and loyalty revenues increased 11%. Contracted business revenues jumped 27%, reflecting robust close-in demand.
United Airlines Posts Better Traffic and Load FactorTraffic, measured in revenue passenger miles, increased 3.8%, while capacity rose 3.5%. With traffic growth slightly outpacing capacity expansion, the consolidated load factor improved 0.3 percentage points to 83.4%.
United transported 48.7 million passengers, up 5.4% from the prior-year period. Domestic load factor declined 0.6 points to 83.5%, but the international load factor climbed 1.2 points to 83.2%. The airline also operated the 10 highest-volume passenger days in its history during June.
UAL Faces a Sharp Increase in Fuel ExpenseOperating expenses rose 19.2% to $16.58 billion, outpacing revenue growth. Aircraft fuel expense surged 84.1% to $5.11 billion as the average fuel price increased 79.4% to $4.19 per gallon. Fuel consumption rose 2.7%.
Cost per available seat mile increased 15.2% to 18.99 cents. CASM-ex, which excludes fuel, profit sharing, special items and third-party business expenses, rose 6.1% to 13.12 cents. Salaries and related costs increased 6.2%, while distribution expenses climbed 32.3%.
United Airlines Sees Profitability ContractAdjusted operating income fell 46.3% to $951 million, while the adjusted operating margin narrowed 6.2 percentage points to 5.4%. Adjusted pre-tax income declined 49.5% to $843 million, and the adjusted pre-tax margin contracted to 4.8% from 11%.
Adjusted net income decreased 48.7% to $649 million. On a reported basis, net income fell 17.3% to $805 million, while diluted earnings declined to $2.46 per share from $2.97. The difference reflected special credits, including gains from aircraft sale-leaseback transactions.
UAL Generates Cash and Builds LiquidityOperating cash flow totaled $1.61 billion during the quarter, while free cash flow came in at $322 million. Adjusted capital expenditures were $1.45 billion, reflecting continued spending on fleet and customer-facing investments.
Available liquidity ended the quarter at $19.6 billion. Cash and cash equivalents totaled $10.17 billion, while short-term investments were $6.47 billion. Debt, finance lease obligations and other financial liabilities stood at $26.46 billion, and trailing-12-month net leverage was 2.2 times.
United Airlines Raises Its Full-Year OutlookUnited now expects adjusted earnings of $9-$11 per share for 2026. For the third quarter, adjusted earnings are projected between $2.50 and $3.50 per share, based on an assumed all-in fuel price of approximately $3.69 per gallon.
Management expects third- and fourth-quarter TRASM growth to exceed the second quarter’s 12.1% increase. The airline anticipates recovering 80%-90% of the fuel-price increase in the third quarter and all of it by the fourth quarter. Adjusted capital expenditures are forecast at approximately $7.5 billion for 2026.
UAL Expands Its Fleet and Customer InvestmentsUnited expects its mainline fleet to reach 1,173 aircraft by year-end, up from 1,122 at the end of the second quarter. The plan includes 323 Boeing 737 MAX aircraft, 100 Boeing 787s and 88 Airbus A321neo or XLR aircraft. Regional aircraft are expected to total 442.
The airline had installed Starlink on more than 450 aircraft and expects nearly 1,000 installations by year-end. It also plans to introduce its first Airbus A321XLR into domestic service in the fall, followed by international deployment early next year.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.74% due to these changes.
VGM ScoresCurrently, United has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, United has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerUnited is part of the Zacks Transportation - Airline industry. Over the past month, Delta Air Lines (DAL - Free Report) , a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended June 2026 more than a month ago.
Delta reported revenues of $17.67 billion in the last reported quarter, representing a year-over-year change of +6.1%. EPS of $1.56 for the same period compares with $2.10 a year ago.
Delta is expected to post earnings of $2.19 per share for the current quarter, representing a year-over-year change of +28.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Delta. Also, the stock has a VGM Score of B.
Oil prices have fallen for a second straight session, extending losses after Treasury Secretary Scott Bessent‘s recent comments and other market developments helped reinforce the view that inflation pressures may continue to ease.
While the decline has weighed on oil producers and the United States Oil Fund (NYSE:USO), it may also be reshaping the broader investment landscape. USO is down over 9% over the past five days.
• United States Oil Fund shares are experiencing downward pressure. Why is USO stock retreating?
The “Inflation Premium” is FadingFor much of the past few years, elevated crude prices carried what investors often call an “inflation premium” — the expectation that expensive energy would keep inflation higher by raising fuel, transportation and manufacturing costs.
As that premium fades, the beneficiaries may extend well beyond companies that consume large amounts of oil. Lower crude prices could support consumer spending, improve corporate margins and strengthen the case for lower interest rates, creating a more favorable backdrop for risk assets.
Airlines, Retailers and Transport Companies Stand to GainThe most immediate beneficiaries are businesses with costs are closely tied to fuel prices.
The benefits extend beyond aviation.
Trucking companies, railroads and logistics providers could also see lower operating costs if diesel prices continue to ease. Meanwhile, consumers spending less at the gas pump may have more disposable income, potentially benefiting retailers, restaurants and other consumer discretionary businesses.
Lower Inflation Could also Support Growth StocksThe impact of less expensive oil does not stop with operating costs.
Lower energy prices can help cool one of the economy’s most visible sources of inflation, reducing pressure on policymakers to keep interest rates elevated. That environment has historically been supportive for rate-sensitive sectors, particularly technology and other high-growth companies whose valuations tend to benefit when borrowing costs are expected to remain lower.
The contrast is most evident in the energy sector itself. Oil producers and oilfield service companies generally face pressure when crude prices weaken, particularly if lower prices persist. But for the broader market, cheaper oil is often viewed as a tailwind rather than a warning sign.
That helps explain why oil has retreated even as equity markets continue pushing higher. If crude has indeed lost its inflation premium, investors may find that the biggest winners are not energy stocks at all — but airlines, transportation companies, retailers and the growth names that have been leading the market higher.
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United Airlines (NASDAQ:UAL | UAL Price Prediction) CEO Scott Kirby’s dual merger gambit is over before it ever really began. Per Wall Street Journal reporting in late July, Kirby first approached Delta Air Lines (NYSE:DAL) CEO Ed Bastian about a merger; Delta conducted preliminary due diligence but both sides moved on. Kirby then pursued a merger with American Airlines (NASDAQ:AAL), which American CEO Robert Isom publicly rejected as “a non-starter” and “anti-competitive.” The market shrugged, then recovered: United shares closed at $128.39 on August 3, up 6.5% on the week and 51.8% over the past year.
Why the Rejections Actually Make Sense Delta is executing from a fortress. Bastian told investors that “Delta’s brand and industry position are stronger than ever” after delivering $1.4 billion in pre-tax profit and affirming full-year 2026 adjusted EPS of $6.50 to $7.50. American is a different story: shareholders’ equity of negative $3.972 billion, $36.5 billion in total debt, and Q3 2026 loss guidance of ($0.70) to ($0.10). Either tie-up would face brutal antitrust scrutiny: a combined carrier would control roughly 40% of U.S. domestic capacity.
What Kirby Can Actually Do Next The organic case is already working. United posted Q2 2026 adjusted EPS of $1.99, versus a $1.85 consensus, on $17.67 billion in revenue, up 16.0% year over year, and raised full-year adjusted EPS guidance to $9.00 to $11.00. Premium revenue climbed 16%, cargo 23%, and contracted business 27%. Kirby said: “United is built to thrive in every environment. … Our network expansions, investment in Starlink, and innovations such as Relax Row are giving customers new reasons to choose United.”
Realistic paths forward:
Deeper joint ventures. Deepening alliances with ANA, Lufthansa, and Air Canada offers the scale economics of a merger without the antitrust risk. Asset picking. Grabbing gates and slots freed by Spirit Air’s collapse extends United’s hub grip without a headline transaction. Premium organic buildout. The A321XLR, 787-9 Elevated Polaris Studio, and fleet-wide Starlink by 2027 underpin the “two global premium carriers” thesis. Balance sheet. Management is targeting an investment-grade credit rating in 2026, cushioning $26.5 billion of debt and financial liabilities against fuel volatility. WTI crude already swung from $60.04 in January to $102.13 in May before easing to $84.81 in June. The Long Game on American American’s stock is up 45.4% over the past year but still down 55.7% over 10 years. If negative equity persists and losses recur, Isom’s “non-starter” may age poorly. Kirby’s own Q1 line still applies: “Moments of uncertainty for the airline industry may also create opportunity for United.” Rejected, not retreating.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Delta Air Lines didn't make the cut. Grab the names FREE today.
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A Boeing 777X flying at the 2025 Dubai Airshow. GIUSEPPE CACACE/AFP via Getty Images Airlines are still willing to bet on Boeing.
The American planemaker showed signs of rebuilding airlines' trust at the Farnborough Airshow — the latest indication that CEO Kelly Ortberg's turnaround efforts are helping Boeing recover from years of safety concerns, quality issues, and delivery delays that damaged its reputation.
Ortberg was highly visible at the leading show. He took a front-row seat for an order signing and spoke at a media reception — a reflection of the leadership approach he adopted when he took the helm two years ago, including moving to Seattle to be closer to the factory floors and take a more hands-on approach than prior chiefs.
Augusto Viansson Ponte, a director at Alton Aviation Consultancy, told Business Insider that Ortberg's visibility in Farnborough was "a good sign."
"I think what was very interesting was quite a bit of Boeing [orders], which means people have faith," he added. "They were in a pretty bad spot a while ago, and I think that there is confidence from the operators in the fact that they will resolve that."
Boeing edged out Airbus in the orders tally at Farnborough, its first time taking the crown at a major air show in four years. It announced deals for 173 aircraft, compared to 154 from its European rival.
Airbus has dominated the Farnborough and Paris airshows in recent years as Boeing has contended with the fallout of the 2024 Max crisis and production issues with its 787 and yet-to-be-certified 777X.
In Paris last year, Boeing chose not to announce any orders in the wake of the fatal crash of Air India Flight 171, while Airbus announced 142.
"As I continue meeting with our customers, suppliers, and partners, they all say the same thing: a different, better Boeing is showing up," Ortberg said in a memo to employees on Tuesday.
