Surging oil prices are threatening to erase every gain airlines earned from a blockbuster earnings season, and the carrier carrying the heaviest debt load has the most to lose.
Climbing oil prices are unwinding the relief rally in airline shares that followed American Airlines Group‘s (NASDAQ:AAL | AAL Price Prediction) record quarter. American Airlines stock is at $12.06, down 4%, wiping out the previous session’s rebound.
At the same time, Delta Air Lines (NYSE:DAL) stock is at $76.80, down 3%. Similarly, United Airlines Holdings (NASDAQ:UAL) stock is trading at $98.62, down 3%, leaving American Airlines stock as the laggard among these three big legacy carriers.
For sector context, the U.S. Global Jets ETF (NYSEARCA:JETS) is at $26, down 3%. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $759.82, down 0.5%, highlighting airlines as a weak spot within the broad market.
Oil’s Five-Month High Undercuts American Airlines’ Fuel Plan Under its plan for Q4 2026, American Airlines assumes jet fuel at approximately $4.70 per gallon, already meaning a $2.8 billion year-over-year increase in fourth-quarter fuel costs. Oil prices climbed to a five-month high on concerns that the U.S. conflict with Iran could flare up again, so any further climb raises the odds that expenses run past guidance.
American Airlines posted record Q3 2026 revenue of $16.3 billion in the previous session, up 19.3%, according to its SEC filings, yet swung its full-year outlook to an adjusted loss of $1 to $1.60 per diluted share as fuel costs climbed. CEO Robert Isom stated, “We produced a loss in the quarter that, but for this fuel spike, would have been solidly profitable.”
Heavier Debt Leaves American Airlines More Exposed A heavier debt load than Delta and United Airlines carry leaves American Airlines more exposed to fuel. The company reported $29.6 billion in debt and finance leases and negative stockholders’ equity of $4.2 billion. Chief Financial Officer Devon May stated “the real key unlock for leverage improvement is on the earnings side,” and fuel is the largest drag on those earnings.
Jet fuel expense at American Airlines reached $4.63 billion in Q3, up 67.5%, as the average price climbed to $3.85 per gallon from $2.37. May called fuel “a significant headwind in the fourth quarter.”
Delta stock, which closed 2025 at $68.68, holds above that mark, while United Airlines stock, which ended 2025 at $111.82, trades below it. American Airlines stock, at $15.33 when 2025 ended, has fallen furthest.
Within the U.S. Global Jets ETF, American Airlines is the largest holding at 11.3% of net assets as of June 30, ahead of United Airlines at 11.1% and Delta at 10.5%. That weighting ties the fund closely to how American Airlines handles the fuel squeeze.
What to Watch Now American Airlines guided its Q4 revenue up 19.5% to 22.5%, a demand environment that could buffer the cost hit if crude stops climbing. The company’s premium sales rose 22.9% in Q3, while managed corporate revenue climbed 27.6%.
Traders can watch for whether the oil price retreats or keeps climbing. American Airlines’ management expects 2027 growth to “decelerate considerably,” and plans to adjust capacity while high fuel costs persist. Investors weighing their AAL stock exposure should size their positions conservatively given the carrier’s fuel sensitivity and debt load.
Contact [email protected] for any questions or corrections.
American Airlines just posted record revenue and still managed to forecast a full-year loss, leaving investors scrambling to understand how a carrier can grow so fast while falling so far behind on its own bottom line.
A record quarter wasn’t enough to offset a fuel bill that has now pushed a major U.S. network carrier toward a full-year loss. American Airlines Group (NASDAQ:AAL | AAL Price Prediction) stock is at $11.72, down 4%, as the market prices in a 2026 outlook that has shifted from a possible profit to a forecast loss.
Airline stocks are falling harder than the rest of the equity market. The U.S. Global Jets ETF (NYSEARCA:JETS) is down 1.23%, tracking the carriers lower. Losses in the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) are lighter, with the benchmark fund down 0.77%.
Meanwhile, Delta Air Lines (NYSE:DAL) stock is at $75.60, down 3%, a smaller decline than the one in American Airlines shares. United Airlines Holdings (NASDAQ:UAL) stock is at $98.70, also down 3% and trailing the drop in American Airlines shares.
Fuel Costs Push American Airlines Toward a Full-Year Loss
American Airlines reported record Q3 2026 revenue of $16.34 billion on October 22, exceeding analyst estimates as premium cabins and corporate travel led the gains. On a per-share basis, its adjusted loss of $0.28 came in smaller than the $0.33 loss analysts expected. CEO Robert Isom addressed the results. He stated in the release that “American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way.”
The outlook is where American Airlines stock ran into trouble. The airline guided to a Q4 2026 adjusted loss of $0.50 to $1.10 per share, wider than expected. Its full-year forecast now calls for an adjusted loss of $1 to $1.60 per share, replacing July guidance that ranged from a $0.65 loss to a $0.65 profit. Management’s Q4 plan assumes jet fuel at $4.70 a gallon, a cost level that leaves little room for record revenue to reach the bottom line.
Shared Fuel Exposure Puts American Airlines’ Guidance in Focus
Because Delta and United Airlines face the same fuel market, the deeper selling in American Airlines stock isolates the reaction to its own guidance. Notably, American Airlines stock has lost 24% year to date (YTD), while Delta stock has gained 10% YTD.
United Airlines stock is down 12% YTD. American Airlines carries debt and finance leases of $29.6 billion against a stockholders’ equity deficit of $4.2 billion. Its balance sheet can’t absorb a prolonged fuel shock.
Jet fuel expenses at American Airlines jumped 67.5% to $4.63 billion in Q3, with its average price rising to $3.85 a gallon from $2.37 a year earlier. Those costs swamped the revenue gains and left the airline with a net loss for the quarter under generally accepted accounting principles.
On the demand side, American Airlines’ premium revenue rose 22.9%, and managed corporate sales climbed 27.6% in a sixth consecutive quarter of double-digit growth. AAdvantage loyalty registrations rose 27.4%, adding another source of durable revenue.
American Airlines’ Fuel Bill Sets the Next Move
American Airlines now faces the question of whether fuel prices ease from the level built into its Q4 guidance. Management expects a $2.8 billion year-over-year jump in Q4 fuel costs and roughly $7 billion in annual drags. Slower network growth in 2027 is also part of the plan, according to the company’s outlook.
American Airlines’ Q4 report will show whether premium and corporate demand holds up against a fuel price assumption nearly double year-ago levels. A plan to reach nearly $1 billion in annual run-rate savings by year-end offers partial support on the cost side. Given record revenue offset by a widening loss while fuel stays elevated, investors should adjust their AAL stock holdings carefully.
Contact [email protected] for any questions or corrections.
An enormous new airline lounge is poised to be a destination in and of itself.
United Airlines is opening the space this week at Houston’s George Bush Intercontinental Airport, staking its claim to the largest airport lounge in North or South America. Located in IAH’s revamped Terminal B, the lounge features seating for 800 people, including a 1,350-square-foot outdoor terrace offering panoramic views of planes coming and going.
To enjoy the luxe new space, fliers will need a United Club membership, an eligible United rewards credit card, or a premium cabin ticket that comes bundled with club access. Once inside, travelers will find two full-service bars, two buffet stations, and nearly a dozen private phone rooms where they can handle business on the go.
“Inspired by Houston’s distinctive spirit, the club’s design captures the feeling of traveling from the city to the sky, blending elements of the local cityscape and bayou landscape with nods to Houston’s legacy as a center of aerospace innovation and cultural diversity,” the company’s press release reads.
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The lounge is United’s latest addition at IAH, following the 2025 opening of its United Fly Club in Terminal B. That quick-service lounge lets fliers scan in for grab-and-go snacks, beverages, and barista-crafted coffee when they don’t have time to enjoy one of the airline’s more relaxed lounge experiences. The new Terminal B North club brings United’s count of clubs and lounges at IAH up to seven.
Reimagining the airport experienceThe United lounge highlights work by Texas-based artists, ranging from immersive digital experiences to mosaic murals to sculptures. There’s also some photography taken by a United employee based in San Antonio. The initiative is part of a $16.8 million public art program intended to imbue the recent overhaul of Terminal B with a Houston vibe.
The art program is just the latest sign that airports are pouring real money into creating unique spaces with a focus on local flourishes—a huge improvement on the drab, lifeless interiors that frequent fliers are accustomed to.
Revenue: Record Q3 revenue of $17.9 billion, up 17.4% year over year.TRASM: Increased 15.9% year over year.Yields: Up 17% year over year.Passenger Load Factor:
Terminal B North features three-levels and 765,000-sq-ft with 22 mainline gates offering customers more seats on larger, more modern aircraft to destinations across the country and around the world
New concourse also includes a 54,000-sq-ft United ClubSM with seating for 800 people, an outdoor terrace and panoramic views of the airfield
The terminal features the largest public art program to date at IAH with 10 major art installations inspired by Houston's bayou ecosystem, cultural diversity, history, and innovation
The terminal offers family-friendly amenities such as a soft play area, sensory room, comfortable seating options, and 11 sets of restrooms
Travelers will find Houston favorites like B&B Butchers & Restaurant, Rosie Cannonball, Pizaro's Pizza, Blood Bros. BBQ, Katz Coffee and Blue Bell Creameries
As the largest airline in Houston – 14,000+ employees and 500+ daily departures – United has invested more than $3.5 billion in IAH since 2015
, /PRNewswire/ -- United today previewed its new Terminal B North Concourse at George Bush Intercontinental Airport (IAH), a three-level, 765,000 square-foot, 22 mainline gate facility that opens to the public tomorrow.
Terminal B North also includes a huge, 54,000-sq-ft United Club – the largest club of any airline in the Americas – with seating for 800 people, an outdoor terrace and panoramic views of the airfield.
Terminal B North Concourse at George Bush Intercontinental Airport (IAH) The terminal design creates a sense of openness with soaring ceilings, expansive gathering spaces and sweeping airfield views and the public spaces feature 10 different art installations inspired by Houston's bayous, cultural diversity, innovation and global connections, as well as a dedicated sensory room for travelers.
"I want our customers to start their vacation the minute they show up at the airport and Terminal B North sets a new standard for facilities across the country," said United Airlines CEO Scott Kirby. "Houston is great example of our focus on the overall customer experience – yes, we're investing in new aircraft, products and technology here, but we're also focused on improving the infrastructure, building new concourses, baggage systems and training and maintenance facilities for our employees."
Travelers will find new retail, concession and restaurant options including Houston favorites like B&B Butchers & Restaurant, Rosie Cannonball, Pizaro's Pizza, Blood Bros. BBQ, Katz Coffee and Blue Bell Creameries.
United is the largest airline in Houston, with more than 14,000 employees and 500 daily departures, and has invested more than $3.5 billion in the city's airport since 2015.
The new concourse, replacing facilities dating back to 1969, is the centerpiece of United's broader $2.6B Terminal B Transformation Program. Together with improvements to the Terminal B South Concourse, United will have 48 gates in Terminal B. Every United flight operating from the Terminal B North Concourse will board through a jet bridge, delivering more convenience to travelers. The transformation also increases the overall number of customers who can fly on peak travel dates in 2026 by 40% compared to 2023, while building on United's broader investment in Houston facilities and employees.
Operational Excellence and Modern Infrastructure
The new Terminal B is engineered to accommodate United's growing fleet and support a seamless customer journey. Key infrastructure highlights include:
22 new mainline gates in the North Concourse: The gates are designed for narrow-body aircraft and provide larger seating and boarding areas. 26 gates in the South Concourse: Upgrades to the Terminal B South Concourse include accommodations for larger regional aircraft, additional jet bridge access, and other customer-focused enhancements Jet bridges for every United flight in North Concourse: All United flights operating from Terminal B North use jet bridges, providing a climate-controlled connection between the terminal and aircraft. Advanced baggage technology: A new baggage handling system includes tracking technology designed to support the terminal's increased capacity. Expanded airport access: Includes additional curbside and roadway capacity, a ground-level check-in area and a traffic bypass between Terminals B and A. Latin America Gateway and a Record-Size Domestic Network
From IAH, United serves 65 international destinations across the globe. With 57 international destinations within Latin America and the Caribbean, United offers more destinations to the region than from any other hub in its network, including destinations that no other U.S. airline serves. Domestically, 2026 represents United's largest schedule in over 10 years, with nearly 17M annual seats for both Houston residents and visitors as well as international connecting customers. This year, United added ten new cities to its domestic network including Hartford, Connecticut, Chattanooga, Tennessee, Burlington, Vermont, and Spokane, Washington and will continue to grow in 2027.
This winter, United is adding three new international destinations from IAH, enabled by the continued growth of the airline in Houston. Later this month, United will launch new service to Tuxtla Gutiérrez* from Houston, giving the Mexican city its only nonstop international connection. In December, United will become the first U.S. airline to offer nonstop service between Houston and Cartagena, Colombia, and in January United will connect Houston with Caracas, Venezuela*. Together, these new routes strengthen Houston's role as an important global hub and a key gateway to Latin America, connecting travelers with places that have historically been harder to reach from the United States.