"Thank you for doing your part to get us back to the Boeing we all know we can be — let's keep it going," he added, saying that there's more work to do and that "two quarters don't make a year."
Boeing isn't out of the woods yet.
It's still losing money: the company reported a $428 million loss in the second quarter, as its 24.6 billion in revenue was weighed down by a $280 million charge tied to the Air Force One replacement program.
The company's share price is down about 8% over the past year. Still, there are signs of recovery, with revenue rising and commercial deliveries increasing. Its stock rose about 5% on Tuesday.
"We believe investors appreciate the steady stair-step progress that Boeing is making on deliveries, production increases, and [free cash flow] generation," Ken Herbert, aerospace and defense analyst at RBC Capital Markets, wrote in a note.
And Deutsche Bank analysts, who rated the stock a hold, said, "Boeing is continuing to demonstrate improvement in executing against the strong demand environment."
The order book lacked big-name airlinesThis year's show lacked the excitement seen at previous editions.
Qatar Airways canceled its presence after the country's former Emir died earlier this month, and Etihad Airways' CEO withdrew from planned engagements.
While the aircraft order tally was similar to the most recent Farnborough Airshow in 2024, the order book lacked big names.
Airbus had a presence at the airshow, with a United A321XLR and an Emirates A350 on display. Boeing did not bring any commercial planes. Taylor Rains/Business Insider Instead, the largest order came from a lessor, SMBC Aviation, which ordered 100 airplanes from both Boeing and Airbus.
"Probably because the airlines have ordered a lot and swallowed a lot in the past," Viansson Ponte said. "They put their growth plans and their orders in terms of, this is what we want to do, we know when those deliveries are. Now it's the turn of the lessors to come in with the flexibility," he added.
Riyadh Air, the Saudi startup, announced deals for 28 Boeing 787s and six Airbus A350-1000s, but has already ordered much of what it needs in the past two years.
The Iran War has led to a decline in passenger demand for Middle Eastern airlines and may make them wary about buying new airplanes right now.
The order book is a sign of Boeing's comeback from dire problems.
In early 2024, a door plug blew out of an Alaska Airlines 737 Max mid-flight. Investigators found the airplane had left Boeing's factory missing key bolts designed to keep it in place. This led to an overhaul of its production processes and quality-control checks, as airline customers criticized the planemaker. Kelly Ortberg became CEO as his predecessor stepped down in the wake of the crisis.
Planemakers are also still contending with supply-chain constraints and have enormous backlogs to work through.
Perhaps the biggest headline of Farnborough came from the 777X's biggest customer. Emirates President Tim Clark told The Telegraph that the airline is rejecting the first 10 777X jets built for it.
The airplane type was supposed to enter service in 2020, but now the first is expected to be delivered in 2027.
Its long path to certification has led to some design changes, so Clark believes the first batch of 777X planes would require too much work to bring them up to an acceptable standard.
"As far as we're concerned, what they do with them is up to them," Clark said. "Heinz would be interested — baked bean cans."
During its second-quarter earnings call on Tuesday, Ortberg said he wouldn't discuss contract changes publicly.
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Pete Syme You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Pete Syme is an aviation reporter for Business Insider, based in London.He writes about all things related to the industry, such as flight diversions, aviation safety, airline updates, travel tips, plane tours, and aviation leaders.Pete has appeared on BBC News to discuss a Heathrow Airport closure and on Sky News to talk about Boeing.Before joining Business Insider in 2022, he graduated with an MA in Newspaper Journalism from City, University of London. While getting his BA in English from the University of Exeter, he was the award-winning deputy editor of the student newspaper, Exeposé.You can get in touch by emailing [email protected] or via Signal @syme.99.
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Key Takeaways United Airlines posted an earnings beat, but higher fuel costs drove a 48.6% year-over-year decline.UAL expects 2026 adjusted EPS of $9-$11 as revenue per seat mile growth is projected to improve.United Airlines has $19.6B in liquidity, but $26.46B in financial liabilities adds balance-sheet risk. United Airlines Holdings (UAL - Free Report) ) has a balanced investment setup after a strong revenue quarter. Demand, premium revenue and loyalty trends support the recovery case, but fuel and labor costs are pressuring margins.
The stock’s appeal depends on whether United Airlines can turn revenue strength into steadier earnings expansion. Rising estimates and liquidity help, while execution risk keeps the case from looking clear-cut.
UAL’s Earnings Beat Masks Profit PressureUnited Airlines reported second-quarter 2026 adjusted earnings of $1.99 per share, above the Zacks Consensus Estimate of $1.92. Still, earnings declined 48.6% year over year as higher fuel costs weighed on profitability.
Adjusted operating income fell 46.3% to $951 million. Adjusted operating margin narrowed 6.2 percentage points to 5.4%, showing that the earnings beat did not erase the pressure from cost inflation.
United Airlines’ Outlook Supports RecoveryUnited Airlines now expects 2026 adjusted earnings of $9-$11 per share. For the third quarter, adjusted earnings are projected to be in the range of $2.50-$3.50 per share, based on an assumed all-in fuel price of about $3.69 per gallon.
The Zacks Consensus Estimate for current-year earnings has increased 4.7% in the past four weeks. Management also expects third- and fourth-quarter total revenue per available seat mile growth to exceed the second quarter’s 12.1% increase.
UAL’s Valuation Offers a Mixed SignalUAL trades at 0.54X forward 12-month price-to-sales, close to 0.53X for the airline sub-industry. The multiple is also above United Airlines' five-year median of 0.33X, limiting the argument that the stock is uniformly cheap.
The forward price-to-earnings ratio of 9.4 and PEG ratio of 0.9 add support to the valuation case. Delta Air Lines (DAL - Free Report) and American Airlines Group (AAL - Free Report) remain useful peer comparisons for investors weighing airline demand, pricing and cost exposure across the group. Delta Air Lines operates a broad global network, while American Airlines Group is the parent of American Airlines and trades under AAL.
United Airlines Has Limited Target UpsideUnited Airlines' $131 price target compares with the reported share price of $120.57. That implies positive but moderate appreciation potential from the cited level.
The modest spread puts more weight on execution. Continued earnings delivery, fare realization and fuel-cost recovery are central to whether UAL becomes more attractive from here.
UAL’s Balance Sheet Adds Flexibility and RiskUnited Airlines ended the second quarter with $19.6 billion of available liquidity and trailing 12-month net leverage of 2.2 times. That liquidity gives the airline room to fund fleet and customer-facing investments while managing cyclical swings.
Debt remains part of the risk profile. Debt, finance lease obligations and other financial liabilities stood at $26.46 billion, making balance-sheet discipline important as United Airlines works through fuel volatility and capital spending needs.
United Airlines’ Scores Favor Selective PatienceThe bottom line: United Airlines has revenue momentum, a reasonable valuation and improving estimates, but margin compression keeps the investment case mixed. Fuel, labor and execution risks still matter.
The stock currently carries a Zacks Rank #3 (Hold), which points to patience rather than an aggressive near-term buying stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company's Value Score of A supports the valuation case, while the Growth Score of C, the Momentum Score of D and a VGM Score of B point to attractive features, not a decisive signal.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is United Airlines (UAL - Free Report) . UAL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.98. This compares to its industry's average Forward P/E of 10.43. Over the past year, UAL's Forward P/E has been as high as 9.45 and as low as 4.45, with a median of 7.52.
Another notable valuation metric for UAL is its P/B ratio of 2.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.01. UAL's P/B has been as high as 2.95 and as low as 1.45, with a median of 2.19, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UAL has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.64.
Finally, our model also underscores that UAL has a P/CF ratio of 5.58. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UAL's current P/CF looks attractive when compared to its industry's average P/CF of 6.45. Over the past year, UAL's P/CF has been as high as 6.11 and as low as 2.84, with a median of 4.68.
These are only a few of the key metrics included in United Airlines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, UAL looks like an impressive value stock at the moment.
United Chief Executive Scott Kirby called Delta's CEO to discuss a potential deal but the talks didn't progress, according to people familiar with the matter.
Investors were bracing themselves for what airlines like Delta Air Lines (DAL -0.69%) and United Airlines (UAL -0.17%) might report for the second quarter in light of the surge in jet fuel prices. However, although rising fuel costs are definitely having an impact on both airlines, Delta affirmed its forecast, and United Airlines actually increased its earnings outlook. Does this make both airline stocks a buy?
Rising jet fuel costs It's no secret that hostilities in the Middle East led to sharply higher crude oil prices throughout the second quarter. The shortage of crude oil and jet fuel flowing through the Strait of Hormuz not only increased crude oil prices but also sent jet fuel crack spreads soaring. The end result was a major increase in jet fuel costs for airlines in the quarter.
Image source: Getty Images.
As you can see below, the overwhelming majority of the increase in operating expenses in the second quarter was due to higher fuel costs, and in both cases, year-over-year operating income deteriorated.
Year-over-Year Change Operating Revenue Change
Fuel Cost Change
Total Operating Expenses Change
Operating Income Change
United Airlines
$2,436 million
$2,335 million
$2,665 million
($229 million)
Delta Air Lines*
$2,159 million
$1,913 million
$2,659 million
($501 million)
Data source: Company presentations. *Adjusted figures
Both stocks look like excellent values Rising fuel costs do matter, and both companies' management teams told the market they plan for significantly increased fuel costs in 2026.
Today's Change
(
-0.69
%) $
-0.59
Current Price
$
84.05
Delta Air Lines expects its fuel costs to increase by $4 billion in 2026 compared to 2025, and United Airlines expects its fuel costs to be $6 billion higher than its original estimate going into the year.
Today's Change
(
-0.17
%) $
-0.20
Current Price
$
117.50
However, before getting despondent over rising fuel costs eating into profitability, it's important to note a few things:
Both companies are demonstrating the ability to offset rising costs by raising prices, cutting unprofitable capacity where necessary, and leaning into their premium cabin offerings, including pricing and other services. Although crude oil and jet fuel prices rose in the second quarter, it's far from clear that they will remain at the same elevated level. Even though rising costs reduced earnings for both airlines, they remain highly profitable, and both companies provided outlooks that placed their stocks firmly in value territory. Fleshing out the last point, Delta Air Lines continues to expect full-year earnings per share (EPS) of $6.50 to $7.50, and United Airlines actually raised its full-year EPS estimate range to $9 to $11 from a previous range of $7 to $11.