The redeveloped Terminal B gives United greater flexibility to grow its Houston network. With 22 new mainline gates in the North Concourse, United can now accommodate larger aircraft and add seats to markets where demand is strongest. The South Concourse has also been reconfigured to better accommodate larger, two-class regional aircraft, enhancing connectivity across United's network. This added flexibility is creating opportunities for future growth, including the plans to restart of service between Houston and Chihuahua, Mexico (CUU)* next spring, further expanding travel options for customers and strengthening Houston's role as a leading gateway to Mexico and Latin America.
The Largest Airline Club in the Americas
The redeveloped Terminal B North includes the largest United Club and largest airline club across North and South America. Located on the mezzanine level, the 54,000-square-foot club features panoramic views of the airfield and expanded space for customers to dine, work or relax before their flights.
With seating for 800 travelers, the expansive club offers more space, comfort and convenience, including a 1,350-square-foot outdoor terrace. Customers can enjoy two full-service bars, two buffet stations, eleven private phone rooms, high-speed Wi-Fi and power outlets throughout the club, whether they're looking to relax, work or recharge before their flight.
Inspired by Houston's distinctive spirit, the club's design captures the feeling of traveling from the city to the sky, blending elements of the local cityscape and bayou landscape with nods to Houston's legacy as a center of aerospace innovation and cultural diversity. The space features a curated collection of artwork from predominantly Texas-based artists, including photography by a San Antonio-based United employee.
The new club builds on United's growing lounge portfolio at IAH, following the February 2025 opening of United Club Fly on the south side of Terminal B. Designed for travelers on the go, United Club Fly offers self-scan entry and a convenient selection of fresh food, snacks, beverages and barista-made coffee to take to their gates. With the opening of the new Terminal B North club, United has seven club and lounge locations across IAH, including United Club Fly and the United Polaris® lounge.
Customers can access United Club locations through a United Club membership, eligible United credit cards or select premium cabin tickets.
A Sense of Discovery
Terminal B North was designed to elevate the entire experience of getting customers from curb to gate:
Houston-Inspired Art: A $16.8 million public art program creates a distinct Houston experience for travelers, including 10 large-scale installations from Houston-based, national and international artists selected from nearly 150 submissions across Houston, the United States and Europe. The Terminal B public art program is the single largest art program investment at IAH to date. Inspired by Houston's bayous, ecosystem, cultural diversity, history and innovation, the artworks are integrated throughout the terminal's public spaces, concourses and baggage claim areas. Highlights include The Digital Bayou, a series of three immersive digital art experiences created by Moment Factory, a new commission from internationally recognized Houston artist Rick Lowe and reimagined mosaic murals by Houston artist Dixie Friend Gay. Unique sculptural artworks by artists Karen Navarro, Shavon Aja Morris, Rachel Hecker, Matthew Mazzotta, and Edra Soto can also be found throughout the terminal. A More Inclusive Customer Experience: Designed to create a more inclusive customer experience, Terminal B features a dedicated sensory room for travelers with autism and sensory sensitivities. Located in the connector area and separate from the children's play area, the calming space gives children and adults a place to step away from the airport environment and engage with sensory experiences they can control. Building on sensory rooms in Terminals A and D, the new space includes tactile, auditory, visual and multisensory features such as an airplane experience room, sitting pods, interactive activity panels, a nature room, a fiber-optic stargazer ceiling and a bubble tube area. Built Toward LEED Certification: As part of United's commitment to sustainable development, the new IAH Terminal B North Concourse is pursuing LEED Gold Certification through the U.S. Green Building Council's LEED v4 Building Design and Construction program. The terminal incorporates a wide range of sustainable design features, including a projected 29% reduction in energy costs, significant (more than 35%) indoor water-use reductions, advanced energy and water metering, enhanced indoor air quality strategies, heat island reduction measures, light pollution reduction, and dedicated recycling collection systems. The project also features extensive electrification infrastructure, including 91 ground support equipment charging stations, electric ground power units, and pre-conditioned air systems to support lower-emission airport operations. World-Class Dining and Retail
United selected a world-class lineup of dining and retail partners for the new space, dedicating more than 105,000 square feet to retail and concessions that reflect Houston's status as a culinary capital.
The Concourse features local concepts that reflect the culinary diversity of Houston alongside trusted national brands including:
Houston Favorites: B&B Butchers & Restaurant, Rosie Cannonball, Pizaro's Pizza, Blood Bros. BBQ, Katz Coffee and Blue Bell Creameries. National Brands: Starbucks, Raising Cane's, Jimmy John's, Jersey Mike's, Smashburger, Jamba, Auntie Anne's, Cinnabon and Protein Bar & Kitchen. Wellness and Retail: Be Relax Spa, offering massages, nail care and facials, sits alongside high-end duty-free and specialty retail shops. Later this year, United plans to introduce food delivery through the United app at IAH, giving eligible customers a new way to order food, beverages and select travel essentials before their flight. Customers will be able to browse participating restaurants, place an order directly through the app and pick it up near their gate, or have it delivered to them, making it easier to grab a meal or essential item when time is limited. The service is designed to complement the expanded dining options in Terminal B and help create a more seamless airport experience from curb to gate.
United's Continued Investment in Houston
The Terminal B transformation has supported employment and economic activity across the Houston region with approximately 3,000 construction-related jobs, while partnering with 308 Houston-based suppliers. According to a recent study by Compass Lexecon, United's direct employment in Houston contributes more than $1.2 billion in economic activity annually.
"The opening of the Terminal B north concourse strengthens one of Houston's most important transportation and economic assets," said Houston Mayor John Whitmire. "This investment supports jobs, expands the airport's capacity and gives residents and visitors a modern facility that represents the scale and ambition of our city."
United's $3.5 billion investment in Houston includes a $16 million Technical Operations Training Center at IAH, a $177 million Ground Service Equipment Maintenance Facility designed to support both employees and the airline's fleet and the transformation of Terminal B.
*Subject to government approval
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".
American Airlines Group (AAL +1.03%), a U.S. network airline serving passengers and cargo through major hub-and-spoke operations, closed at $12.24, up 1.03%. Airline shares rose after United Airlines (UAL +3.99%) issued stronger revenue guidance, as investors watch fuel-cost trends.
Trading volume reached 76.3 million shares, coming in nearly 17% above its three-month average of 65.1 million shares. American Airlines Group IPO'd in 2005 and has fallen about 37% since going public.
How the markets moved todayS&P 500 (^GSPC +0.58%) closed at 7,758, up 0.59%, while the Nasdaq Composite (^IXIC +1.05%) finished at 26,703, up 1.05%. Among passenger airlines and freight air transportation names, Delta Air Lines (DAL +1.32%) closed at $77.67, up 1.32%, and United Airlines closed at $101.67, up 3.99%.
What this means for investorsOn Wednesday, Oct. 21, airline stocks extended their move after United Airlines reported record third-quarter revenue growth of 17% year over year to $17.9 billion on Oct. 20. The company was able to offset rising fuel costs with higher ticket prices as customer demand remained resilient.
United's success adds to Delta's strong quarterly results announced on Oct. 9. Delta reported record revenue of $20.2 billion, representing a 21% year-over-year increase, and it expects the next quarter's sales to grow 20% year over year. Delta's September quarter results and outlook added a fresh read on fares, fuel, and capacity discipline for the airline group. Investors are comparing those signals with American's setup.
American Airlines will release its Q3 earnings report on Oct. 22. In the second quarter, it delivered sales of $16.7 billion, the highest total in company history, representing growth of 16.3% year over year. Earlier this month, American's cash-and-miles bookings launch added a loyalty-product tailwind that could support engagement and ancillary revenue over time.
United Airlines Holdings Inc (UAL) Stock Up 4.0% but GF Value Says Overvalued -- GF Score: 83/100
On October 21, 2026, United Airlines Holdings Inc UAL shares rose 4.0% to a current price of $101.67. This price movement occurs within a 52-week range of $84.64 to $138.77, reflecting significant volatility in the stock's performance over the past year.
GF Value™ verdict: UAL is currently trading at $101.67, which is 5.5% over its GF Value™ estimate of $96.39.GF Score™: UAL has a strong GF Score™ of 83/100, indicating robust fundamentals.Insider activity: Over the past 12 months, insiders sold $53.4 million worth of shares, with no buying activity reported.Is UAL Overvalued or Undervalued?Currently, United Airlines Holdings Inc UAL is priced at $101.67, which is above the GF Value™ estimate of $96.39, marking it as 5.5% overvalued. This suggests that there is a lack of margin of safety for potential investors, as the stock price exceeds what GuruFocus considers its intrinsic value based on historical performance and future growth prospects. The GF Valuation label indicates that the stock is fairly valued, and while this assessment does not outright suggest a buying opportunity, it does highlight the risks associated with investing at current levels.
When a stock trades above its GF Value™, it may indicate that the market has high expectations for the company’s future performance, which can be risky if those expectations are not met. Investors should be cautious, as overvaluation can lead to price corrections in the future.
How Does UAL's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)9.5x8.5xForward P/E8.1xN/AUAL's current P/E ratio of 9.5x is 12% above its 5-year median P/E of 8.5x, suggesting that the stock is trading at a premium relative to its historical valuation. This P/E analysis aligns with the GF Value™ verdict that UAL is overvalued, as the stock appears to be priced higher than what historical earnings multiples would suggest is reasonable.
What Does UAL's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's fundamentals to determine its overall quality and potential for future performance. UAL's GF Score™ of 83/100 is indicative of strong fundamentals, with particular strengths in profitability and growth, while financial strength is a notable area of concern.
MetricRatingGF Score™83/100Financial Strength5/10Profitability7/10Growth7/10Valuation7/10Momentum8/10UAL’s strongest areas are in profitability and momentum, both scoring 7/10 and 8/10 respectively, indicating a solid ability to generate profits and maintain positive price trends. Conversely, the financial strength score of 5/10 raises concerns about the company's balance sheet and overall financial resilience, which could impact its long-term stability and growth potential.
What Are Gurus and Insiders Doing with UAL?Currently, 10 gurus hold shares of United Airlines, with 6 adding to their positions and 5 trimming them in recent quarters. This mixed activity from top investors suggests a divergence of opinion about UAL’s future prospects, indicating that while some see potential, others are cautious about the stock's valuation and market conditions.
In terms of insider trading, the notable sale of $53.4 million worth of shares by insiders over the past year, with no buying reported, could suggest a lack of confidence among company executives regarding the stock's future performance at current price levels. Such a trend can often be interpreted as a bearish signal, indicating that insiders may not believe the current price is justified.
What This Means for InvestorsBased on the GF Value™ assessment, United Airlines Holdings Inc UAL is currently overvalued, trading at 5.5% above its intrinsic value estimate. Given the stock's elevated P/E ratio compared to its historical averages and the concerning insider selling, potential investors may want to exercise caution when considering an investment in UAL.
For more details, please visit the United Airlines Holdings Inc UAL stock page, and explore the GF Value™ page for further insights.
Frequently Asked QuestionsWhat is UAL's GF Score™?
UAL has a GF Score™ of 83/100, signifying strong fundamentals and performance potential.
Is UAL overvalued or undervalued?
UAL is currently overvalued, trading at 5.5% above its GF Value™ estimate.
What is UAL's P/E ratio?
UAL's current P/E ratio is 9.5x, which is 12% above its 5-year median P/E of 8.5x, indicating it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
United Airlines Holdings, Inc. ( UAL ) Q3 2026 Earnings Call October 21, 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 Conference Call Participants Michael Linenberg - Deutsche Bank AG, Research Division Thomas Fitzgerald - TD Cowen, Research Division Sheila Kahyaoglu - Jefferies LLC, Research Division Conor Cunningham - Melius Research LLC Andrew Didora - BofA Securities, Research Division Jamie Baker - JPMorgan Chase & Co, Research Division Ravi Shanker - Morgan Stanley, Research Division Brandon Oglenski - Barclays Bank PLC, Research Division John Godyn - Citigroup Inc., Research Division Scott Group - Wolfe Research, LLC Duane Pfennigwerth - Evercore ISI Institutional Equities, Research Division Catherine O'Brien - Goldman Sachs Group, Inc., Research Division Leslie Josephs John Pletz Presentation Operator Good morning and welcome to United Airlines Holdings Earnings Conference Call for the Third Quarter 2026. My name is Regina and I will be your conference facilitator today.
United Airlines CEO Scott Kirby on Wednesday reiterated his support for a wealth tax as a matter of fairness amid criticism over his comments given his compensation.
Kirby said in an interview with CNBC's "Squawk Box" that his prior comments in favor of a wealth tax were in response to a New York Times question about a non-consensus view that he holds, adding that "I'm not a politician, I'm not ever going to be in politics, nor am I a policy advocate for this or other programs."
"I think a wealth tax in particular is a more fair – is just about fairness. Today, you probably pay 40% income taxes on your income. But if you're wealthy enough, you could put money aside – and by the way, I think it would apply to me – put money aside and let it grow forever, never realize income on it," he said. "You can let it grow forever and it never gets taxed. You get stepped-up cost basis at the end, and it never gets taxed."
United Airlines CEO Scott Kirby reiterated his support for a wealth tax as a "matter of fairness." (Al Drago/Bloomberg via Getty Images)
"That doesn't feel fair to me," Kirby said, adding that those are his views: "If it was up to me, it's not up to me, so no one should be mad about one person's view. But if it was, I would have a system where we have lower income taxes and higher taxes on – some kind of taxes on the gain in wealth. At some point, I think those ought to be taxed."