To put these figures into context, here's what these guidance ranges mean in terms of valuation based on their price-to-earning (P/E) ratios:
Company
2026 Price to Earnings at Low End of EPS Range
2026 Price to Earnings at High End of EPS Range
United Airlines
12.9 times
10.6 times
Delta Air Lines
13 times
11.3 times
Data source: Company presentations. The author's analysis is based on prices on July 17.
In other words, you are going to have to believe that both companies will miss the low end of their projections for them not to look like a good value based on 2026 earnings estimates. Moreover, note that the forecasts already have significantly higher fuel costs baked in.
Are they a buy? In the end, the debate over the stocks comes down to the core question of whether the airline industry is still the same old cyclical industry characterized by violent boom-and-bust periods. If you believe it is, then a low price-to-earnings (P/E) ratio won't appease you, because many fortunes have been lost buying cyclical stocks at low P/Es just as their earnings peaked and then collapsed.
However, if you share my belief that Delta and United have diversified their revenue streams away from overreliance on main cabin ticketing and toward premium cabin ticketing, auxiliary services, co-branded credit card remuneration, and loyalty programs, then there's a strong case for buying their stocks. Not least because they are being stress-tested right now by rising fuel costs and appear to be handling a difficult scenario well enough to at least maintain their forecasts.
A United Airlines flight lands in front of the U.S. Capitol at Ronald Reagan Washington National Airport in Arlington, Virginia, U.S., November 7, 2025. REUTERS/Nathan Howard Purchase Licensing Rights, opens new tab
CompaniesJuly 21 (Reuters) - A union representing over 11,000 mechanics and other employees at United Airlines (UAL.O), opens new tab secured an in-principle agreement for a new contract following two years of bargaining, it said on Tuesday.
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The new contract agreed by the Teamsters United Airlines union will provide a $5,000 signing-on bonus per member, totaling $54 million.
The union said it "fully recommends ratification of this agreement."
The contract promises "industry-leading wage increases" and brings down "wage progression to top-of-scale pay" to five years, from the current eight-year period.
Union members will have the opportunity to review the full contract and vote for ratification once the details and language of the contract are finalised.
Reporting by Nandan Mandayam in Bengaluru; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles., opens new tab
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United Airlines flights in the United States were delayed Saturday morning after a tech outage. Mondadori Portfolio/Getty Images Some United Airlines flights across the US, from New York to San Francisco, were delayed on Saturday due to a technology outage.
United Airlines passengers said on social media that the issue affected operations at several major airports, including Washington Dulles International Airport in Virginia and Newark Liberty International Airport in New Jersey. Some passengers said they faced delays, while others said they encountered issues checking in, boarding, and checking their bags.
Down Detector, a site that tracks status updates and outages, showed that passengers began reporting the issues before 7:40 a.m. on Saturday. By 8:23 a.m., Down Detector had recorded more than 430 reports.
A spokesperson for United Airlines said the issue has since been resolved.
"Our teams are getting our operations back to normal after a technology outage affected contact centers and check-in processes earlier today," the spokesperson told Business Insider. "We encourage customers to check their flight status on the United app as they get ready to travel today."
The spokesperson said the outage struck the airline's reservation system. As a result, the company couldn't process check-ins or process customer tickets. The spokesperson said the outage did not affect flights that were already airborne or had left the gate.
United Airlines was among several airlines that faced major disruptions after widespread tech outages related to a CrowdStrike update two years ago. At the time, the airline cautioned pilots that they may be unable to communicate with ground services. It was forced to cancel thousands of flights as a result.
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Airline stocks’ sensitivity to jet fuel prices is tested whenever fuel spikes. In 2026, fuel costs are testing every airline's balance sheet. This quarter, both Delta Air Lines NYSE: DAL and United Airlines NYSE: UAL passed the test on paper. But they passed it in very different ways—and the difference matters more than the headline numbers.
Delta's adjusted fuel price rose to $3.93 a gallon, up 75% year over year. United's was worse: $4.19 a gallon, up nearly 80%. Neither number is small. United took a significant year-over-year hit to adjusted earnings per share (EPS) and now expects almost $6 billion in incremental fuel expense for full-year 2026, up from its original budget.
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That's real data that investors shouldn’t dismiss as quarterly noise. The question becomes which airline has the structural tools to keep passing that cost through to ticket prices without losing the traveler?
How Higher Jet Fuel Costs Are Impacting Delta and UnitedAs noted above, United's adjusted EPS fell 48.6% year-over-year, from $3.87 to $1.99. Delta's adjusted EPS fell 26%, from $2.12 to $1.56. The same pattern was evident in margin compression. United's adjusted pre-tax margin fell just over six points, from 11% to 4.8%. Delta fell four points, from 11.7% to 7.7%. Delta's earnings base shrank by a smaller proportion, even though both carriers faced comparable fuel inflation.
To be fair, not all of the weakness in United’s EPS and margin numbers was due to fuel costs. The company absorbed $184 million in one-time labor contract charges this quarter, versus $561 million a year ago.
Delta's Fuel Hedging Strategy Vs. United's Liquidity ApproachAt the crux of the "built for higher fuel costs" question is the strategy of fuel hedging. Most U.S. major airlines walked away from large-scale fuel hedging years ago. Unlike European carriers such as Air France-KLM OTCMKTS: AFLYY or Ryanair NASDAQ: RYAAY, which routinely lock in 70%–90% of fuel needs through derivative contracts extending a year or more out, U.S. legacy carriers have largely stopped using the strategy.
Delta Air Lines Today
DAL
Delta Air Lines
$84.15 -2.55 (-2.94%)
As of 07/17/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$50.44▼
$95.68Dividend Yield1.02%
P/E Ratio13.96
Price Target$100.40
Industry reporting has pegged the impact of that exposure, and it explains the problem well. A 1-cent move in jet fuel can cost a major U.S. carrier roughly $50 million a year, with no derivative book absorbing the blow.
Delta is the partial exception because it owns Monroe Energy, a Trainer, Pennsylvania refinery that supplies a meaningful share of its jet fuel needs. Third-party refinery sales hit $2.09 billion this quarter, up 83% year-over-year, and Delta credits the refinery with an 11-cents-per-gallon benefit this quarter (including a 5-cent hit from a temporary outage).
Delta's earnings report showed $301 million in mark-to-market hedge adjustments and settlements this quarter alone. That's not the 80%+ coverage ratios you see at Ryanair or Air France-KLM, but it's meaningfully more structural protection than a pure spot-market buyer.
United Airlines Today
UAL
United Airlines
$115.41 -3.40 (-2.86%)
As of 07/17/2026 04:00 PM Eastern
52-Week Range$82.42▼
$138.77P/E Ratio10.80
Price Target$154.26
United's approach is based on liquidity.
Management raised $3.7 billion in new liquidity through private bank transactions this quarter, explicitly described as "low-cost insurance" against a further oil spike.
Per sources, United has also secured select fuel supply contracts that limit some exposure—But these reportedly fall well short of the large-scale, derivative-based hedging programs that European carriers or Delta's refinery model provide.
Can Delta and United Pass Higher Fuel Costs to Travelers?Rising jet fuel costs only matter if passengers aren’t willing to pay. So far, that hasn’t been the case. United grew capacity 3.5% year-over-year while still pushing adjusted unit revenue (TRASM) up 12.1%. Delta grew capacity roughly 1% while pushing TRASM up 12.4%.
Delta is generating comparable unit-revenue growth on a fraction of United's capacity growth—a tighter, lower-risk version of the same pricing story. United is growing into demand harder, which raises the ceiling if travel stays strong, and the downside if it doesn't.
Why Travel Demand Remains Strong Despite Higher AirfaresBoth United and Delta cited increases in premium and economy/main-cabin demand. United's Basic Economy revenue rose 11%, and its overall economy-cabin unit revenue rose 12%. That was the airline’s second consecutive quarter of positive economy growth after a long soft patch. Delta's main cabin ticket revenue rose 8%, also its second straight quarter of positive main-cabin growth, while premium ticket revenue rose 17%.
At first glance, that pattern looks contradictory. The broader travel narrative through 2025 and into 2026 has been a "K-shaped" split: strong premium demand alongside a documented pullback in budget-conscious leisure travel, with ultra-low-cost carriers absorbing the brunt of that softness. If the price-sensitive traveler is genuinely pulling back across the industry, why are Delta and United both showing their cheapest cabins turning positive at the same time?
It may come down to a share shift rather than a demand surge. Neither Delta nor United built its brand around the price-sensitive flyer, but both have spent recent years building lower-tier fare products. United’s Basic Economy and Delta's comparable main-cabin fares are designed to compete for that traveler when needed.
As ultra-low-cost carriers cut capacity or struggle with their own economics, some of that traffic doesn't vanish. It shifts, "below the line," to a legacy carrier's cheapest available seat. That would reconcile positive economy-cabin growth at Delta and United with a well-documented pullback at the dedicated budget carriers.
Which Airline Is Better Positioned for Higher Fuel Costs?Warren Buffett has been one of the most outspoken critics of airline stocks. Buffett’s argument comes down to high operating costs outweighing travel demand, which can be fickle. But every rule has occasional exceptions. In 2026, the airline industry is having a moment where, for now, math is working in its favor.
That doesn’t mean this time is different. It just means that there’s an opportunity for growth despite higher jet fuel prices. That is, as long as travelers are willing to absorb the higher costs.
If stock price growth is the only consideration, both UAL and DAL are attractive targets. In fact, an argument could be made that United has more short-term upside. But for an investor looking for long-term growth, Delta’s hedging strategy should do a better job of protecting its margins. Plus, DAL's dividend increased about 15% (from $0.1875 to $0.2150 per share), and will be paid on July 30, 2026, to shareholders of record as of July 9.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of UAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Delta Air Lines (DAL - Free Report) ) and United Airlines (UAL - Free Report) ) have both delivered better-than-expected Q2 results, demonstrating that demand for premium, international, and corporate travel remains resilient despite significantly higher fuel costs.