UNITED CEO SILENT ON $32M COMPENSATION AFTER CALLING WEALTH GAP A 'DANGER'
"It's just a matter of fairness. Hard-working Americans pay 40% of their money in income [taxes]. I think as a matter of fairness, passive wealth growth ought to be taxed somehow. And it's just one guy's view, but that's what I think," Kirby said.
The United Airlines CEO told The New York Times in a recent interview that wealth inequality poses a "danger" to American society and said that he would support a national wealth tax as well as "inheritance taxes that get close to 100% at some level."
DOJ OFFICIAL TAKES SWIPE AT UNITED AIRLINES CEO AMID BACKLASH OVER WEALTH TAX PROPOSAL
Kirby was critical of the lack of taxation of passive wealth growth. (Michael Nagle/Bloomberg via Getty Images)
Kirby's comments about wealth taxes and inequality have drawn attention to his compensation at United Airlines. He received about $32.3 million in total compensation, including salary, stock awards and performance incentives during the airline's fiscal year 2025.
United didn't respond to a previous inquiry from FOX Business about Kirby's compensation, which included a question about whether he is planning to reduce his compensation to share more of his wealth with his employees.
$32 MILLION CEO LECTURES AMERICA ON INCOME INEQUALITY
Ticker Security Last Change Change % UAL UNITED AIRLINES HOLDINGS INC. 101.67 +3.90
+3.99%
During the CNBC interview, Kirby was asked about criticisms of how a wealth tax can punish entrepreneurs and if there are other ways to address his concerns about the stepped-up basis rather than trying to tax unrealized capital gains.
"This was one comment in a long-ranging interview. I'm not trying to define what the tax would look like or what it should be," he said. "There's a lot of different ways to skin that cat."
"Passive wealth growth, you can just invest – that's not an entrepreneur – you can just invest, put the money aside, it can grow tax-free until your death, then you get stepped-up cost basis. Literally, wealth growth never pays taxes, and that's the point to me that feels unfair," Kirby said. "I'm not a policy advocate, I'm not arguing for it."
On its third quarter of 2026 earnings call, held on Oct. 21, 2026, United Airlines (UAL +6.37%) announced third-quarter earnings per share of $2.54. Higher fuel expenses tested airline profitability across the industry, but investments in customer service and pricing discipline helped protect operating margins. Three things management said stand out.
United Airlines is installing Starlink, a high-speed satellite Wi-Fi service owned by Space Exploration Technologies, across its aircraft fleet to attract high-value passengers from competitors. Management expects this technology edge to increase unit revenue, or revenue earned per seat mile flown, as more travelers switch carriers.
It is hard to get brand-loyal customers to switch airlines. And while it is mostly anecdotal, we are seeing two important things happen. One, customers who are brand-loyal to other airlines and have flown them for years switched to a United flight solely because of Starlink. And two, once they try us, they stick with us.
-- J. Scott Kirby, Chief Executive Officer2. Pricing Discipline Helps Recapture Surging Aviation Fuel CostsJet fuel prices spiked near the end of the quarter and raised total operating expenses for the carrier. United Airlines raised ticket yields, or average fare paid per mile, to recover nearly three-quarters of that cost increase while maintaining demand.
Our ability to pass on higher fuel costs through higher ticket prices is stronger than ever before and demonstrates how much United and the industry has transformed.
-- Michael Leskinen, Executive Vice President and Chief Financial Officer3. Credit Facility Expansion Cuts Annual Interest Fees SignificantlyThe company expanded its revolving credit facility, an unfunded bank loan line, from $3 billion to $5 billion while extending its maturity to 2031. Management plans to pay down gross debt by a matching amount to save $70 million in annual interest fees.
This is currently the largest airline revolving credit facility in history, and yet another proof point of the strength of our business and our balance sheet. Rising oil prices have impacted our near term metrics. With our net leverage at 2.4 turns, however, we remain determined to achieve investment grade metrics and hopefully also ratings next year.
-- Michael Leskinen, Executive Vice President and Chief Financial OfficerLooking AheadPassenger demand holds firm across cabin classes, and operational momentum continues to build. Expanded airport hubs in Houston and Washington Dulles provide structural growth advantages alongside network retrofits.
We are making significant investments across our hub network, including at Washington Dulles, where we are also advancing a major airport transformation and expect to open a new concourse with 14 additional gates next month. Together, these investments reflect our continued execution of our strategy to build a stronger airline positioned for long-term profitable growth.
-- Brett J. Hart, PresidentLeadership is monitoring fleet deliveries and capacity discipline. Long-term strategy centers on expanding profit margins above market cycles.
While our relative margin has been industry leading, we remain focused on achieving absolute double digit pre-tax margins as our top financial goal.
-- Michael Leskinen, Executive Vice President and Chief Financial OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Cleared For Takeoff: Boeing's 737 MAX 10 Approval Sets Up a Major Cash Flow RecoveryUnited Airlines NASDAQ: UAL said third-quarter revenue rose 17.4% year over year to a record $17.9 billion, as the carrier raised fares amid higher fuel costs and continued to gain share in its hub markets.
The airline posted third-quarter adjusted earnings per share of $2.54 and a 6.2% pre-tax margin, within its prior guidance range. Fuel prices accelerated during the quarter, increasing expenses by $1.8 billion from a year earlier, according to Executive Vice President and Chief Financial Officer Mike Leskinen.
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Delta's Guidance Cut Could Spell Trouble for the Airline IndustryUnited said it recovered 72% of the year-over-year fuel-expense increase during the period, though Leskinen said the company expects it can recover 100% of higher fuel costs over time. The partial recovery reflected the late-quarter rise in jet fuel prices, when much of the carrier's revenue had already been booked.
Revenue Gains Fueled by Higher Yields Chief Commercial Officer Andrew Nocella said total revenue per available seat mile, or TRASM, increased 15.9% in the quarter, while yields rose 17%. Passenger load factor declined modestly as United accepted lower occupancy in exchange for higher fares.
Premium revenue, including Economy Plus, rose 17% on a 2.5% increase in capacity. Non-premium revenue increased 18.4% on a 0.5% increase in capacity. Business revenue rose 22%, while contracted-business revenue increased 26%. Leisure revenue grew 16%, with stronger yield gains than business travel. Cargo revenue climbed 23%, primarily because of higher yields. Loyalty revenue increased 17%, with remuneration from Chase up 15% and co-brand card portfolio spending up 13%. 2 "Cheap for a Reason" Airline Stocks That May Be Worth the RiskNocella said United expects economy-class RASM to again outpace premium RASM in the fourth quarter. He also said sell-in yields have recently been up in the “very high teens,” including some weeks above 20%, though the company still needs further pricing gains to fully capture current fuel costs.
Latin America, including Central America, the Caribbean and Florida, along with Newark and London, were among the strongest RASM contributors in the third quarter. Florida RASM rose 26%, Nocella said. Hawaii, the South Pacific and Chicago were relative laggards, although United expects Hawaii to improve in the fourth quarter.
For the fourth quarter, United forecast adjusted earnings per share of $0.50 to $1.50, based on an assumed all-in fuel price of about $4.80 per gallon using the forward curve as of the prior Friday. Leskinen said the company expects TRASM to accelerate from the third quarter while non-fuel unit-cost growth decelerates.
Starlink and Product Investments Central to 2027 Plan Chief Executive Officer Scott Kirby said United is preparing for elevated fuel costs and faster industry capacity growth in 2027, while continuing to target double-digit pre-tax margins. He said the company is not assuming lower fuel prices, lower industry capacity or a continued industrywide willingness to sacrifice load factor for yield.
Instead, Kirby highlighted the airline's investments in service, technology and onboard products, particularly the rollout of Starlink connectivity. About half of United departures currently use Starlink-equipped aircraft, and the company expects that share to reach 61% by the end of 2026, 87% by June 1, and fleetwide availability by the end of 2027.
Kirby said United is seeing anecdotal evidence that passengers loyal to other airlines are selecting United flights because of Starlink, then remaining with the carrier after experiencing its app, service, seatback screens, larger overhead bins and other improvements. He said the connectivity rollout should provide a meaningful RASM tailwind in 2027 and 2028, but likely would not be enough on its own to produce double-digit margins next year.
United also plans to complete installation of its signature interiors and Starlink across mainline and express jets by the end of 2027. Nocella said the airline will introduce Relax Row, an Economy Plus open-middle-seat product, expand tiered fares and continue adding premium capacity through A321neo Coastliner and A321XLR aircraft.
The company expects to add 1 million new co-brand card accounts in 2026 and pursue another 1 million in 2027. Nocella said United hopes loyalty revenue can grow at least 14% to 15% annually for the next several years as new accounts mature and customers move to higher-tier cards.
Fleet, Costs and Balance Sheet United congratulated Boeing on certification of the MAX 10 and said it expects to receive its first aircraft next year. Nocella said United plans to take roughly two widebody aircraft per month and more than 100 narrowbody aircraft in 2027, supporting replacement of older, less fuel-efficient aircraft and continued fleet upgauging.
Third-quarter CASM-ex, or unit costs excluding fuel and certain items, rose 7.8%, reflecting the full run-rate impact of the flight attendant agreement and capacity reductions. Leskinen said the third quarter should represent the high point for CASM-ex growth, with expense growth expected to moderate in the fourth quarter and step down materially in 2027.
For 2027, United is targeting 2% to 3% CASM-ex growth, though Leskinen cited higher distribution and airport costs as ongoing pressures. The company said airport costs have risen 60% since the pandemic. Management emphasized that it will manage for margin rather than a fixed unit-cost objective and could cut unprofitable flying if fuel prices remain elevated.
United ended the quarter with $17.7 billion in liquidity, including its undrawn revolving credit facility, after repaying about $1 billion of debt. The company raised $900 million in fixed-rate debt at an equivalent rate in the low-5% range and increased its revolving credit facility to $5 billion from $3 billion while extending its maturity to 2031.
Leskinen said United plans to reduce liquidity to $18 billion by year-end and expects the revised credit structure to save about $70 million annually in interest and fees. The company’s net leverage stood at 2.4 times, and United continues to target leverage below two times and investment-grade credit metrics.
Hub Investments and Chicago Capacity Constraints President Brett Hart said United ranked second in on-time departures during the third quarter and first among the three largest U.S. carriers in seat cancellation rate. The airline recorded its highest quarterly net promoter score since 2022 despite record passenger growth, he said.
United is advancing terminal projects in Houston, Washington Dulles and Dallas. Hart said a new 14-gate concourse at Dulles is expected to open next month, while United also opened what Nocella described as the largest United Club and largest airport club in the Americas in Houston.
At Chicago O'Hare, United expects minimal domestic industry capacity growth beginning in the second quarter of 2027 because of FAA-imposed flight constraints. Nocella said United is capped at 600 daily flights and believes the limitation could remain in place into 2028 as airport construction continues. United captured 50% of Chicago-based passenger revenue for the first time in the second quarter of 2026 and expects the capacity limits to become a tailwind after April, he said.
About United Airlines (NASDAQ:UAL)United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline headquartered in Chicago, Illinois. The company provides scheduled passenger air transportation and air cargo services, connecting customers across the United States and to international destinations.
United operates a broad network serving North America, Latin America, Europe, Asia, Africa and Oceania. Its operations are supported by hubs in major U.S. cities, including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC, as well as an extensive network of regional carriers operating under the United Express brand.
The company offers several travel classes and related services, including premium-cabin seating, onboard amenities, airport lounges and the MileagePlus customer loyalty program.
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 just handed Wall Street a revenue forecast that sent its stock soaring past American Airlines and Delta by a country mile, but a ballooning fuel bill stands between the carrier and the wider margins investors actually want.
Record revenue momentum is beating back a steep fuel bill at United Airlines Holdings (NASDAQ:UAL | UAL Price Prediction), and United Airlines shares are pulling far ahead of the carrier’s biggest rivals. United Airlines stock has climbed 6%, hitting $103.88 in afternoon trading, a jump that shows the market prizes the revenue outlook despite lower quarterly profits. Buyers are looking past the fuel hit and focusing on a revenue trend that keeps rising.
The U.S. Global Jets ETF (NYSEARCA:JETS) is up 2% to $26.83, a healthy sector gain that still sits well behind United Airlines stock. At the same time, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.7% to $774.25, leaving airline stocks comfortably ahead of the broad market.
Meanwhile, shares of American Airlines Group (NASDAQ:AAL) are up 4% to $12.57, a solid advance that trails United Airlines stock by a wide margin. Delta Air Lines (NYSE:DAL) stock is up 3% to $79, lagging both United Airlines and American Airlines shares.
Record Q4 Revenue Forecast Outweighs the Fuel Squeeze
United Airlines posted record operating revenue of $17.9 billion in its Q3 2026 report, released ahead of this session, and said it expects Q4 2026 top-line growth to exceed 20% year over year as demand and customer spending stay strong. A sharply higher fuel bill weighed on the quarter, though adjusted earnings per share at United Airlines landed within the company’s guidance. CEO Scott Kirby stated, “Our employees met the challenge of our ever-changing environment and our results prove the resilience of focusing on building a brand-loyal airline for customers.”
On the balance sheet, United Airlines expanded its revolving credit facility as it works toward an investment-grade credit rating. Management stated that the airline is “highly confident” in recovering the full rise in fuel costs, albeit with a lag. That lag is the heart of the squeeze, since fares have only partly caught up with jet fuel so far.
Why United Airlines Is Outflying American Airlines and Delta
United Airlines leans on premium cabins, loyalty revenue and long-haul international routes, and that mix is carrying the top line right now. Each of the carrier’s premium, loyalty, cargo and contracted business revenue streams grew at a double-digit pace in the quarter, a breadth that points to durable demand. Kirby is upbeat on pricing, saying, “I think there’s a good chance that the industry surprises to the upside on yield next year, even in a higher capacity environment.”
Product upgrades give United Airlines another edge, with Starlink Wi-Fi emerging as a selling point across its fleet. Kirby delivered his remarks through the earnings release. He declared, “We are winning new long-term, brand-loyal United customers because they are trying us for Starlink but staying with us for the industry-leading app, great service, on-board product and technology.” That retention strategy hands United Airlines a story beyond fares, though it also demands heavy spending on aircraft and cabins.
American Airlines and Delta compete for the same corporate and premium travelers with their own networks, so the demand lifting United Airlines draws on a pool its rivals share, and gains in American Airlines and Delta shares remain modest beside the jump in United Airlines stock, a sign the market views the guidance as largely specific to one carrier. However, American Airlines and Delta shares are still participating in the sector advance, which keeps the rally broader than a single-stock event.
Fuel Prices Hold the Key to United Airlines’ Margins
United Airlines still needs fuel prices to ease enough for record revenue to turn into wider margins. Management expects unit cost growth excluding fuel to step down from its third-quarter peak, and the carrier is preparing for elevated energy prices through next year.
Strong demand gives United Airlines stock a solid ground, yet jet fuel remains a cost the company can’t control. UAL stock position sizes should stay modest until the fuel cost outlook resolves.
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United Airlines (UAL.O) CEO Scott Kirby said on Wednesday the carrier expects fuel prices to remain elevated throughout 2027.
Kirby said achieving United's goal of double-digit pretax margins next year would probably require lower fuel costs, slower industry capacity growth or airlines continuing to prioritize higher fares over fuller planes.
The Iran war has disrupted oil and jet fuel shipments from the Middle East, while attacks on energy infrastructure have further strained supplies. Restoring production and rebuilding depleted fuel inventories could take months, even if the fighting eases.
Kirby's warning came a day after United forecast fourth-quarter profit well below Wall Street expectations, despite sharply higher ticket prices.
The airline recovered only 72% of its additional fuel costs through revenue gains in the third quarter. On the company's earnings call, Kirby said industry capacity appeared set to accelerate next year. More seats could weaken airlines' pricing power, making it harder to raise fares enough to close that gap.
HIGHER FARES, PERSISTENT FUEL PRESSURE
United expects to pay about $4.80 a gallon for fuel in the fourth quarter. US jet fuel spot prices stood at $4.77 a gallon on Tuesday, according to the Argus US Jet Fuel Index published by Airlines for America.
United Chief Financial Officer Mike Leskinen said the carrier expects to recover a similar proportion of its higher fuel costs in the fourth quarter as in the third, below the full recovery it had previously anticipated.
The company aims to recover all additional fuel costs through revenue gains in 2027, but executives acknowledged that fare increases take time to catch up with rising fuel prices.
Kirby said United's investments in products and technology should boost revenue next year, but those gains alone would probably not be enough to achieve double-digit pretax margins.
United said it was scrutinizing capacity on every flight and in every market and would remain flexible in setting its 2027 schedule.
Rival Delta Air Lines (DAL.N) warned earlier this month that airlines may need to restrain flight growth next year to sustain higher fares and protect profitability.
United Airlines CEO Scott Kirby is facing criticism over his support for a national wealth tax and inheritance taxes approaching 100%, with a senior Justice Department official joining the backlash by taking a jab at the airline's service.
Harmeet K. Dhillon, assistant attorney general for the Justice Department's Civil Rights Division, weighed in on the controversy with a post on X about her recent experience flying United.
"The WiFi didn’t work on my last two flights," Dhillon wrote.
Her comment followed Kirby's remarks in a recent interview with The New York Times, in which he warned that growing wealth inequality poses a "danger" to American society.
UNITED CEO SILENT ON $32M COMPENSATION AFTER CALLING WEALTH GAP A ‘DANGER’
Harmeet K. Dhillon speaks at the IAC National Summit 2026 at The Diplomat Beach Resort on January 17, 2026, in Hollywood, Florida.
"We should have a national wealth tax — it won’t work by state because people will just move," Kirby told the Times. "And I think we should have inheritance taxes that get close to 100 percent at some level. I would pay them."
Scott Kirby, chief executive officer at United Airlines Holdings Inc., during a Bloomberg Television interview at Newark Liberty International Airport (EWR) in Newark, New Jersey, US, on Tuesday, Aug. 25, 2026. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
Kirby's position has also drawn attention to his own compensation. The United CEO received about $32.3 million in total compensation in fiscal year 2025, including salary, stock awards and performance incentives. That was roughly 334 times the $96,670 median employee compensation reported by the airline, according to United's 2026 proxy statement.
FORMER UNITED EXECUTIVE EXPLAINS HOW NEW JERSEY FIBER CUT DISRUPTED NORTHEAST FLIGHTS
Beyond his tax proposals, Kirby also addressed United's pricing practices during the interview, defending the airline's decision to charge passengers more for certain seating options.
"There are some customers who want to sit in a window seat or a better seat, and that costs money to deliver," Kirby said.
A United Airlines Boeing 757 departs from Los Angeles International Airport en route to New York on Sept. 19, 2024, in Los Angeles, California. (Kevin Carter/Getty Images / Getty Images)
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His comments prompted criticism from some social media users, with some threatening to stop flying United and others urging Kirby to focus on ticket prices and customer service.
One user wrote that Kirby should focus on "Flight safety, price, timeliness," adding, "How about we start with not charging $500 for basic 2 hour domestic routes?"
FOX Business' Stepheny Price contributed to this report.
United Airlines is set to open its biggest airport lounge this week, which it says is the largest in the Americas, as airlines continue to plow money into the facilities for high-spending customers.
The 54,000-square-foot lounge is opening Thursday at George Bush Intercontinental Airport's Terminal B in Houston, part of an overhaul of the facility that includes 22 gates for mainline aircraft.
The airport, with more than 500 departures a day, is United's main connecting hub for flights to and from Latin America.
The new club can seat 800 people and features an outdoor terrace for plane-spotting as well as two full-service bars and buffets.
The lounge, part of United's $2.6 billion investment at the airport's Terminal B, shows how airlines are putting more money into larger spaces for premium-travel demand to attract the growing ranks of elite frequent flyers, co-branded credit card holders and customers just willing to spend more to fly.
American Airlines earlier this month said it is planning its largest-ever lounge at its Charlotte Douglas International Airport hub in North Carolina. Delta Air Lines has expanded both its popular Delta Sky Clubs and its top-tier Delta One Lounges.
Southwest Airlines is building its first-ever network of airport lounges, which are tied to its credit card partner, Chase. Last week, the carrier unveiled mock-ups of the lounges, which it is calling Icon. And JetBlue Airways opened lounges in New York and Boston in the past year.
Read more CNBC airline newsWhy airfare could rise even more, but airline profits won’tBudget airline king Bill Franke warms to premium upgradesCompanies spurn airlines’ cheapest business class ticketsUnited’s next decision: What to do with all those Boeing 737 Max 10 seats it ordered years agoRecord heat, crowds drive offseason boom in international travel
United Airlines Holdings Inc (NASDAQ:UAL, XETRA:UAL1) expects revenue growth to accelerate as customer demand strengthens despite a sharp rise in fuel costs.
The airline said it expects fourth-quarter revenue growth to exceed 20% year on year, accelerating from the 17% increase recorded in the third quarter as demand and customer spending remain strong.
The company reported record third-quarter operating revenue of $17.9 billion, while revenue per available seat mile, a measure of how much revenue an airline generates from its capacity, rose 16% year on year.
United recorded pre-tax earnings of $1.3 billion and a pre-tax margin of 7.3% for the three months to September, while adjusted pre-tax earnings reached $1.1 billion, with an adjusted margin of 6.2%.
Diluted earnings per share came to $3.14, while adjusted diluted earnings per share were $2.54, within the company's guidance despite a 62% increase in fuel expense.
Fuel costs rose by $1.8 billion compared with the third quarter of 2025, reflecting continued volatility in jet fuel prices.
Revenue growth extended across United's main business segments, with premium cabin revenue rising 17%, Basic Economy revenue increasing 16%, loyalty revenue climbing 17% and cargo revenue advancing 23%.
Contracted business revenue increased 26% year on year, while economy cabin revenue grew for a third consecutive quarter, with unit revenue up 17%.
United carried a record 49.5 million customers during the quarter and recorded the lowest seat cancellation rate among the three largest US airlines.
The carrier is also expanding its Starlink satellite internet service, which was installed on more than 640 aircraft and used by more than 5.4 million customers during September.
United expects Starlink availability to reach 61% of its flights by the end of 2026, rise to 87% by 1 June and extend across its entire fleet by the end of 2027.
The airline is investing in airport facilities and onboard services to attract and retain customers, including a new concourse at Houston's George Bush Intercontinental Airport and planned modernisation at Washington Dulles International Airport.
United also expanded its revolving credit facility, increasing available liquidity from $3 billion to $5 billion as it seeks to strengthen its balance sheet and achieve an investment-grade credit rating.
Key Takeaways United Airlines' Q3 adjusted EPS fell 8.6% to $2.54, missing estimates, while revenues rose 17.4%.UAL's fuel expenses surged 61.6% to $4.84 billion, pushing operating costs up 18.8% and squeezing margins.United Airlines expects Q4 revenue growth to exceed 20%, with adjusted EPS projected at 50 cents to $1.50.
United Airlines Holdings, Inc. (UAL - Free Report) reported third-quarter 2026 adjusted earnings of $2.54 per share, down 8.6% year over year and below the Zacks Consensus Estimate of $2.60 by 2.3%. Higher fuel expenses weighed on profitability despite strong revenue growth.
Operating revenues rose 17.4% year over year to $17.88 billion but missed the consensus mark of $17.91 billion by 0.2%. A 15.9% increase in total revenue per available seat mile or TRASM, supported the top line, driven by strength across premium, loyalty and contracted business revenues.
United Airlines Holdings Inc Price, Consensus and EPS Surprise United Airlines Holdings Inc price-consensus-eps-surprise-chart | United Airlines Holdings Inc Quote
UAL Benefits From Broad-Based Passenger Revenue GrowthPassenger revenues increased 17.6% year over year to $16.24 billion. Domestic passenger revenues advanced 19.9% year over year, while international passenger revenues rose 14.3%. Latin America revenues rose 24.2% year over year, Pacific revenues climbed 16.5% and Atlantic revenues improved 10.1% year over year.
Within the Atlantic region, Europe revenues increased 13.3% year over year, partly offset by a 17.3% decline in the Middle East, India and Africa region. Cargo revenues jumped 22.9% year over year to $529 million, while other operating revenues grew 12.9% to $1.11 billion.
Premium revenues rose 17% year over year, while Basic Economy and loyalty revenues increased 16% and 17%, respectively. Contracted business revenues advanced 26% year over year, reflecting resilient close-in demand. Economy cabin unit revenues improved 17% year over year.
United Airlines Sees Higher Yields Despite Softer TrafficConsolidated passenger revenue per available seat mile increased 16.1% year over year, while passenger yield climbed 16.8%. Domestic PRASM advanced 14.5% year over year, while international PRASM grew 17.4%, reflecting strong revenue performance across the network.
Traffic, measured in revenue passenger miles, increased 0.7% year over year, while capacity expanded 1.3%. As capacity growth outpaced traffic, the consolidated load factor declined 0.5 percentage points to 83.9%.
United Airlines transported a record 49.5 million passengers, up 2.4% year over year from the prior-year period. Domestic load factor declined 0.9 points to 84.4%, while international load factor remained nearly unchanged at 83.2%.
UAL Faces Rising Fuel and Operating ExpensesOperating expenses increased 18.8% year over year to $16.43 billion, outpacing revenue growth. Aircraft fuel expenses surged 61.6% year over year to $4.84 billion as the average fuel price increased 60.3% to $3.90 per gallon. Fuel consumption rose 0.8% year over year.
Cost per available seat mile increased 17.3% year over year to 18.56 cents. CASM-ex, which excludes fuel, profit sharing, special items and third-party business expenses, rose 7.8% year over year to 13.09 cents.
Salaries and related costs increased 8.9% year over year to $4.96 billion. Distribution expenses climbed 13.9% year over year, while landing fees and other rent rose 4.4%. Aircraft maintenance expenses increased 3.5% year over year.
United Airlines Reports Lower Adjusted ProfitabilityAdjusted operating income declined 6.9% year over year to $1.23 billion, while the adjusted operating margin contracted 1.8 percentage points to 6.9%. Adjusted pre-tax income fell 8.7% to $1.11 billion, with the adjusted pre-tax margin narrowing to 6.2% from 8%.
Adjusted net income decreased 8.4% year over year to $833 million. On a reported basis, net income increased 8.5% year over year to $1.03 billion, while earnings rose to $3.14 per share from $2.90.
The difference between reported and adjusted results reflected special credits, primarily associated with gains from aircraft sale-leaseback transactions.