Both carriers exceeded Wall Street's earnings expectations and expressed confidence in the second half of the year. However, they took slightly different approaches to guidance.
Delta reaffirmed its full-year outlook despite the challenging fuel environment, while United became even more optimistic by raising its earnings forecast.
For those looking to capitalize on the continued strength in the airline industry, the question is whether Delta's operational consistency or United's accelerating earnings momentum makes for the better investment.
Delta Delivered Another Strong QuarterLast Friday, Delta reported Q2 adjusted EPS of $1.56, topping expectations of $1.51 despite an expected dip from last year's record Q2 profit of $2.10 per share.
This came on a quarterly peak in revenue at $17.66 billion, which increased 14% year over year but slightly missed estimates of $17.76 billion. Premium travel, corporate demand, and international routes remained key growth drivers.
The quarter was particularly impressive considering Delta absorbed the highest quarterly fuel expense in company history, with fuel costs surging roughly 77% from a year ago due to higher oil prices. Despite the headwind, Delta generated approximately $1.4 billion in adjusted pre-tax income while maintaining an industry-leading balance sheet.
Perhaps most encouraging was management's outlook. Delta reaffirmed its full-year adjusted EPS guidance range of $6.50-$7.50 while maintaining expectations for $3 billion-$4 billion in free cash flow.
Management also projected continued momentum during the September quarter, expecting double-digit operating margins as premium demand remains healthy. Delta further rewarded shareholders by announcing a 15% dividend increase.
Image Source: Zacks Investment Research
United Raises the BarReporting Q2 results this week, United Airlines posted the more bullish earnings report.
Adjusted EPS reached $1.99, comfortably ahead of expectations of $1.92 despite a dip from a quarterly peak of $3.87 per share a year ago. Still, United posted a new record in quarterly revenue as well, at $17.67 billion, which was up 16% YoY but very narrowly missed estimates.
Strong growth across premium cabins, loyalty programs, cargo operations, and international travel helped offset sharply higher fuel expenses. The company highlighted record passenger volumes while continuing to expand its global network and premium offerings.
Most impressive, United raised the low end of its full-year adjusted EPS guidance to $9.00-$11.00, up from its prior outlook of $7.00-$11.00.
Notably, United acknowledged that fuel prices remain volatile but believes stronger pricing and revenue trends should allow the airline to recover most of those higher costs over the remainder of the year.
Image Source: Zacks Investment Research
Stock Performance & Valuation Comparison (P/E)Delighting investors is that both stocks have impressively outperformed the benchmark S&P 500 in the last three years and even the Nasdaq, although United’s gains of more than 120% have noticeably topped Delta’s 85%.
Image Source: Zacks Investment Research
Despite their strong rallies, both airlines continue to trade at valuations that offer steep discounts to the broader market.
United typically commands the lower forward earnings multiple, reflecting its more cyclical earnings profile and greater sensitivity to economic conditions.
Delta generally trades at a modest premium to United because investors have historically assigned higher multiples to its stronger balance sheet, more consistent profitability, premium revenue mix, and industry-leading operational execution.
Still, after a very extensive rally and more explosive earnings growth, United stock certainly stands out with a forward P/E of 11X compared to Delta’s 13X.
Image Source: Zacks Investment Research
Delta’s Dividend Levels The Playing FieldIncome investors have a clear favorite.
Delta currently pays a dividend yielding roughly 1%, and management reinforced its confidence in future cash generation by announcing the 15% dividend increase following its Q2 report.
United, meanwhile, does not currently pay a dividend, choosing to prioritize debt reduction, aircraft investments, and strengthening its balance sheet following the pandemic.
While United may offer greater earnings leverage during favorable airline cycles, Delta remains the more appealing option for investors seeking a combination of capital appreciation and residual income.
Image Source: Zacks Investment Research
Bottom LineDelta and United delivered impressive Q2 reports that reinforced the strength of the airline industry's recovery despite elevated fuel costs.
For investors seeking a steadier long-term compounder with a dividend, industry-leading margins, and more predictable cash flows, Delta Air Lines appears to be the more balanced investment.
Those with a higher risk tolerance looking for stronger earnings acceleration may prefer United Airlines, particularly after management raised its full-year profit outlook.
That said, both stocks currently land a Zacks Rank #3 (Hold), although United is likely to reattain a buy rating as earnings estimate revisions should move higher in the coming weeks.
United Airlines saw strong demand from travelers in the second quarter despite higher ticket prices caused by surges in the price of fuel, executives said Thursday (July 16) during an earnings call.
“In the quarter, United carried 10 of our highest passenger days in company history, with the highest being over 640,000 customers carried on June 18,” United Airlines President Brett J. Hart said during the call.
Mike Leskinen, executive vice president and chief financial officer at United, said during the call: “United has not seen a measurable demand impact based on the higher fares. In fact, if you zoom out to consider price inflation for travel over the last 10 and 20 years, airfare stands out as a tremendous value. Our customers increasingly desire a better travel experience, and we believe they will continue to pay reasonable prices for it.”
The airline saw growing demand across categories. The total revenue per available seat mile (TRASM) was up 12.1% year over year, indicating strong demand for its products, Andrew Nocella, executive vice president and chief commercial officer at United Airlines, said during the call.
“We observed minimal to no impact on demand from higher price points, a trend we see continuing,” Nocella said.
In terms of passenger revenue per available seat mile (PRASM), domestic was up 12.2% year over year and international was up 12.0%, according to a Thursday news release.
PRASM was up 11.6% year over year in the premium category and 11.5% in the main cabin, Nocella said during the call.
“This is the second quarter in a row where we’ve seen main cabin PRASMs positive after years of below-average performance at an industry level.”
Contracted business revenues were up 27% year over year, with the technology, financial services and professional services sectors leading the way, Nocella said.
“These same positive business demand trends continued into early July and we expect to continue for the remainder of the year,” Nocella said.
Overall, United Airlines CEO Scott Kirby said during the call, “Demand remains robust as we expect both 3Q and 4Q TRASM to grow faster than 2Q’s 12%.”
United Airlines Holdings, Inc. (UAL) Q2 2026 Earnings Call July 16, 2026 10:30 AM EDT
Company Participants
Kristina Munoz - Managing Director of Investor Relations
Scott Kirby - CEO & Director
Brett Hart - President
Andrew Nocella - Executive VP & Chief Commercial Officer
Michael Leskinen - Executive VP & CFO
Toby Enqvist - Executive VP & COO
Conference Call Participants
Catherine O'Brien - Goldman Sachs Group, Inc., Research Division
Andrew Didora - BofA Securities, Research Division
Sheila Kahyaoglu - Jefferies LLC, Research Division
Conor Cunningham - Melius Research LLC
Jamie Baker - JPMorgan Chase & Co, Research Division
Thomas Fitzgerald - TD Cowen, Research Division
Ravi Shanker - Morgan Stanley, Research Division
Scott Group - Wolfe Research, LLC
John Godyn - Citigroup Inc., Research Division
Michael Linenberg - Deutsche Bank AG, Research Division
Brandon Oglenski - Barclays Bank PLC, Research Division
Duane Pfennigwerth - Evercore ISI Institutional Equities, Research Division
David Vernon - Bernstein Institutional Services LLC, Research Division
Savanthi Syth - Raymond James & Associates, Inc., Research Division
Christian Wetherbee - Wells Fargo Securities, LLC, Research Division
Alison Sider
Leslie Josephs
Presentation
Operator
Good morning, and welcome to United Airlines Holdings Earnings Conference Call for the Second Quarter 2026. My name is Regina, and I will be your conference facilitator today. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed or rebroadcast without the company's permission. Your participation implies your consent to our recording of this call. If you do not agree with these terms, simply drop off the line.
I will now turn the presentation over to your host for today's call, Kristina Edwards, Managing Director of Investor Relations. Please go ahead.
Kristina Munoz
Managing Director of Investor Relations
Thank you, Regina. Good morning, everyone, and welcome to United's Second Quarter 2026 Earnings Conference Call. Yesterday, we issued our earnings release, which is available on our website at ir.united.com. Information in
Key Takeaways UAL's Q2 adjusted EPS fell 48.6% to $1.99, while revenues rose 16% to $17.67 billion.Passenger revenues climbed 16.4% as premium, loyalty and contracted business demand strengthened.UAL raised its 2026 adjusted EPS outlook to $9-$11 despite an 84.1% surge in fuel expense. United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.
UAL Benefits From Strong Passenger Revenue TrendsPassenger revenues increased 16.4% year over year to $16.10 billion. Domestic passenger revenues advanced 20.3%, while international passenger revenues rose 11.2%. Pacific revenues increased 18.7%, Europe gained 10.2% and Latin America improved 10.5%, partly offset by a 16.4% decline in the Middle East, India and Africa region.
Consolidated passenger revenue per available seat mile increased 12.5%, while yield rose 12.1%. Premium revenues grew 16%, Basic Economy revenues advanced 11% and loyalty revenues increased 11%. Contracted business revenues jumped 27%, reflecting robust close-in demand.
United Airlines Posts Better Traffic and Load FactorTraffic, measured in revenue passenger miles, increased 3.8%, while capacity rose 3.5%. With traffic growth slightly outpacing capacity expansion, the consolidated load factor improved 0.3 percentage points to 83.4%.
United transported 48.7 million passengers, up 5.4% from the prior-year period. Domestic load factor declined 0.6 points to 83.5%, but the international load factor climbed 1.2 points to 83.2%. The airline also operated the 10 highest-volume passenger days in its history during June.
UAL Faces a Sharp Increase in Fuel ExpenseOperating expenses rose 19.2% to $16.58 billion, outpacing revenue growth. Aircraft fuel expense surged 84.1% to $5.11 billion as the average fuel price increased 79.4% to $4.19 per gallon. Fuel consumption rose 2.7%.
Cost per available seat mile increased 15.2% to 18.99 cents. CASM-ex, which excludes fuel, profit sharing, special items and third-party business expenses, rose 6.1% to 13.12 cents. Salaries and related costs increased 6.2%, while distribution expenses climbed 32.3%.