UAL Sees Cash Flow Pressure, Maintains LiquidityOperating cash flow totaled $465 million during the third quarter compared with $1.22 billion a year ago. Free cash flow was negative $1.84 billion compared with negative $153 million in the prior-year period.
Adjusted capital expenditures totaled $2.19 billion, reflecting continued fleet and infrastructure investments. Available liquidity ended the quarter at $17.7 billion.
Cash and cash equivalents totaled $6.65 billion, while short-term investments were $8.01 billion. Debt, finance lease obligations and other financial liabilities were $26.40 billion. Trailing-12-month net leverage stood at 2.4 times.
United Airlines Expects Revenue Momentum in Q4United Airlines expects fourth-quarter 2026 adjusted earnings between 50 cents and $1.50 per share (Zacks Consensus Estimate of $1.75 lies above the guided range), assuming an all-in average fuel price of approximately $4.80 per gallon.
Management expects fourth-quarter revenue growth to accelerate from the third quarter, exceeding 20% year over year. Unit revenue growth is also expected to accelerate, while unit cost growth excluding fuel is projected to moderate.
Adjusted capital expenditures are forecast at approximately $7.5 billion for 2026.
United Airlines' fleet plan calls for 1,166 mainline aircraft and 441 regional aircraft by year-end. The airline has installed Starlink on more than 640 aircraft and expects fleet-wide availability by the end of 2027.
Currently, UAL has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Performance of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported third-quarter 2026 earnings (excluding 57 cents from non-recurring items) of $1.72 per share, missing the Zacks Consensus Estimate of $1.80 by 4.44%. Earnings increased year over year despite sharply higher fuel costs and rising non-fuel expenses.
Adjusted revenues climbed 16% year over year to $17.59 billion but missed the consensus estimate of $17.74 billion by 0.9%. Broad demand strength and healthy yields lifted adjusted total revenue per available seat mile, or TRASM, 15%, while premium and diversified revenue streams continued to expand.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported third-quarter 2026 earnings of $1.82 per share, up 3.4% from $1.76 a year ago. The figure beat the Zacks Consensus Estimate of $1.81 by 0.6%.
Operating revenues climbed 20.4% year over year to $3.68 billion and surpassed the consensus mark of $3.56 billion by 3.2%. Stronger pricing, an 8% increase in Intermodal loads and higher brokerage volumes supported growth. However, elevated driver-related expenses, fuel costs and insurance claims pressured profitability.
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company had reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.
Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion by 0.1%. Revenue per available seat mile, or RASM, rose 11.7%, supported by strong yields, premium demand and loyalty revenues.
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Q3 diluted earnings per share were $3.14; Q3 adjusted diluted earnings per share1 were $2.54, within guidance despite a 62% increase in fuel expense
Q3 total operating revenue of $17.9 billion rose 17% year-over-year and set an all-time record; Q3 total revenue per available seat mile up 16% year-over-year, representing best quarterly unit revenue growth since the pandemic
United expects Q4 total operating revenue growth to accelerate versus Q3 and set another record with an over 20% year-over-year increase
Starlink Wi-Fi emerges as a meaningful differentiator, installed on more than 640 aircraft. Starlink is now available on about half of all United flights, including regional flights. Availability is expected to reach 61% by the end of 2026, 87% by June 1, and available fleet-wide by the end of 2027
United's newest aircraft, the Airbus A321XLR, named "Born to Explore," debuted with domestic service in September
United's operational momentum continued, posting the lowest seat cancellation rate among the three largest U.S. airlines during the quarter. United carried a record 49.5 million customers during Q3, recording six of its 10 highest-volume travel days for the year so far
, /PRNewswire/ -- United Airlines (UAL) today reported pre-tax earnings of $1.3 billion, with a pre-tax margin of 7.3%. Adjusted pre-tax earnings1 were $1.1 billion, with an adjusted pre-tax margin1 of 6.2%. Fuel expense was up $1.8 billion compared to third-quarter 2025 as jet fuel prices remained volatile.
"Our employees met the challenge of our ever-changing environment and our results prove the resilience of focusing on building a brand-loyal airline for customers," said United CEO Scott Kirby.
United continued to see broad-based strength across all revenue streams: compared to the third quarter of 2025, Premium revenue was up 17%, revenue from Basic Economy was up 16%, loyalty revenue was up 17% and cargo revenue was up 23%. Contracted business revenue was up 26% during the quarter compared to the third quarter of 2025, showing strong and resilient close-in demand across all industries. Economy cabin revenue grew for the third consecutive quarter, with unit revenue up 17% year-over-year.
United now offers Starlink on more than 640 aircraft, equipping approximately three more aircraft per day. United offers more daily Starlink flights now than the entire U.S. industry, further increasing United's competitive advantage. In September, more than 5.4 million United customers experienced Starlink. United expects it to be available fleet-wide by the end of 2027.
"We are winning new long-term, brand-loyal United customers because they are trying us for Starlink but staying with us for the industry-leading app, great service, on-board product and technology," Kirby said. "These advantages will persist long after the fast, low-Earth orbit Wi-Fi we are offering today becomes the industry standard. By then, United will be leading on the next innovation as we seek to sustain our lead with customers."
On September 17 United announced that travelers can now watch live professional and college football on their Starlink-enabled seatback screens, including live broadcasts from all networks that carry NFL games. Starlink is free for MileagePlus® members in every class of service.
Ongoing customer investments include the new concourse in Terminal B at Houston's George Bush Intercontinental Airport. The United ClubSM in the new, three-level concourse is the largest airline club in the Americas, with seating for 800 people and an outdoor terrace. During the quarter United also unveiled modernization plans for Washington Dulles International Airport together with the Metropolitan Washington Airports Authority and the U.S. Department of Transportation, with new and expanded airport facilities expected to support more flights.
For the third quarter of 2026, United achieved its highest third-quarter customer satisfaction rate as measured by net promoter score since 2022. Customer service scores on Starlink-equipped planes were nearly double those with other Wi-Fi service, and United achieved with the best scores in company history in a third quarter for inflight entertainment and Wi-Fi experience.
On October 16, United expanded its revolving credit facility, with available liquidity rising from $3 billion previously to $5 billion under the new facility. The favorable terms in this expanded revolving credit facility demonstrate United's continued focus on strengthening its balance sheet and achieving an investment-grade credit rating.
Third-Quarter Financial Results
Capacity up 1.3% compared to third-quarter 2025. Total operating revenue of $17.9 billion, up 17.4% compared to third-quarter 2025. TRASM up 15.9% compared to third-quarter 2025. CASM up 17.3%, and CASM-ex1 up 7.8%, compared to third-quarter 2025. Pre-tax earnings of $1.3 billion, with a pre-tax margin of 7.3%; adjusted pre-tax earnings1 of $1.1 billion, with an adjusted pre-tax margin1 of 6.2%. Net income of $1.0 billion; adjusted net income1 of $833 million. Diluted earnings per share of $3.14; adjusted diluted earnings per share1 of $2.54. Average fuel price per gallon of $3.90. Ending available liquidity2 of $17.7 billion. Total debt, finance lease obligations and other financial liabilities of $26.4 billion at quarter end. Trailing twelve months net leverage1 of 2.4x. Key Highlights
Announced the largest-ever international network expansion with service to 10 new destinations planned to start in summer 2027, including Catania, Italy; Ibiza, Spain; Ljubljana, Slovenia; Luxembourg; Marseille, France; Okinawa, Japan; Olbia, Italy; Terceira, Portugal; Toulouse, France; and Valencia, Spain. All new routes are subject to government approval. Operated the largest domestic schedule in company history, serving 241 airports across the U.S. and Canada, the most of any carrier in the quarter. In an agreement with DISH, launched live TV streaming on aircraft with Starlink-enabled seatback screens, unlocking professional and college football viewership in the air. Made aviation and sports broadcast history in collaboration with Disney Advertising, with an ESPN Football Fantasy Draft livestream from a flight, powered by Starlink. Customer Experience
In August, United introduced 10 new, exclusive meals in United Polaris® cabins in collaboration with Chef's Table. Over 87% of customers used digital check-in — with the increase driven by international customers — thanks to continued enhancements such as Japanese language translations within the app. Awarded by Tom's Guide's for "Best of Travel" for the implementation of Starlink, which it called a "masterclass in passenger experience." Expanded digital travel notifications in 11 more international markets, bringing real-time trip communications to customers in 33 total markets in their preferred channels and languages. Worked with Aperture Cellars to blend a wine at 35,000 feet, expected to be featured on select flights in United Polaris in 2028. Launched Flight Finder, giving customers whose travel was disrupted more control over rebooking options and a faster path to recovery. Operations
Averaged approximately 538,000 daily customers during the quarter, recording six of its 10 highest-volume travel days for the year so far. United carried a record 49.5 million revenue customers during the quarter. Ranked among the most reliable U.S. carriers this summer, with the lowest seat cancellation rate among the three largest U.S. airlines as measured by available seat miles. Posted the best July on-time departure rate among the seven largest U.S. carriers despite historic weather disruptions. July was United's busiest month ever, with 18.4 million customers carried. Completed a four-year expansion of the Denver Flight Training Center, adding 40 flight simulators for a total of 86, and enabling training for 860 pilots daily. Transported more than 352 million pounds of cargo during the quarter, for the largest third quarter in company history. Network
Announced additional summer 2027 service on four international routes: Los Angeles-Osaka, Washington Dulles-Milan, Denver-Paris, and San Francisco-Tel Aviv. Resumed service from Newark to Tel Aviv in early September. Launched nonstop service from Newark to Seoul and four new domestic routes from Newark: Bentonville, Arkansas; Charlottesville, Virginia; Knoxville, Tennessee; and Omaha, Nebraska. Expanded 787-9 Elevated service from San Francisco to Zurich and Seoul, joining Singapore and London routes that were introduced in the second quarter of 2026. These premium configured aircraft features 99 total premium seats including 8 United Polaris Studio℠ suites and 56 United Polaris seats. Employees, Communities and Investments
Launched the "Wishes Snackbox" with Make-A-Wish, featuring original art and hand-selected snacks from Wish kids. United will donate $1 for each box sold, up to $250,000. Kicked off United's Season of Service, with 3,100 employees volunteering 9,000 hours at nonprofits worldwide and packing nearly 471,000 meals to commemorate the 25th anniversary of 9/11. Contributed more than 40 million donated MileagePlus miles, including 18 million for Airlink and World Central Kitchen, to support 20 global response and recovery efforts. With partners, transported more than 200 responders and 30,000 pounds of cargo, supported 43 NGOs, reached more than 722,000 people and saved the NGO community more than $410,000. United and its employees raised $1.3 million for Special Olympics through the annual Plane Pull competition. Invested in the future aviation workforce through United's inaugural Discovery Day, in collaboration with the Boys & Girls Clubs of Chicago, and annual Girls in Aviation Day. The two events connected 860 young people at 27 events across six hubs, 20 line stations and United headquarters with hands-on experiences in technology, customer experience and corporate functions. Earnings Call
UAL will hold a conference call to discuss third-quarter 2026 financial results, as well as its financial and operational outlook for the fourth quarter 2026 and beyond, on Wednesday, October 21, 2026, at 9:30 a.m. CDT/10:30 a.m. EDT. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website.
Outlook
This press release should be read in conjunction with the company's Investor Update issued in connection with this quarterly earnings announcement, which provides additional information on the company's business outlook (including certain financial and operational guidance) and is furnished with this press release to the U.S. Securities and Exchange Commission on a Current Report on Form 8-K. The Investor Update is also available at ir.united.com. Management will also discuss certain business outlook items, including certain financial targets for the fourth quarter 2026 and beyond, during the quarterly earnings conference call.
The company's business outlook is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. Please see the section entitled "Cautionary Statement Regarding Forward-Looking Statements."
About United
At United, Good Leads The Way. With hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".
Website and Social Media Information
We routinely post important news and information regarding United on our corporate website, www.united.com, and our investor relations website, ir.united.com. We use our investor relations website as a primary channel for disclosing key information to our investors, including the timing of future investor conferences and earnings calls, press releases and other information about financial performance (including financial guidance), reports filed or furnished with the U.S. Securities and Exchange Commission, information on corporate governance and details related to our annual meeting of shareholders. We may use our investor relations website as a means of disclosing material, non-public information (including financial guidance) and for complying with our disclosure obligations under Regulation FD. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted. We may also use social media channels to communicate with our investors and the public about our company and other matters, and those communications could be deemed to be material information. Our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest to our investors or could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.
Cautionary Statement Regarding Forward-Looking Statements:
This press release and the related attachments and Investor Update (as well as the oral statements made with respect to information contained in this release and the attachments) contain certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to, among other things, goals, plans and projections regarding the company's financial position, results of operations, capital allocation and investments, market position, airline capacity, fleet plan strategy, fares, announced routes (which may be subject to government approval), booking trends, product development, corporate citizenship-related strategy initiatives and business strategy. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about the company's future financial results, goals, plans, commitments, strategies and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond the company's control and could cause the company's future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals," "targets," "pledge," "confident," "optimistic," "dedicated," "positioned," "on track", "path" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.
Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.
Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: execution risks associated with our strategic operating plan; changes in our fleet and network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into aircraft orders on less favorable terms, as well as any inability to accept or integrate new aircraft into our fleet as planned, including as a result of any mandatory groundings of aircraft; any failure to effectively manage, and receive anticipated benefits and returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions, or related exposures to unknown liabilities or other issues or underperformance as compared to our expectations; adverse publicity, increased regulatory scrutiny, harm to our brand, reduced travel demand, potential tort liability and operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners or another airline; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity, including as a result of alliances, joint business arrangements or other consolidations; unfavorable developments affecting our MileagePlus loyalty program our reliance on a limited number of suppliers to source a majority of our aircraft, engines and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; unfavorable economic and political conditions in the United States and globally; reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; extended interruptions or disruptions in service at major airports where we operate and space, facility and infrastructure constraints at our hubs or other airports (including as a result of government shutdowns); geopolitical conflict, terrorist attacks or security events (including the suspension of our overflying in Russian airspace as a result of the Russia-Ukraine military conflict and interruptions of our flying as a result of the military conflicts across the globe, as well as any escalation of the broader economic consequences of any conflicts beyond their current scope or a delay in any planned resumption of service to area impacted by conflict); any damage to our reputation or brand image; disruptions to our regional network and United Express flights provided by third-party regional carriers; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, these technologies or systems; increasing privacy, data security and cybersecurity obligations or a significant data breach; increased use of social media platforms by us, our employees and others; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions as well as increased employee and retiree health, pension, labor or regulatory compliance costs on our operations or financial performance; any failure to recruit, hire, develop or retain skilled personnel, including our senior management team or other key employees; the monetary and operational costs of compliance with extensive government regulation of the airline industry; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or agreement relating to these actions; costs, liabilities and risks associated with environmental regulation and climate change; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel, including as a result of the geopolitical conflicts in the Middle East and in other regions; the impacts of our significant amount of financial leverage from fixed obligations and the impacts of insufficient liquidity on our financial condition and business; failure to comply with financial and other covenants governing our debt; limitations on our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; fluctuations in the price of our common stock; the impacts of seasonality, and other factors associated with the airline industry; increases in insurance costs or inadequate insurance coverage; risks relating to our repurchase program for shares of United Airlines Holdings, Inc.'s common stock and certain warrants; and other risks and uncertainties set forth in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 and in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Quarterly Report on Form 10-Q for the period ended June 30, 2026, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.
Non-GAAP Financial Information:
In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the company's underlying financial performance and trends and facilitate comparisons among current, past and future periods. Non-GAAP financial measures typically have exclusions or adjustments that include one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded because the company believes they neither relate to the ordinary course of the company's business nor reflect the company's underlying business performance.
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The company does not provide a reconciliation of forward-looking measures where the company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the company's control or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Please refer to the tables accompanying this release for a description of the non-GAAP adjustments and reconciliations of the historical non-GAAP financial measures used to the most comparable GAAP financial measure and related disclosures.
-tables attached-
UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
Three Months Ended
September 30,
%
Increase/
(Decrease)
Nine Months Ended
September 30,
%
Increase/
(Decrease)
(In millions, except for percentage changes and per share
data)
2026
2025
2026
2025
Operating revenue:
Passenger revenue
$ 16,241
$ 13,815
17.6
$ 45,507
$ 39,512
15.2
Cargo revenue
529
431
22.9
1,478
1,290
14.7
Other operating revenue
1,106
979
12.9
3,170
2,872
10.4
Total operating revenue
17,875
15,225
17.4
50,156
43,673
14.8
Operating expense:
Salaries and related costs
4,961
4,555
8.9
14,209
13,123
8.3
Aircraft fuel
4,843
2,997
61.6
12,993
8,473
53.3
Landing fees and other rent
1,046
1,002
4.4
3,050
2,836
7.6
Aircraft maintenance materials and outside repairs
806
779
3.5
2,565
2,374
8.0
Depreciation and amortization
777
730
6.4
2,295
2,191
4.8
Regional capacity purchase
725
686
5.7
2,160
2,012
7.3
Distribution expenses
632
555
13.9
1,799
1,538
16.9
Aircraft rent
116
54
NM
311
172
80.4
Special charges (credits)
(215)
(73)
NM
(749)
266
NM
Other operating expenses
2,739
2,546
7.6
7,984
7,359
8.5
Total operating expense
16,429
13,830
18.8
46,617
40,345
15.5
Operating income
1,446
1,395
3.6
3,539
3,328
6.4
Nonoperating income (expense):
Interest expense
(359)
(331)
8.3
(1,029)
(1,048)
(1.9)
Interest income
157
142
10.1
440
473
(6.9)
Interest capitalized
56
53
5.1
169
152
11.7
Unrealized gains (losses) on investments, net
(13)
(13)
NM
13
(8)
NM
Miscellaneous, net
24
9
NM
74
86
(12.9)
Total nonoperating expense, net
(135)
(141)
(4.1)
(331)
(346)
(4.4)
Income before income taxes
1,311
1,255
4.5
3,208
2,981
7.6
Income tax expense
282
306
(7.8)
675
672
0.5
Net income
$ 1,029
$ 949
8.5
$ 2,533
$ 2,309
9.7
Earnings per share, diluted
$ 3.14
$ 2.90
8.3
$ 7.74
$ 7.02
10.3
Diluted weighted-average shares outstanding
327.4
326.9
0.2
326.9
329.0
(0.6)
NM-Greater than 100% change or otherwise not meaningful.
UNITED AIRLINES HOLDINGS, INC.
PASSENGER REVENUE INFORMATION AND STATISTICS (UNAUDITED)
Information is as follows (in millions, except for percentage changes):
3Q 2026
Passenger
Revenue
Passenger
Revenue
vs.
3Q 2025
Passenger
Revenue
per
Available
Seat Mile
("PRASM")
vs. 3Q 2025
Yield vs. 3Q
2025
Available
Seat Miles
("ASMs")
vs.
3Q 2025
3Q 2026
ASMs
3Q 2026
Revenue
Passenger
Miles
("RPMs")
Domestic
$ 9,708
19.9 %
14.5 %
15.7 %
4.7 %
48,854
41,241
Europe
3,324
13.3 %
15.8 %
16.7 %
(2.1 %)
18,663
15,774
Middle East/India/Africa
287
(17.3 %)
30.3 %
30.9 %
(36.5 %)
1,451
1,235
Atlantic
3,611
10.1 %
16.9 %
17.8 %
(5.8 %)
20,114
17,009
Pacific
1,583
16.5 %
10.9 %
10.8 %
5.0 %
11,633
9,130
Latin America
1,339
24.2 %
30.5 %
27.4 %
(4.9 %)
7,937
6,898
International
6,533
14.3 %
17.4 %
17.4 %
(2.7 %)
39,684
33,037
Consolidated
$ 16,241
17.6 %
16.1 %
16.8 %
1.3 %
88,538
74,278
Select operating statistics are as follows:
Three Months Ended
September 30,
%
Increase/
(Decrease)
Nine Months Ended
September 30,
%
Increase/
(Decrease)
2026
2025
2026
2025
Passengers (thousands) (a)
49,527
48,382
2.4
140,705
135,374
3.9
RPMs (millions) (b)
74,278
73,769
0.7
210,428
203,374
3.5
ASMs (millions) (c)
88,538
87,417
1.3
253,516
246,919
2.7
Passenger load factor: (d)
Consolidated
83.9 %
84.4 %
(0.5)
pts.
83.0 %
82.4 %
0.6
pts.
Domestic
84.4 %
85.4 %
(0.9)
pts.
83.3 %
83.3 %
—
pts.
International
83.2 %
83.3 %
—
pts.
82.6 %
81.2 %
1.4
pts.
PRASM (cents)
18.34
15.80
16.1
17.95
16.00
12.2
Total revenue per available seat mile ("TRASM") (cents)
20.19
17.42
15.9
19.78
17.69
11.9
Average yield per RPM (cents) (e)
21.86
18.73
16.8
21.63
19.43
11.3
Cargo revenue ton miles (millions) (f)
936
890
5.2
2,746
2,663
3.1
Aircraft in fleet at end of period
1,575
1,486
6.0
1,575
1,486
6.0
Average stage length (miles) (g)
1,468
1,509
(2.7)
1,464
1,491
(1.8)
Employee headcount, as of September 30 (thousands)
117.9
111.9
5.4
117.9
111.9
5.4
Cost per ASM ("CASM") (cents)
18.56
15.82
17.3
18.39
16.34
12.5
CASM-ex (cents) (h)
13.09
12.15
7.8
13.36
12.53
6.6
Average aircraft fuel price per gallon
$ 3.90
$ 2.43
60.3
$ 3.65
$ 2.43
50.4
Fuel gallons consumed (millions)
1,243
1,233
0.8
3,555
3,488
1.9
(a)
The number of revenue passengers measured by each flight segment flown.
(b)
The number of scheduled miles flown by revenue passengers.
(c)
The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.
(d)
RPMs divided by ASMs.
(e)
The average passenger revenue received for each RPM flown.
(f)
The number of cargo revenue tons transported multiplied by the number of miles flown.
(g)
Average distance a flight travels weighted for size of aircraft.
(h)
CASM-ex is CASM less the impact of fuel expense, profit sharing, special charges and third-party business expenses. See NON-GAAP FINANCIAL INFORMATION for a reconciliation of CASM-ex to CASM, the most comparable GAAP measure.
UNITED AIRLINES HOLDINGS, INC.
2 NON-GAAP FINANCIAL INFORMATION
UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and non-GAAP financial measures. The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages, ratios and earnings per share amounts presented are calculated from the underlying amounts.
CASM-ex: CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel expense, and profit sharing. UAL believes that adjusting for special charges is useful to investors because those items are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, flight academy, ground handling and catering services for third parties, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel expense from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because it believes that this exclusion allows investors to better understand and analyze UAL's operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Adjusted EBITDA and Adjusted EBITDAR: We calculate Adjusted EBITDA by adding interest, taxes, depreciation and amortization to net income and adjusting for special charges, nonoperating unrealized (gains) losses on investments, net and nonoperating debt extinguishment and modification fees. UAL believes that adjusting for these items is useful to investors because they are not indicative of UAL's ongoing performance. Adjusted EBITDA is further adjusted by the fixed portion of operating lease expense to calculate Adjusted EBITDAR to provide investors with enhanced comparability to our peers and better reflect our performance.
Adjusted Capital Expenditures: UAL believes that adjusting capital expenditures for assets acquired through the issuance or modification of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures.
Free Cash Flow: We define free cash flow as the sum of net cash from operating activities and net cash from investing activities, adjusted for the net change in short-term investments and the net change in restricted cash. We believe adjusting for short-term investments and restricted cash activity provides investors a better understanding of the company's free cash flow generated by our core operations. We also believe our methodology provides investors with enhanced comparability to our peers and better reflects our performance.
Adjusted Total Debt and Adjusted Net Debt: Adjusted total debt is a non-GAAP financial measure that includes current and long-term debt, finance lease obligations and other financial liabilities, current and noncurrent operating lease obligations and noncurrent pension and postretirement obligations. Adjusted net debt is adjusted total debt minus cash, cash equivalents and short-term investments. UAL provides adjusted total debt and adjusted net debt because we believe these measures provide useful supplemental information for assessing the company's debt and debt-like obligation profile.
Net Leverage: Net leverage is a non-GAAP financial measure that is equal to adjusted net debt divided by trailing twelve month Adjusted EBITDAR. UAL provides net leverage because we believe it provides useful supplemental information for assessing the company's debt level. See the above descriptions of Adjusted Net Debt and Adjusted EBITDAR.
Three Months Ended
September 30,
%
Increase/
(Decrease)
Nine Months Ended
September 30,
%
Increase/
(Decrease)
CASM-ex (in cents, except for percentage changes)
2026
2025
2026
2025
CASM (GAAP)
18.56
15.82
17.3
18.39
16.34
12.5
Fuel expense
5.47
3.43
59.5
5.13
3.43
49.3
Profit sharing
0.17
0.26
(36.7)
0.12
0.19
(37.2)
Third-party business expenses
0.07
0.07
10.6
0.08
0.08
(3.1)
Special charges (credits)
(0.24)
(0.08)
NM
(0.30)
0.11
NM
CASM-ex (Non-GAAP)
13.09
12.15
7.8
13.36
12.53
6.6
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
Three Months Ended
September 30,
Nine Months Ended
September 30,
Twelve Months Ended
September 30,
Adjusted EBITDA and Adjusted EBITDAR (in millions)
2026
2025
2026
2025
2026
2025
Net income (GAAP)
$ 1,029
$ 949
$ 2,533
$ 2,309
$ 3,577
$ 3,295
Adjusted for:
Depreciation and amortization
777
730
2,295
2,191
3,044
2,950
Interest expense, net of capitalized interest and interest income
146
136
419
424
552
569
Income tax expense
282
306
675
672
956
994
Special charges (credits)
(215)
(73)
(749)
266
(757)
335
Nonoperating unrealized (gains) losses on investments, net
13
13
(13)
8
(26)
47
Nonoperating debt extinguishment and modification fees
—
20
6
20
6
39
Adjusted EBITDA (non-GAAP)
$ 2,032
$ 2,081
$ 5,165
$ 5,890
$ 7,350
$ 8,229
Adjusted EBITDA margin (non-GAAP)
11.4 %
13.7 %
10.3 %
13.5 %
11.2 %
14.1 %
Adjusted EBITDA (non-GAAP)
$ 2,032
$ 2,081
$ 5,165
$ 5,890
$ 7,350
$ 8,229
Fixed portion of operating lease expense
275
221
790
654
1,028
866
Adjusted EBITDAR (non-GAAP)
$ 2,308
$ 2,302
$ 5,955
$ 6,545
$ 8,379
$ 9,095
Three Months Ended
September 30,
Nine Months Ended
September 30,
Adjusted Capital Expenditures (in millions)
2026
2025
2026
2025
Capital expenditures, net of flight equipment purchase deposit returns
(GAAP)
$ 2,139
$ 1,464
$ 5,154
$ 3,984
Property and equipment acquired through the issuance or
modification of debt, finance leases and other financial liabilities
54
—
140
(52)
Operating leases converted to finance leases
—
417
66
417
Adjusted capital expenditures (Non-GAAP)
$ 2,193
$ 1,881
$ 5,360
$ 4,349
Three Months Ended
September 30,
Nine Months Ended
September 30,
Twelve Months Ended
September 30,
Free Cash Flow (in millions)
2026
2025
2026
2025
2026
2025
Net cash provided by operating activities (GAAP)
$ 465
$ 1,218
$ 6,874
$ 7,145
$ 8,160
$ 9,370
Net cash used in investing activities (GAAP)
(3,839)
(1,743)
(7,192)
(4,785)
(8,758)
(6,500)
Adjusted for:
Net change in short-term investments
1,534
337
1,707
893
1,405
1,247
Net change in restricted cash
(4)
35
(7)
36
(5)
74
Free cash flow (Non-GAAP)
$ (1,843)
$ (153)
$ 1,382
$ 3,289
$ 802
$ 4,191
September 30,
Increase/
(Decrease)
Adjusted Total Debt, Adjusted Net Debt and Net Leverage (in millions, except ratios)
2026
2025
Debt, finance lease obligations and other financial liabilities - current and noncurrent (GAAP)
$ 26,398
$ 25,428
$ 970
Operating lease obligations - current and noncurrent
7,897
5,894
2,003
Pension and postretirement liabilities - noncurrent
825
974
(148)
Adjusted total debt (Non-GAAP)
$ 35,120
$ 32,296
2,824
Less: Cash and cash equivalents
$ 6,648
$ 6,730
(81)
Short-term investments
8,005
6,599
1,405
Adjusted net debt (Non-GAAP)
$ 20,467
$ 18,967
1,500
Net leverage (Non-GAAP)
2.4
2.1
0.4
pts.
UNITED AIRLINES HOLDINGS, INC.
NON-GAAP FINANCIAL INFORMATION (Continued)
Three Months Ended
September 30,
%
Increase/
(Decrease)
Nine Months Ended
September 30,
%
Increase/
(Decrease)
(in millions, except for percentage changes and per
share data)
2026
2025
2026
2025
Operating expenses (GAAP)
$ 16,429
$ 13,830
18.8
$ 46,617
$ 40,345
15.5
Special charges (credits)
(215)
(73)
NM
(749)
266
NM
Operating expenses, excluding special charges
16,645
13,903
19.7
47,366
40,079
18.2
Adjusted to exclude:
Fuel expense
4,843
2,997
61.6
12,993
8,473
53.3
Profit sharing
146
228
(35.9)
296
459
(35.6)
Third-party business expenses
66
59
12.0
199
200
(0.5)
Adjusted operating expenses (Non-GAAP)
$ 11,589
$ 10,619
9.1
$ 33,878
$ 30,947
9.5
Operating income (GAAP)
$ 1,446
$ 1,395
3.6
$ 3,539
$ 3,328
6.4
Special charges (credits)
(215)
(73)
NM
(749)
266
NM
Adjusted operating income (Non-GAAP)
$ 1,231
$ 1,322
(6.9)
$ 2,790
$ 3,594
(22.4)
Operating margin
8.1 %
9.2 %
(1.1)
pts.
7.1 %
7.6 %
(0.6)
pts.
Adjusted operating margin (Non-GAAP)
6.9 %
8.7 %
(1.8)
pts.
5.6 %
8.2 %
(2.7)
pts.
Pre-tax income (GAAP)
$ 1,311
$ 1,255
4.5
$ 3,208
$ 2,981
7.6
Adjusted to exclude:
Special charges (credits)
(215)
(73)
NM
(749)
266
NM
Unrealized (gains) losses on investments, net
13
13
NM
(13)
8
NM
Debt extinguishment and modification fees
—
20
NM
6
20
NM
Adjusted pre-tax income (Non-GAAP)
$ 1,109
$ 1,215
(8.7)
$ 2,451
$ 3,276
(25.2)
Pre-tax margin (GAAP)
7.3 %
8.2 %
(0.9)
pts.
6.4 %
6.8 %
(0.4)
pts.
Adjusted pre-tax margin (Non-GAAP)
6.2 %
8.0 %
(1.8)
pts.
4.9 %
7.5 %
(2.6)
pts.
Net income (GAAP)
$ 1,029
$ 949
8.5
$ 2,533
$ 2,309
9.7
Adjusted to exclude:
Special charges (credits)
(215)
(73)
NM
(749)
266
NM
Unrealized (gains) losses on investments, net
13
13
NM
(13)
8
NM
Debt extinguishment and modification fees
—
20
NM
6
20
NM
Income tax expense (benefit) on adjustments,
net
6
—
NM
95
(127)
NM
Adjusted net income (Non-GAAP)
$ 833
$ 909
(8.4)
$ 1,871
$ 2,477
(24.5)
Diluted earnings per share (GAAP)
$ 3.14
$ 2.90
8.3
$ 7.74
$ 7.02
10.3
Adjusted to exclude:
Special charges (credits)
(0.66)
(0.22)
NM
(2.29)
0.81
NM
Unrealized (gains) losses on investments, net
0.04
0.04
NM
(0.04)
0.03
NM
Debt extinguishment and modification fees
—
0.06
NM
0.02
0.06
NM
Income tax expense (benefit) on adjustments,
net
0.02
—
NM
0.29
(0.39)
NM
Adjusted diluted earnings per share (Non-GAAP)
$ 2.54
$ 2.78
(8.6)
$ 5.72
$ 7.53
(24.0)
UNITED AIRLINES HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
September 30, 2026
(UNAUDITED)
December 31, 2025
ASSETS
Cash and cash equivalents
$ 6,648
$ 5,942
Short-term investments
8,005
6,298
Receivables, net
2,636
2,391
Aircraft fuel, spare parts and supplies, net
1,954
1,556
Prepaid expenses and other
746
671
Total current assets
19,988
16,857
Operating property and equipment, net
49,368
46,121
Operating lease right-of-use assets
6,992
4,958
Goodwill
4,527
4,527
Intangible assets, net
2,641
2,655
Investments in affiliates and other, net
1,604
1,330
Total noncurrent assets
65,132
59,591
Total assets
$ 85,120
$ 76,448
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$ 5,403
$ 4,567
Accrued salaries and benefits
3,007
3,900
Advance ticket sales
10,672
8,131
Frequent flyer deferred revenue
4,084
3,721
Current maturities of long-term debt, finance leases, and other financial liabilities
1,848
4,426
Current maturities of operating leases
934
631
Other
691
757
Total current liabilities
26,639
26,133
Long-term debt, finance leases, and other financial liabilities
24,550
20,562
Long-term obligations under operating leases
6,962
5,417
Frequent flyer deferred revenue
3,881
4,056
Pension and postretirement benefit liability
825
1,058
Deferred income taxes
3,093
2,463
Other
1,415
1,478
Total noncurrent liabilities
40,727
35,033
Total stockholders' equity
17,754
15,282
Total liabilities and stockholders' equity
$ 85,120
$ 76,448
UNITED AIRLINES HOLDINGS, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(in millions)
Nine Months Ended September
30,
2026
2025
Operating Activities:
Net cash provided by operating activities
$ 6,874
$ 7,145
Investing Activities:
Capital expenditures, net of flight equipment purchase deposit returns
(5,154)
(3,984)
Purchases of short-term and other investments
(7,583)
(6,454)
Proceeds from sale of short-term and other investments
5,779
5,654
Proceeds from sale of property and equipment
54
63
Other, net
(289)
(64)
Net cash used in investing activities
(7,192)
(4,785)
Financing Activities:
Proceeds from issuance of debt and other financial liabilities, net of discounts and fees
6,698
485
Payments of long-term debt, finance leases and other financial liabilities
(5,541)
(4,196)
Repurchases of common stock
(27)
(610)
Other, net
(98)
(114)
Net cash provided by (used in) financing activities
1,031
(4,436)
Net increase (decrease) in cash, cash equivalents and restricted cash
713
(2,075)
Cash, cash equivalents and restricted cash at beginning of the period
6,081
8,946
Cash, cash equivalents and restricted cash at end of the period (a)
$ 6,794
$ 6,871
Investing and Financing Activities Not Affecting Cash:
Right-of-use assets acquired or modified through operating leases
$ 2,488
$ 1,382
Property and equipment acquired through the issuance or modification of debt, finance leases and
other financial liabilities
140
(52)
Operating leases converted to finance leases
66
417
Investment interests received in exchange for loans, goods and services
60
16
(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets:
Cash and cash equivalents
$ 6,648
$ 6,730
Restricted cash in Investments in affiliates and other, net
146
141
Total cash, cash equivalents and restricted cash
$ 6,794
$ 6,871
UNITED AIRLINES HOLDINGS, INC.
NOTES (UNAUDITED)
Special charges (credits) and unrealized (gains) losses on investments, net include the following:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2026
2025
2026
2025
Operating:
Labor contract ratification bonuses
$ (2)
$ —
$ 182
$ 561
(Gains) losses on sale of assets and other special charges
(213)
(73)
(931)
(295)
Total operating special charges (credits)
(215)
(73)
(749)
266
Nonoperating:
Nonoperating unrealized (gains) losses on investments, net
13
13
(13)
8
Nonoperating debt extinguishment and modification fees
—
20
6
20
Total nonoperating special charges and unrealized (gains) losses on investments, net
13
33
(8)
28
Total operating and nonoperating special charges (credits) and unrealized (gains) losses
on investments, net
(202)
(40)
(757)
295
Income tax expense (benefit), net of valuation allowance
6
—
95
(127)
Total operating and nonoperating special charges (credits) and unrealized (gains) losses
on investments, net of income taxes
$ (197)
$ (40)
$ (662)
$ 168
During the nine months ended September 30, 2026, the company recorded $182 million of expense associated with the recently ratified agreements with the company's flight attendants represented by the Association of Flight Attendants ("AFA") and the company's fleet technical instructors, storekeepers, maintenance instructors and security officers represented by the International Association of Machinists and Aerospace Workers. During the nine months ended September 30, 2025, the company recorded a $561 million special charge in connection with the then-existing tentative agreement with its flight attendants represented by the AFA.
During the three and nine months ended September 30, 2026, the company recorded $213 million and $931 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $294 million and $1.1 billion, respectively, of gains on various aircraft sale-leaseback transactions. During the three and nine months ended September 30, 2025, the company recorded $73 million and $295 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $75 million and $336 million, respectively, of gains on various aircraft sale-leaseback transactions.
The company's effective tax rates were as follows:
Three Months Ended September
30,
Nine Months Ended September
30,
2026
2025
2026
2025
Effective tax rate
21.5 %
24.4 %
21.0 %
22.5 %
The provision for income taxes is based on the estimated annual effective tax rate, which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items. The decrease in the effective tax rates in the three and nine months ended September 30, 2026, as compared to the same period in 2025, was primarily due to a release of valuation allowance related to realized capital gains.
1 For additional information about the non-GAAP financial measures used in this press release, see "Non-GAAP Financial Information" below.
2 Includes cash, cash equivalents, short-term investments and undrawn credit facilities.
United Airlines (UAL) posted a "mixed picture at best" with its earnings report, says Marley Kayden, signaling turbulent signs ahead for U.S. consumers. In the tech space, SpaceX (SPCX) beat on its top and bottom line while Netflix (NFLX) missed both.
United Airlines (UAL - Free Report) came out with quarterly earnings of $2.54 per share, missing the Zacks Consensus Estimate of $2.6 per share. This compares to earnings of $2.78 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.31%. A quarter ago, it was expected that this airline would post earnings of $1.92 per share when it actually produced earnings of $1.99, delivering a surprise of +3.65%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
United, which belongs to the Zacks Transportation - Airline industry, posted revenues of $17.88 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.2%. This compares to year-ago revenues of $15.23 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
United shares have lost about 14.5% since the beginning of the year versus the S&P 500's gain of 12.4%.
What's Next for United?While United has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for United was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.75 on $18.4 billion in revenues for the coming quarter and $7.87 on $68.03 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, JetBlue Airways (JBLU - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on October 27.
This airline is expected to post quarterly loss of $0.52 per share in its upcoming report, which represents a year-over-year change of -30%. The consensus EPS estimate for the quarter has been revised 46.7% lower over the last 30 days to the current level.
JetBlue Airways' revenues are expected to be $2.82 billion, up 21.5% from the year-ago quarter.
United Airlines (UAL - Free Report) reported $17.88 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 17.4%. EPS of $2.54 for the same period compares to $2.78 a year ago.