United Airlines Sees Profitability ContractAdjusted operating income fell 46.3% to $951 million, while the adjusted operating margin narrowed 6.2 percentage points to 5.4%. Adjusted pre-tax income declined 49.5% to $843 million, and the adjusted pre-tax margin contracted to 4.8% from 11%.
Adjusted net income decreased 48.7% to $649 million. On a reported basis, net income fell 17.3% to $805 million, while diluted earnings declined to $2.46 per share from $2.97. The difference reflected special credits, including gains from aircraft sale-leaseback transactions.
UAL Generates Cash and Builds LiquidityOperating cash flow totaled $1.61 billion during the quarter, while free cash flow came in at $322 million. Adjusted capital expenditures were $1.45 billion, reflecting continued spending on fleet and customer-facing investments.
Available liquidity ended the quarter at $19.6 billion. Cash and cash equivalents totaled $10.17 billion, while short-term investments were $6.47 billion. Debt, finance lease obligations and other financial liabilities stood at $26.46 billion, and trailing-12-month net leverage was 2.2 times.
United Airlines Raises Its Full-Year OutlookUnited now expects adjusted earnings of $9-$11 per share for 2026. The Zacks Consensus Estimate of $10.68 for full-year earnings lies within the company's guided range. For the third quarter, adjusted earnings are projected between $2.50 and $3.50 per share, based on an assumed all-in fuel price of approximately $3.69 per gallon. The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.68.
Management expects third and fourth-quarter TRASM growth to exceed the second quarter’s 12.1% increase. The airline anticipates recovering 80%-90% of the fuel-price increase in the third quarter and all of it by the fourth quarter. Adjusted capital expenditures are forecast at approximately $7.5 billion for 2026.
UAL Expands Its Fleet and Customer Investments
United expects its mainline fleet to reach 1,173 aircraft by year-end, up from 1,122 at the end of the second quarter. The plan includes 323 Boeing 737 MAX aircraft, 100 Boeing 787s and 88 Airbus A321neo or XLR aircraft. Regional aircraft are expected to total 442.
The airline had installed Starlink on more than 450 aircraft and expects nearly 1,000 installations by year-end. It also plans to introduce its first Airbus A321XLR into domestic service in the fall, followed by international deployment early next year.
UAL’s Zacks Rank
Currently, UAL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (percentage-wise) from a year ago as sharply higher fuel costs pressured profitability.
Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.
Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.
United Airlines Holdings Inc (NASDAQ:UAL, XETRA:UAL1) shares fell about 2% after the carrier issued third quarter earnings guidance below Wall Street expectations, despite reporting second quarter results that topped analyst estimates and raising its full-year adjusted earnings outlook.
For the third quarter, United forecast adjusted earnings of $2.50 to $3.50 per share, with the midpoint of $3 falling below analysts' consensus estimate of approximately $3.60 per share.
The company raised its full-year adjusted earnings per share guidance to a range of $9 to $11.
United said it now expects nearly $6 billion in additional fuel costs for full-year 2026 compared with expectations at the start of the year.
Fuel expense rose $2.3 billion, or 84%, year over year in the second quarter. The company said it recovered about half of that increase during the quarter and expects to recover 80% to 90% in the third quarter and fully recover the increase by the fourth quarter.
The airline reported adjusted diluted earnings of $1.99 per share for the second quarter on total operating revenue of $17.67 billion. The results exceeded Wall Street expectations of adjusted earnings between $1.85 and $1.89 per share on revenue of about $17.62 billion.
Premium revenue increased 16% from a year earlier, while Basic Economy revenue and loyalty revenue each rose 11%. Cargo revenue climbed 23%, and contracted business revenue increased 27%.
The airline ended the quarter with $19.6 billion in available liquidity and total debt and finance lease obligations of $26.5 billion. During the quarter, it raised $3.7 billion in new liquidity and prepaid about $1 billion of higher-cost debt as it continues to target an investment-grade credit rating.
United CEO Scott Kirby said the company's investments in customer offerings helped drive demand despite higher fuel costs.
"Our results show why we have been investing in customer improvements throughout every cabin and winning brand-loyal customers," Kirby said in a statement.
"United is built to thrive in every environment, and when oil prices spiked in March, we quickly and decisively acted to adjust our schedules, while simultaneously doubling down on our customer investments."
Iran Ceasefire or Not, These 3 Companies Could WinUnited Airlines NASDAQ: UAL executives said the carrier’s second-quarter 2026 results showed strong demand, improving pricing and continued operational gains, even as a sharp increase in fuel prices pressured earnings and led the company to update its guidance approach.
Chief Executive Officer Scott Kirby said United’s second-quarter revenue rose 16%, which he said recovered “about half the increase in fuel price for the period.” He said the company had been on track to discuss year-over-year earnings growth before fuel prices rose sharply in the prior week.
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Sky Wars: United's Predator Play for American“We feel we owe it to investors to update our practice and provide guidance to reflect the most current fuel prices,” Kirby said. He added that the fuel price spike this month was equal to $1.12 of earnings per share. If fuel prices return to earlier-month levels, he said United expects to be above the high end of its guidance range.
Revenue Strength Broad-Based Across Network Chief Commercial Officer Andrew Nocella said total operating revenue rose 16% year over year to $17.7 billion. Passenger revenue per available seat mile, or PRASM, increased 12.1%, while load factors were up slightly, which he said indicated strong demand for United’s products.
3 Stocks Flashing Rare Buy Signals After the Market's Wildest MonthDomestic passenger revenue rose 20.3%, with domestic PRASM up 12.2%. International PRASM rose 12%, including a 14% increase in the Pacific region, 12.1% in the Atlantic and 10.7% in Latin America. Cargo revenue increased 22.6%, with Nocella saying most of the gains were yield-related rather than volume-related.
Loyalty revenue rose 11.3%. Nocella said MileagePlus program changes helped drive momentum in co-branded credit card accounts, spending, engagement and membership. New co-branded credit card accounts reached a second-quarter record, up 22%, while card spend rose 14% and MileagePlus enrollments increased 9%.
Premium revenue increased 16.4%, and premium PRASM rose 11.6%. PRASM for the Polaris and Premium Plus cabins rose 13.6%, while main cabin PRASM increased 11.5%.
Nocella said close-in business travel was “exceptionally strong,” with contracted business revenues flown up 27% and bookings up 30%, led by technology, financial services and professional services. United grew corporate share year over year in all of its hubs, he said.
Guidance Reflects Higher Fuel Costs Chief Financial Officer Mike Leskinen said United delivered second-quarter earnings per share of $1.99, at the high end of its guidance range of $1 to $2. The company reported a 4.8% pre-tax margin despite a $2.3 billion year-over-year fuel headwind.
United expects third-quarter earnings per share of $2.50 to $3.50, based on an all-in fuel price of about $3.69 using Tuesday’s curve. For the full year, the company tightened guidance to $9 to $11 per share, at the high end of its prior range.
Leskinen said fuel prices had increased 15% to 20% since early July, and that fuel remained almost $6 billion higher for the year compared with United’s outlook at the start of the year. He said the company expects to recover 80% to 90% of the fuel increase in the third quarter and fully recover it by the fourth quarter.
Executives repeatedly said they had not seen measurable demand weakness from higher fares. Kirby argued that industry pricing is being driven not only by fuel but by structural increases in non-fuel costs, including airport fees, labor and maintenance.
Operations Improve as Starlink Rollout Accelerates President Brett Hart said United carried 10 of the highest passenger days in company history during the quarter, including more than 640,000 customers on June 18. He said the airline had top-tier on-time departures for the sixth consecutive quarter among its largest U.S. competitors and recorded its lowest second-quarter seat cancellation rate in company history.
Hart highlighted improvements at Newark, United’s busiest global gateway. In June, Newark ranked first in on-time arrivals, posted its best on-time departure rate ever and recorded its lowest seat cancellation rate since 2018, he said.
Customer satisfaction also improved, with Hart saying United recorded its highest second-quarter Net Promoter Score since the pandemic.
United is also accelerating its rollout of free Starlink Wi-Fi. Hart said the company now expects to have close to 1,000 Starlink-equipped aircraft by the end of the year. Wi-Fi satisfaction scores on Starlink-equipped aircraft are more than double those of other Wi-Fi aircraft, he said.
Fleet and Product Investments Remain Central to Strategy Executives said United’s strategy remains focused on brand loyalty, product differentiation and premium growth. Kirby said the airline is using the current environment to accelerate investments in the customer experience “from nose to tail.”
Nocella said United continues to gain local share in each of its seven hubs and that passenger share in those hubs has increased seven points since 2019. He said United’s efforts to decommoditize revenue streams and create more consumer choice are accelerating heading into 2027.
The company said it has renewed optimism that it will take delivery of its first Boeing MAX 10 in mid- to late 2027. Nocella said the MAX 10 will have more premium seats than the aircraft it replaces and “best-in-class CASM.” United also plans to expand flying on premium Airbus A321 aircraft, including the XLR and Coastliner, later this year and into 2027.
Leskinen said United plans to retire at least 80 aircraft in 2027 as it renews and upgauges its fleet. He said those retirements will help improve cost performance because the aircraft being retired are older, less fuel efficient and have older cabins.
Balance Sheet Liquidity Raised Amid Oil Volatility Leskinen said United raised $3.7 billion of new debt through private bank transactions after heightened volatility related to hostilities with Iran and risks around the Strait of Hormuz. He said the debt was priced at a fixed-rate equivalent in the low 5% range, inside the company’s most expensive existing debt.
Once oil prices stabilize, United intends to use the funds to prepay more expensive debt and purchase aircraft with cash, Leskinen said. Since the beginning of the second quarter, the company has prepaid about $1 billion of higher-cost legacy aircraft debt and PSP debt.
United ended the quarter with $19.6 billion of available liquidity. Leskinen said the company remains focused on achieving investment-grade credit metrics and is optimistic about its prospects later this year.
About United Airlines NASDAQ: UALUnited Airlines Holdings, Inc operates United Airlines, a major U.S. full-service passenger carrier providing scheduled air transportation for passengers and cargo. The company offers a comprehensive route network that covers domestic markets across the United States as well as extensive international service to Europe, Asia, Latin America, and the Pacific. United operates a mixed fleet of narrow- and wide-body aircraft on point-to-point and hub-and-spoke routes, and supports corporate and leisure travel through offerings such as premium cabins, basic economy, and ancillary services including baggage, seat selection and in-flight amenities.
In addition to passenger operations, United provides cargo services through United Cargo, handling freight, mail and specialized shipments.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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United Airlines CEO Scott Kirby discusses how the company weathered fuel prices spike related to the war in Iran, “incredibly strong” travel demand from customers, and the possibility of further price increases. -------- More on Bloomberg Television and Markets Like this video?
Q2 diluted earnings per share were $2.46; Q2 adjusted diluted earnings per share2 were $1.99
Full-year adjusted diluted earnings per share guidance1 raised to $9.00 to $11.00
Total operating revenue up 16% year-over-year; Total revenue per available seat mile up 12% year-over-year
Nose-to-tail investments propel revenue growth — and rising customer satisfaction scores — in every cabin; Starlink remains a standout, with 450 aircraft installed and nearly 1,000 expected by year end
United continues to optimize its balance sheet and is targeting an investment-grade rating in 2026
Systemwide on-time departure rate was best Q2 since 2021; Newark posts best-ever Q2 on-time departure results
, /PRNewswire/ -- United Airlines (UAL) today reported a second-quarter profit that exceeded expectations and is near the top-end of guidance. United delivered pre-tax earnings of $1.0 billion, with a pre-tax margin of 5.8%. Adjusted pre-tax earnings2 were $843 million, with an adjusted pre-tax margin2 of 4.8%.
"Our results show why we have been investing in customer improvements throughout every cabin and winning brand-loyal customers," said United CEO Scott Kirby. "United is built to thrive in every environment, and when oil prices spiked in March, we quickly and decisively acted to adjust our schedules, while simultaneously doubling down on our customer investments. Our brand-loyal customers value their travel on United whether they are in Polaris or in Economy. Our network expansions, investment in Starlink, and innovations such as Relax Row are giving customers new reasons to choose United."
Based on oil prices as of July 14th, United expects nearly $6 billion in added fuel expense for full-year 2026 compared to the expectation at the start of the year. In the second quarter fuel expense was up $2.3 billion, or 84% year-over-year and the Company recovered approximately half of this increase. In the third quarter the Company expects to recover approximately 80% to 90% of the increase, and 100% by the fourth quarter. Yields were up 12% during the quarter, showing strong demand for United's product.
Diverse revenue streams all contributed to this quarter's success and United's ongoing resilience: Premium revenue was up 16% compared to the second quarter of 2025, revenue from Basic Economy was up 11%, loyalty revenue was up 11% and cargo revenue was up 23%. Close-in demand remained robust with contracted business revenue up 27% in the quarter. The economy cabin continues to recover with unit revenue up 12%, marking two consecutive quarters of positive growth.
United is investing in customers throughout the aircraft, including the United Relax Row℠ across a row of United Economy®-class seats. During the quarter United installed Starlink on its first widebody aircraft and Starlink is now installed on 450 United mainline and United Express aircraft. United remains on track to bring Starlink to the whole fleet by the end of 2027 — ahead of its large U.S. competitors. Starlink is free for MileagePlus® members and offers the fastest connectivity available for every customer on board. Customer satisfaction scores on flights with Starlink are twice as high as other United flights.
United's first "Born to Explore" Airbus A321XLR is expected to enter domestic service this fall, and will be connecting the U.S. to international destinations by early next year.
United employees delivered for customers throughout the quarter, which included the 10 highest-volume passenger days in United history including a company record for 640,717 customers flown on June 18. United's second-quarter on-time departure rate was its best for the second quarter since 2021, and United achieved the lowest second-quarter seat cancellation rate in its history excluding the pandemic years 2020 and 2021. Newark showed its full recovery from operational challenges a year earlier by posting its best-ever on-time departure results for a second quarter.
During the quarter, United raised $3.7 billion in new liquidity in private bank transactions at attractive rates to provide low cost insurance from geopolitical uncertainty and the possibility of an extreme spike in oil prices. Once fuel prices moderate, United expects to use this cash to further strengthen the balance sheet by opportunistically paying down higher-cost debt and to fund new aircraft deliveries this year and next. Since the beginning of the second quarter, the Company pre-paid approximately $1 billion of higher cost debt. The speed and favorable terms with which United raised this new capital demonstrates United's growing reputation among lenders as it makes progress toward an investment-grade rating this year.
Second-Quarter Financial Results
Capacity up 3.5% compared to second-quarter 2025. Total operating revenue of $17.7 billion, up 16.0% compared to second-quarter 2025. TRASM up 12.1% compared to second-quarter 2025. CASM up 15.2%, and CASM-ex2 up 6.1%, compared to second-quarter 2025. Pre-tax earnings of $1.0 billion, with a pre-tax margin of 5.8%; adjusted pre-tax earnings2 of $843 million, with an adjusted pre-tax margin2 of 4.8%. Net income of $805 million; adjusted net income2 of $649 million. Diluted earnings per share of $2.46; adjusted diluted earnings per share2 of $1.99. Average fuel price per gallon of $4.19. Generated $1.6 billion of operating cash flow. Generated $322 million of free cash flow2. Ending available liquidity3 of $19.6 billion. Total debt, finance lease obligations and other financial liabilities of $26.5 billion at quarter end. Trailing twelve months net leverage2 of 2.2x. Key Highlights
Achieved the company's best customer satisfaction scores for a second quarter since 2021 and second best of all time as measured by the Net Promoter Score, with record-setting customer satisfaction rates across the check-in experience, food and beverage and inflight entertainment. Achieved United's highest customer satisfaction score for WiFi since 2023, with more than 450 aircraft currently offering Starlink and nearly 1,000 expected by year-end. Flights with Starlink achieved a customer satisfaction score for Wi-Fi over twice as high as other WiFi-operating aircraft. Flew the largest domestic schedule in company history, serving 240 airports in the U.S. and Canada. Launched Starlink Wi-Fi on United's first widebody transatlantic flight, marking the first of nearly 60 widebody aircraft expected to be equipped this year. In collaboration with DIRECTV, brought live sports streaming to passengers on select Starlink enabled aircraft throughout June and July — nearly 6,000 flights for a total of 128,000 viewing hours as of July 5. Took delivery of United's first A321XLR aircraft, the first narrowbody featuring United's Elevated interior, including updated United Polaris® and United Premium Plus® seats, screens with Bluetooth connectivity at every seat, and a self-serve snack bar. Increased MileagePlus credit and debit card holder benefits, allowing cardholders to earn even more miles, get redemption discounts of at least 10% on every United award flight they book, and have special access to additional inventory of lowest-priced award tickets. Customer Experience
Released first-of-its-kind digital TSA tracker on the United mobile app, providing estimated wait time updates and timely information on airport security lines at all U.S. hub airports. Saw the highest ever digital check-in usage rate at 87.7% and record high rate of customers bypassing the lobby at 48.7%, thanks to time-saving improvements like the new Premier Heavy Bag Self-Service, early bag drop solutions at Chicago O'Hare and expanded Touchless ID at kiosks throughout the network. Introduced a new "base" fare option in premium cabins for long-haul international, transcontinental U.S. and select Hawaii flights, giving customers more choice of fares that include the benefits they value most. Recognized for industry leading MileagePlus benefits, including a Best Airline Affinity Credit Card for Leisure award for the United Explorer Card and a special achievement award for outstanding loyalty program from Global Traveler. Expanded collaboration with Lyft, allowing MileagePlus members to redeem airline miles for rides directly in the Lyft app—an industry first for airline and rideshare companies in the U.S. Launched a dedicated Peacock channel on United's inflight entertainment system, including over 1,600 hours of exclusive content, helping United earn Best Airline Entertainment award at Rolling Stone 2026 Travel Awards. Announced new menu items in collaboration with Chef's Table, the brand behind the Emmy award-winning Netflix series, bringing 30 new dishes from world-renowned chefs to United Polaris international business class travelers in August. Business Traveler awarded United best in Drinks Innovation and Business Class Red Wine and Champagne categories. United achieved its best ever second quarter food and beverage customer satisfaction rate since 2021. Launched WhatsApp as an automated customer service channel for use for customers in Brazil, India and Mexico. Operations
Achieved the lowest second-quarter seat cancel rate in United history excluding the pandemic years 2020 and 2021. Achieved the best on-time departure rate for a second quarter since 2021. Offered the most available seat miles for a quarter among the largest U.S. carriers for the fourteenth quarter in a row. In June, flew the 10 highest-volume days in company history, including a record of over 640,000 customers in a day, and achieved highest-ever passenger volume for a Memorial Day travel period. Newark achieved its best on-time performance for a second quarter in United history while flying nearly 4.4 million departing passengers. United transported nearly 347 million pounds of cargo – the most for a second quarter since 2020. This includes more than 9 million pounds of medical shipments and 232,000 pounds of military shipments. Network
Launched 27 new routes in the U.S. and Canada, including nine new domestic routes from Chicago-O'Hare. Began service from New York/Newark to four new transatlantic destinations: Bari, Italy; Split, Croatia; Santiago de Compostela, Spain; and Glasgow, Scotland, and launched service between Washington/Dulles and Reykjavik, Iceland. Began offering United customers the brand new 787-9 with Elevated interior on flights between San Francisco and Singapore and London. The new premium configured aircraft features 99 total premium seats including 8 United Polaris Studio℠ suites and 56 United Polaris seats. United announced plans to launch service later this year to five new destinations: Caracas, Venezuela; Cartagena, Colombia; Sapporo, Japan; St. Croix, U.S. Virgin Islands; and Tuxtla Gutierrez, Mexico. Announced four new routes to existing destinations including Chicago to Tokyo-Narita; Washington/Dulles to Los Cabos, Mexico; Denver to Providenciales, Turks and Caicos; and Houston to Santo Domingo, Dominican Republic. Employees, Communities and Investments
Unveiled a special 250th anniversary stars and stripes livery, honoring United's active-duty service members and veterans. United and its MileagePlus members donated nearly 16 million miles to nonprofits worldwide. United employees volunteered nearly 15,000 hours, participating in amenity-kit upcycling, Make-A-Wish Wish Granter training, meal packing, and more. Supported transport of hundreds of emergency responders and vital supplies into areas impacted by Typhoon Sinlaku. Fulfilled the largest Make-a-Wish wish send-off in United history, sending 40 families to Orlando from Chicago, and hosting immersive events across the U.S. that generated more than 7 million miles to support Wish Kid's travel. United provided travel support for over 600 athletes and Disabled American Veterans (DAV) staff members attending the National Disabled Veterans Winter Sports Clinic, an adaptive sports clinic for veterans. Recognized as a leading employer and brand, earning a spot on LinkedIn's list of 10 best employers to grow a career in Chicago, TIME's first-ever World's Growth Leaders 2026 list and named one of America's High-Growth Companies for 2026 by Business Insider. Became the first U.S. airline to begin recycling on all flights arriving at LAX from outside the U.S. and Canada, setting a precedent for international airline recycling. United began recycling on domestic routes in 2010. The Executives' Club of Chicago named CEO Scott Kirby "International Executive of the Year" and Government Affairs and Global Public Policy Executive Vice President Terri Fariello was named one of "Washington DC's 500 Most Influential People of 2026" by the Washingtonian. Recognized at the Halo Awards for Best Emergency/Disaster Response Initiative for United's commitment to non-profit partnerships and employees who aid communities in need. Earnings Call
UAL will hold a conference call to discuss second-quarter 2026 financial results, as well as its financial and operational outlook for the third-quarter 2026 and beyond, on Thursday, July 16, 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 third 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; disruptions to our regional network and United Express flights provided by third-party regional carriers; 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; 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 or regulatory compliance costs on our operations or financial performance; any failure to attract, train 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; 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 common stock and certain warrants exercisable for common stock; 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 March 31, 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
June 30,
%
Increase/
(Decrease)
Six Months Ended
June 30,
%
Increase/
(Decrease)
(In millions, except for percentage changes and per share data)
2026
2025
2026
2025
Operating revenue:
Passenger revenue
$ 16,100
$ 13,836
16.4
$ 29,267
$ 25,696
13.9
Cargo revenue
527
430
22.6
949
859
10.5
Other operating revenue
1,045
970
7.7
2,064
1,893
9.1
Total operating revenue
17,672
15,236
16.0
32,280
28,448
13.5
Operating expense:
Salaries and related costs
4,686
4,413
6.2
9,248
8,568
7.9
Aircraft fuel
5,110
2,775
84.1
8,150
5,476
48.8
Landing fees and other rent
1,056
961
9.9
2,004
1,834
9.3
Aircraft maintenance materials and outside repairs
906
865
4.7
1,760
1,596
10.3
Depreciation and amortization
762
733
3.9
1,518
1,461
3.9
Regional capacity purchase
743
676
9.8
1,435
1,326
8.2
Distribution expenses
644
487
32.3
1,167
983
18.6
Aircraft rent
112
67
67.4
195
118
65.0
Special charges (credits)
(145)
447
NM
(534)
340
NM
Other operating expenses
2,702
2,487
8.6
5,245
4,814
9.0
Total operating expense
16,576
13,911
19.2
30,187
26,516
13.8
Operating income
1,096
1,325
(17.3)
2,093
1,932
8.3
Nonoperating income (expense):
Interest expense
(343)
(361)
(5.1)
(670)
(717)
(6.6)
Interest income
148
167
(10.8)
284
331
(14.2)
Interest capitalized
59
51
16.7
113
98
15.2
Unrealized gains on investments, net
40
26
NM
26
5
NM
Miscellaneous, net
26
41
(37.4)
50
77
(35.0)
Total nonoperating expense, net
(69)
(77)
(9.5)
(196)
(206)
(4.6)
Income before income taxes
1,026
1,248
(17.8)
1,897
1,727
9.9
Income tax expense
221
275
(19.4)
393
366
7.4
Net income
$ 805
$ 973
(17.3)
$ 1,504
$ 1,361
10.5
Earnings per share, diluted
$ 2.46
$ 2.97
(17.2)
$ 4.60
$ 4.12
11.7
Diluted weighted-average shares outstanding
326.6
327.2
(0.2)
326.7
330.1
(1.0)
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):
2Q 2026
Passenger
Revenue
Passenger
Revenue
vs.
2Q 2025
Passenger
Revenue
per
Available
Seat Mile
("PRASM")
vs. 2Q 2025
Yield vs. 2Q
2025
Available
Seat Miles
("ASMs")
vs.
2Q 2025
2Q 2026
ASMs
2Q 2026
Revenue
Passenger
Miles
("RPMs")
Domestic
$ 9,506
20.3 %
12.2 %
13.0 %
7.2 %
48,330
40,375
Europe
3,199
10.2 %
10.4 %
9.0 %
(0.2 %)
17,270
14,119
Middle East/India/Africa
225
(16.4 %)
27.5 %
22.8 %
(34.4 %)
1,309
1,127
Atlantic
3,424
7.9 %
12.1 %
10.6 %
(3.8 %)
18,579
15,246
Pacific
1,788
18.7 %
14.0 %
10.9 %
4.1 %
11,487
9,692
Latin America
1,382
10.5 %
10.7 %
10.7 %
(0.2 %)
8,883
7,452
International
6,594
11.2 %
12.0 %
10.4 %
(0.8 %)
38,949
32,390
Consolidated
$ 16,100
16.4 %
12.5 %
12.1 %
3.5 %
87,279
72,765
Select operating statistics are as follows:
Three Months Ended
June 30,
%
Increase/
(Decrease)
Six Months Ended
June 30,
%
Increase/
(Decrease)
2026
2025
2026
2025
Passengers (thousands) (a)
48,692
46,186
5.4
91,178
86,992
4.8
RPMs (millions) (b)
72,765
70,088
3.8
136,150
129,604
5.1
ASMs (millions) (c)
87,279
84,347
3.5
164,977
159,503
3.4
Passenger load factor: (d)
Consolidated
83.4 %
83.1 %
0.3
pts.
82.5 %
81.3 %
1.3
pts.
Domestic
83.5 %
84.1 %
(0.6)
pts.
82.7 %
82.3 %
0.4
pts.
International
83.2 %
81.9 %
1.2
pts.
82.3 %
80.1 %
2.3
pts.
PRASM (cents)
18.45
16.40
12.5
17.74
16.11
10.1
Total revenue per available seat mile ("TRASM") (cents)
20.25
18.06
12.1
19.57
17.84
9.7
Average yield per RPM (cents) (e)
22.13
19.74
12.1
21.50
19.83
8.4
Cargo revenue ton miles (millions) (f)
932
885
5.3
1,810
1,774
2.0
Aircraft in fleet at end of period
1,552
1,473
5.4
1,552
1,473
5.4
Average stage length (miles) (g)
1,460
1,508
(3.2)
1,462
1,482
(1.3)
Employee headcount, as of June 30 (thousands)
117.5
111.3
5.6
117.5
111.3
5.6
Cost per ASM ("CASM") (cents)
18.99
16.49
15.2
18.30
16.62
10.1
CASM-ex (cents) (h)
13.12
12.36
6.1
13.51
12.74
6.0
Average aircraft fuel price per gallon
$ 4.19
$ 2.34
79.4
$ 3.53
$ 2.43
45.1
Fuel gallons consumed (millions)
1,219
1,188
2.7
2,312
2,254
2.6
(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
June 30,
%
Increase/
(Decrease)
Six Months Ended
June 30,
%
Increase/
(Decrease)
CASM-ex (in cents, except for percentage changes)
2026
2025
2026
2025
CASM (GAAP)
18.99
16.49
15.2
18.30
16.62
10.1
Fuel expense
5.85
3.29
77.9
4.94
3.43
43.9
Profit sharing
0.10
0.22
(53.5)
0.09
0.15
(37.4)
Third-party business expenses
0.08
0.09
(9.4)
0.08
0.09
(8.9)
Special charges (credits)
(0.17)
0.53
NM
(0.32)
0.21
NM
CASM-ex (Non-GAAP)
13.12
12.36
6.1
13.51
12.74
6.0
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
Three Months Ended
June 30,
Six Months Ended
June 30,
Twelve Months Ended
June 30,
Adjusted EBITDA and Adjusted EBITDAR (in millions)
2026
2025
2026
2025
2026
2025
Net income (GAAP)
$ 805
$ 973
$ 1,504
$ 1,361
$ 3,496
$ 3,310
Adjusted for:
Depreciation and amortization
762
733
1,518
1,461
2,997
2,961
Interest expense, net of capitalized interest and interest income
135
144
273
288
541
572
Income tax expense
221
275
393
366
980
1,009
Special charges (credits)
(145)
447
(534)
340
(615)
403
Nonoperating unrealized (gains) losses on investments, net
(40)
(26)
(26)
(5)
(26)
125
Nonoperating debt extinguishment and modification fees
1
—
5
—
25
93
Adjusted EBITDA (non-GAAP)
$ 1,740
$ 2,547
$ 3,133
$ 3,809
$ 7,399
$ 8,475
Adjusted EBITDA margin (non-GAAP)
9.8 %
16.7 %
9.7 %
13.4 %
11.8 %
14.6 %
Adjusted EBITDA (non-GAAP)
$ 1,740
$ 2,547
$ 3,133
$ 3,809
$ 7,399
$ 8,475
Fixed portion of operating lease expense
269
221
514
433
975
877
Adjusted EBITDAR (non-GAAP)
$ 2,010
$ 2,768
$ 3,647
$ 4,243
$ 8,373
$ 9,352
Three Months Ended June 30,
Six Months Ended June 30,
Adjusted Capital Expenditures (in millions)
2026
2025
2026
2025
Capital expenditures, net of flight equipment purchase deposit returns
(GAAP)
$ 1,343
$ 1,287
$ 3,015
$ 2,520
Property and equipment acquired through the issuance or
modification of debt, finance leases and other financial liabilities
63
(51)
86
(52)
Operating leases converted to finance leases
42
—
66
—
Adjusted capital expenditures (Non-GAAP)
$ 1,448
$ 1,236
$ 3,167
$ 2,468
Three Months Ended
June 30,
Six Months Ended
June 30,
Twelve Months Ended
June 30,
Free Cash Flow (in millions)
2026
2025
2026
2025
2026
2025
Net cash provided by operating activities (GAAP)
$ 1,609
$ 2,217
$ 6,409
$ 5,927
$ 8,912
$ 9,649
Net cash used in investing activities (GAAP)
(1,459)
(1,580)
(3,354)
(3,042)
(6,662)
(7,268)
Adjusted for:
Net change in short-term investments
173
302
173
556
209
1,878
Net change in restricted cash
(1)
191
(3)
1
34
74
Free cash flow (Non-GAAP)
$ 322
$ 1,130
$ 3,225
$ 3,442
$ 2,493
$ 4,333
June 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)
$ 26,464
$ 27,079
$ (614)
Operating lease obligations - current and noncurrent
7,204
5,707
1,497
Pension and postretirement liabilities - noncurrent
1,074
1,199
(125)
Adjusted total debt (Non-GAAP)
$ 34,742
$ 33,985
758
Less: Cash and cash equivalents
$ 10,166
$ 9,354
811
Short-term investments
6,471
6,262
209
Adjusted net debt (Non-GAAP)
$ 18,105
$ 18,368
(263)
Net leverage (Non-GAAP)
2.2
2.0
0.2
pts.
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
Three Months Ended
June 30,
%
Increase/
(Decrease)
Six Months Ended
June 30,
%
Increase/
(Decrease)
(in millions, except for percentage changes and per
share data)
2026
2025
2026
2025
Operating expenses (GAAP)
$ 16,576
$ 13,911
19.2
$ 30,187
$ 26,516
13.8
Special charges (credits)
(145)
447
NM
(534)
340
NM
Operating expenses, excluding special charges
16,721
13,463
24.2
30,721
26,176
17.4
Adjusted to exclude:
Fuel expense
5,110
2,775
84.1
8,150
5,476
48.8
Profit sharing
90
188
(51.9)
150
231
(35.3)
Third-party business expenses
68
72
(6.3)
132
141
(5.7)
Adjusted operating expenses (Non-GAAP)
$ 11,453
$ 10,428
9.8
$ 22,289
$ 20,328
9.6
Operating income (GAAP)
$ 1,096
$ 1,325
(17.3)
$ 2,093
$ 1,932
8.3
Special charges (credits)
(145)
447
NM
(534)
340
NM
Adjusted operating income (Non-GAAP)
$ 951
$ 1,772
(46.3)
$ 1,559
$ 2,272
(31.4)
Operating margin
6.2 %
8.7 %
(2.5)
pts.
6.5 %
6.8 %
(0.3)
pts.
Adjusted operating margin (Non-GAAP)
5.4 %
11.6 %
(6.2)
pts.
4.8 %
8.0 %
(3.2)
pts.
Pre-tax income (GAAP)
$ 1,026
$ 1,248
(17.8)
$ 1,897
$ 1,727
9.9
Adjusted to exclude:
Special charges (credits)
(145)
447
NM
(534)
340
NM
Unrealized gains on investments, net
(40)
(26)
NM
(26)
(5)
NM
Debt extinguishment and modification fees
1
—
NM
5
—
NM
Adjusted pre-tax income (Non-GAAP)
$ 843
$ 1,670
(49.5)
$ 1,342
$ 2,061
(34.9)
Pre-tax margin (GAAP)
5.8 %
8.2 %
(2.4)
pts.
5.9 %
6.1 %
(0.2)
pts.
Adjusted pre-tax margin (Non-GAAP)
4.8 %
11.0 %
(6.2)
pts.
4.2 %
7.2 %
(3.1)
pts.
Net income (GAAP)
$ 805
$ 973
(17.3)
$ 1,504
$ 1,361
10.5
Adjusted to exclude:
Special charges (credits)
(145)
447
NM
(534)
340
NM
Unrealized gains on investments, net
(40)
(26)
NM
(26)
(5)
NM
Debt extinguishment and modification fees
1
—
NM
5
—
NM
Income tax expense on adjustments, net
27
(128)
NM
89
(127)
NM
Adjusted net income (Non-GAAP)
$ 649
$ 1,267
(48.7)
$ 1,038
$ 1,568
(33.8)
Diluted earnings per share (GAAP)
$ 2.46
$ 2.97
(17.2)
$ 4.60
$ 4.12
11.7
Adjusted to exclude:
Special charges (credits)
(0.44)
1.37
NM
(1.63)
1.03
NM
Unrealized gains on investments, net
(0.12)
(0.08)
NM
(0.08)
(0.01)
NM
Debt extinguishment and modification fees
—
—
NM
0.02
—
NM
Income tax expense on adjustments, net
0.09
(0.39)
NM
0.27
(0.38)
NM
Adjusted diluted earnings per share (Non-GAAP)
$ 1.99
$ 3.87
(48.6)
$ 3.18
$ 4.75
(33.1)
UNITED AIRLINES HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
June 30, 2026
(UNAUDITED)
December 31, 2025
ASSETS
Cash and cash equivalents
$ 10,166
$ 5,942
Short-term investments
6,471
6,298
Receivables, net
2,473
2,391
Aircraft fuel, spare parts and supplies, net
1,795
1,556
Prepaid expenses and other
759
671
Total current assets
21,664
16,857
Operating property and equipment, net
47,958
46,121
Operating lease right-of-use assets
6,161
4,958
Goodwill
4,527
4,527
Intangible assets, net
2,645
2,655
Investments in affiliates and other, net
1,614
1,330
Total noncurrent assets
62,905
59,591
Total assets
$ 84,569
$ 76,448
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$ 5,772
$ 4,567
Accrued salaries and benefits
3,458
3,900
Advance ticket sales
10,752
8,131
Frequent flyer deferred revenue
3,939
3,721
Current maturities of long-term debt, finance leases, and other financial liabilities
2,170
4,426
Current maturities of operating leases
818
631
Other
854
757
Total current liabilities
27,764
26,133
Long-term debt, finance leases, and other financial liabilities
24,294
20,562
Long-term obligations under operating leases
6,386
5,417
Frequent flyer deferred revenue
4,032
4,056
Pension and postretirement benefit liability
1,074
1,058
Deferred income taxes
2,822
2,463
Other
1,500
1,478
Total noncurrent liabilities
40,108
35,033
Total stockholders' equity
16,697
15,282
Total liabilities and stockholders' equity
$ 84,569
$ 76,448
UNITED AIRLINES HOLDINGS, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(in millions)
Six Months Ended June 30,
2026
2025
Operating Activities:
Net cash provided by operating activities
$ 6,409
$ 5,927
Investing Activities:
Capital expenditures, net of flight equipment purchase deposit returns
(3,015)
(2,520)
Purchases of short-term and other investments
(4,439)
(4,722)
Proceeds from sale of short-term and other investments
4,179
4,222
Proceeds from sale of property and equipment
33
48
Other, net
(111)
(70)
Net cash used in investing activities
(3,354)
(3,042)
Financing Activities:
Proceeds from issuance of debt and other financial liabilities, net of discounts and fees
5,829
—
Payments of long-term debt, finance leases and other financial liabilities
(4,537)
(1,611)
Repurchases of common stock
(27)
(589)
Other, net
(93)
(99)
Net cash provided by (used in) financing activities
1,172
(2,300)
Net increase in cash, cash equivalents and restricted cash
4,227
585
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)
$ 10,308
$ 9,531
Investing and Financing Activities Not Affecting Cash:
Right-of-use assets acquired or modified through operating leases
$ 1,485
$ 973
Property and equipment acquired through the issuance or modification of debt, finance leases and
other financial liabilities
86
(52)
Operating leases converted to finance leases
66
—
Investment interests received in exchange for loans, goods and services
60
14
(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
$ 10,166
$ 9,354
Restricted cash in Prepaid expenses and other
—
8
Restricted cash in Investments in affiliates and other, net
142
168
Total cash, cash equivalents and restricted cash
$ 10,308
$ 9,531
UNITED AIRLINES HOLDINGS, INC.
NOTES (UNAUDITED)
Special charges (credits) and unrealized gains on investments, net include the following:
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)
2026
2025
2026
2025
Operating:
Labor contract ratification bonuses
$ 184
$ 561
$ 184
$ 561
(Gains) losses on sale of assets and other special charges
(329)
(114)
(718)
(222)
Total operating special charges (credits)
(145)
447
(534)
340
Nonoperating:
Nonoperating unrealized gains on investments, net
(40)
(26)
(26)
(5)
Nonoperating debt extinguishment and modification fees
1
—
5
—
Total nonoperating special charges and unrealized gains on investments, net
(38)
(26)
(21)
(5)
Total operating and nonoperating special charges (credits) and unrealized gains on
investments, net
(183)
422
(555)
335
Income tax expense (benefit), net of valuation allowance
27
(128)
89
(127)
Total operating and nonoperating special charges (credits) and unrealized gains on
investments, net of income taxes
$ (156)
$ 293
$ (466)
$ 208
During the three and six months ended June 30, 2026, the company recorded $184 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 three and six months ended June 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 six months ended June 30, 2026, the company recorded $329 million and $718 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $351 million and $796 million, respectively, of gains on various aircraft sale-leaseback transactions. During the three and six months ended June 30, 2025, the company recorded $114 million and $222 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $151 million and $261 million, respectively, of gains on various aircraft sale-leaseback transactions.
The company's effective tax rates were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Effective tax rate
21.6 %
22.0 %
20.7 %
21.2 %
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.
1 Adjusted diluted earnings per share is a non-GAAP financial measure that excludes operating and non-operating special charges, unrealized (gains) losses on investments, net, and income tax expense (benefit) on adjustments, net. We are not providing a target for or a reconciliation to diluted earnings per share, the most directly comparable GAAP measure, because we are unable to predict the excluded items noted above contained in the GAAP measure without unreasonable efforts, and therefore we also are not able to determine the probable significance of such items. Please see the Investor Update issued in connection with this quarterly earnings release for more information.
2 For additional information about the non-GAAP financial measures used in this press release, see "Non-GAAP Financial Information" below.