The reported revenue represents a surprise of -0.2% over the Zacks Consensus Estimate of $17.91 billion. With the consensus EPS estimate being $2.60, the EPS surprise was -2.31%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how United performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Passenger load factor - Consolidated: 83.9% versus the four-analyst average estimate of 85.6%.Total revenue per available seat mile (TRASM): 20.19 cents versus 20.17 cents estimated by three analysts on average.CASM-ex (excluding special charges, third-party business expenses, fuel, and profit sharing): 13.09 cents versus the three-analyst average estimate of 13.08 cents.ASMs (Available seat miles): 88.54 billion versus the three-analyst average estimate of 88.71 billion.Average aircraft fuel price per gallon: $3.90 versus the three-analyst average estimate of $3.92.RPMs (Revenue passenger miles): 74.28 billion versus the three-analyst average estimate of 76.32 billion.PRASM (Passenger revenue per available seat mile): 18.34 cents versus 18.37 cents estimated by three analysts on average.Fuel gallons consumed: 1,243.00 MGal compared to the 1,244.49 MGal average estimate based on two analysts.Average yield per RPM: 21.86 cents versus 21.59 cents estimated by two analysts on average.Operating revenue- Passenger revenue: $16.24 billion versus the four-analyst average estimate of $16.34 billion. The reported number represents a year-over-year change of +17.6%.Operating revenue- Other operating revenue: $1.11 billion versus the four-analyst average estimate of $1.07 billion. The reported number represents a year-over-year change of +13%.Operating revenue- Cargo: $529 million compared to the $504.22 million average estimate based on four analysts. The reported number represents a change of +22.7% year over year.View all Key Company Metrics for United here>>>
Shares of United have returned -16.4% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
United Airlines is slashing its profit forecast for the year as fuel costs continue to bite, but the carrier said passengers keep booking.
United said Tuesday that it expects to earn between 50 cents and $1.50 a share on an adjusted basis in the fourth quarter, well below the $1.76 a share Wall Street analysts expected. At the high end of that range, it would bring United's 2026 adjusted earnings to no more than $7.22 per share. In mid-July, United said it was expecting full-year earnings of $9 to $11 a share.
The carrier expects to pay an average of $4.80 a gallon for fuel in the fourth quarter, up from an average price of $3.90 a gallon in the third.
A surge in fuel prices this year has added billions of dollars to airlines' costs, eating into profits, despite strong demand, and driving up airfares.
Here is what United Airlines reported for the quarter that ended Sept. 30 compared with what Wall Street was expecting, based on estimates compiled by LSEG:
Earnings per share: $2.54 adjusted vs. $2.57 expectedRevenue: $17.88 billion vs. $17.9 billion expectedUnited's third-quarter net income rose 8.5% from a year earlier to $1.03 billion, or $3.14 a share. During the same period last year its net income totaled $949 million, or $2.90 a share.
"Our employees met the challenge of our ever-changing environment and our results prove the resilience of focusing on building a brand-loyal airline for customers," United CEO Scott Kirby said in an earnings release.
United's fuel bill rose close to 62% in the quarter from a year earlier to $4.84 billion.
Revenue for the three months ended Sept. 30 rose 17.4% from a year earlier to $17.88 billion, compared with $15.23 billion the year before.
Domestic passenger unit revenue rose 14.5% from a year earlier, while international unit revenue was up 17.4%, a sign of higher fares. Passengers continue to book, United said, with passenger counts up more than 2% from last year.
Adjusting for one-time items, United reported net income of $833 million or $2.54 a share.
Read more CNBC airline newsWhy airfare could rise even more, but airline profits won’tBudget airline king Bill Franke warms to premium upgradesCompanies spurn airlines’ cheapest business class ticketsUnited’s next decision: What to do with all those Boeing 737 Max 10 seats it ordered years agoRecord heat, crowds drive offseason boom in international travel
United Airlines (UAL.O) on Tuesday forecast fourth-quarter profit well below Wall Street estimates, despite expectations for record revenue, as soaring fuel costs threatened to offset gains from strong travel demand and higher ticket prices.
The Chicago-based carrier expects adjusted earnings of 50 cents to $1.50 per share for the December quarter. LSEG data shows an average analyst estimate of $1.76. The $1 midpoint of the carrier's outlook is 43% below expectations.
Even strong demand and sharply higher fares have been insufficient to shield airline profits from the fuel shock. US airfares rose an average of nearly 23% year-on-year in the seven months through September, government data showed.
United expects to pay $4.80 a gallon for jet fuel in the fourth quarter, about 45 cents more than the market consensus assumption. The difference translates into roughly $1 per share in earnings, the company said.
The carrier expects fourth-quarter revenue to grow more than 20% from a year earlier, accelerating from 17.4% growth in the September quarter, as demand remains strong.
FUEL SHOCK SQUEEZES PROFITS
Earlier this month, United's rival Delta Air Lines(DAL.N) cut its annual earnings forecast by nearly a quarter after projecting a $6 billion increase in its fuel bill from last year.
Delta CEO Ed Bastian warned that airlines may need to further restrain flight growth next year to sustain higher fares and protect profitability.
US airlines spent $42.9 billion on fuel in the first eight months of 2026, up $13.2 billion from a year earlier despite slightly lower consumption, government data showed.
In Europe, Ryanair CEO Michael O'Leary warned on Tuesday that airfares could rise as much as 20% next year as high fuel costs and reduced airline capacity squeeze the industry.
United's third-quarter fuel expense jumped 62%, or $1.85 billion, from a year earlier, even as capacity rose just 1.3%.
It reported third-quarter adjusted earnings of $2.54 per share, narrowly missing analysts' estimate of $2.57.
Contracted business revenue surged 26%, while premium revenue grew 17% and basic economy revenue increased 16%, reflecting broad-based demand strength.
The company will discuss its financial results in a call with analysts and investors on Wednesday morning.
United Airlines Holdings, Inc. (NASDAQ:UAL) posted its third-quarter fiscal 2026 results after Tuesday's closing bell, missing analyst estimates on the top and bottom lines.
Falling oil prices and a looming earnings report have airline stocks surging, but American Airlines is outpacing the entire group by a wide margin, and that gap tells a complicated story about what investors are betting on next.
Airline stocks are rising as crude oil pulls back from its recent climb, and one carrier with a quarterly report on deck is leading the group. American Airlines Group (NASDAQ:AAL | AAL Price Prediction) stock has climbed 5% to $12.27, a strong move for this major U.S. network carrier.
Meanwhile, United Airlines Holdings (NASDAQ:UAL) shares are up 3% to $98.46, a smaller advance than American Airlines stock. Similarly, Delta Air Lines (NYSE:DAL) stock is rising 3% to $76.75, a move that’s in line with United Airlines stock.
Oil Pullback Eases Fuel Pressure on Carriers
The key development sits in the oil market. For American Airlines, West Texas Intermediate (WTI) crude oil is down 1.5% over the past day to $97.05 per barrel. Jet fuel ranks among the largest costs for all three carriers. Most U.S. carriers don’t hedge fuel, leaving them exposed to every swing in oil prices.
Oil prices had climbed sharply amid conflict in the Middle East, pressuring margins at American Airlines, United Airlines and Delta. Any retreat in WTI eases part of that squeeze, since lower fuel bills flow straight to each carrier’s cost line.
American Airlines Runs Ahead of Its Q3 Report
American Airlines is heading into its upcoming Q3 2026 report, and the company guided to a loss per share for the quarter. Wall Street analysts also expect a loss, alongside higher revenue than a year earlier.
In its Q2 2026 report, American Airlines posted record operating revenue. Premium demand, loyalty growth and restored travel-agency distribution relationships are the tools the company is leaning on to lift sales. American Airlines’ managed corporate revenue and AAdvantage registrations both posted strong growth in that quarter.
Those demand drivers form the core of the bull case for American Airlines, because stronger sales could offset part of the fuel burden if oil keeps cooling. Heavy fuel costs and a guided Q3 loss weigh against those strengths.
Shares of American Airlines are rising faster than United Airlines stock, Delta shares and the broader airline group. This gap suggests part of the move may reflect positioning ahead of the report, on top of the sector-wide lift from relieving oil prices. Pre-earnings positioning can reverse quickly if results or commentary fall short.
Airline Fund Outpaces the Broad Market
For broad-market context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.6% to $771.16, a far smaller gain than the airline rally. Against that backdrop, the U.S. Global Jets ETF (NYSEARCA:JETS) is up 4% to $26.71. American Airlines, United Airlines and Delta all rank among the fund’s largest holdings, so the ETF captures much of the same lift.
The U.S. Global Jets ETF also holds budget airlines, international carriers, aircraft makers and travel-booking companies. This broader mix reduces the pure fuel effect. That makes the fund a steadier gauge of sector sentiment than any single carrier.
American Airlines Faces Its Guidance Test
A key question for American Airlines is whether its Q3 loss lands inside its own guidance range. Investors can watch for whether WTI holds its drop.
Strong momentum heading into the report raises the bar for American Airlines’ management. Shareholders may want to stay lightly positioned until results confirm the rally, since a guided loss and pre-earnings positioning leave room for a sharp reversal.
Contact [email protected] for any questions or corrections.
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United lowers the threshold for fresh food preorder in United Economy® from over 1,190 miles to over 900 miles on flights across North America and the Caribbean – that's 420 more flights per day
Fresh sandwiches, burritos, burgers, pasta and breakfast options are available on the airline's website and mobile app
This expansion is another example of nose-to-tail investments that deliver value, regardless of where you sit on the plane, like Starlink Wi-Fi, seatback screens with Bluetooth connectivity and larger overhead bins
, /PRNewswire/ -- United today expanded the United Economy® meal preorder program to customers traveling on shorter flights, giving up to 65,000 more customers per day access to this time-saving benefit.*
United lowered the threshold for Economy fresh food preorder from over 1,190 miles to over 900 miles on flights across North America and the Caribbean, opening this option to 420 additional flights per day, including hub-to-hub flights between Chicago and Houston, Denver and San Francisco and Houston and Washington, D.C.
United Expands Meal Preorder to Shorter Flights, Giving Up to 65,000 More Customers Per Day Access to Time-Saving Benefit
"We want our customers to have more of what they value when they fly – more choice, more convenience and a better experience onboard," said United's Chief Customer Officer, David Kinzelman. "Expanding Economy meal preorder to millions more customers is one way we're delivering on that, alongside the investments that make it easier to stay connected with fast, free Starlink Wi-Fi for MileagePlus® members, enjoy great entertainment and get more out of their time onboard."
Customers can visit the airline's website or mobile app and choose from a variety of fresh sandwiches, burgers, pasta and breakfast options that rotate monthly; current selections include a pork mojo burrito, Chicago patty melt by Jeff Mauro of Mauro Provisions, hot honey chicken and waffle sandwich and a cinnamon apple waffle, along with United's lineup of signature snackboxes and snacks.
Customers can preorder both fresh Bistro on Board selections and other eligible retail items in advance through the United mobile app or on united.com beginning five days and up to 24 hours before departure. Customers can browse the available options on united.com in the "Trips" section, and United mobile app users will receive a notification when preordering opens for their flight.
The expanded meal preorder program is the latest in a series of investments United is making across its fleet to deliver more choice, convenience and value throughout the customer journey:
Fast, free Starlink Wi-Fi: MileagePlus members in every class of service can stream, game, shop and stay connected from gate to gate with fast, free Starlink Wi-Fi on equipped aircraft. Starlink is now available across United's entire two-cabin regional fleet and more than 280 mainline aircraft, with installations across the fleet expected to be completed in 2027.
More live sports: United recently added TBS to its live streaming lineup in partnership with DISH on Starlink-enabled seatback screens, giving customers access to playoff baseball this fall. Available on more than 200 aircraft – about 900 flights per day – the lineup also includes live programming from ABC, CBS, NBC, FOX, FS1, ESPN, ESPN2, NFL Network and TNF on Prime Video.
Thousands of hours of entertainment: Customers can choose from more than 2,500 hours of premium entertainment onboard, including content from Apple TV, HBO Max, A24 and Spotify. The airline continues to install seatback screens across its fleet – up to 1,000 aircraft are expected before the end of 2027 – and is rolling out new airplanes with 27-inch, 4K OLED seatback screens, the largest among U.S. carriers.
More food and beverage options: Beginning November 1, United is refreshing its fan-favorite snackboxes – Tapas, Takeoff and Recline – with new selections inside. The airline also continues to introduce new seasonal food and beverage offerings across its onboard menu, including the limited-edition Wishes snackbox, created in collaboration with the Make-A-Wish Foundation to help support its mission of granting life-changing wishes to children with critical illnesses.
For more information, visit united.com. Visual assets linked here.
*Preordered meals may not be available under certain circumstances
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".
U.S. airline (AAL) (UAL) (DAL) fares for the holidays are surging, with Thanksgiving tickets up 31% and Christmas up 23%, as carriers pass on sharply higher fuel costs. MSCI may downgrade Indonesian equities (EIDO) from emerging market status, risking $5.6B in passive outflows and intensifying the Jakarta Composite Index's 43% YTD decline.
Air Canada (AC.TO) on Friday said it will launch new trans-border routes in partnership with United Airlines (UAL.O) for summer 2027, expanding non-stop access to US destinations and enhancing connections across the country.
The carrier will launch services from Toronto to Louisville, Montreal to Indianapolis and Edmonton to Newark during the season, while also increasing capacity on its Edmonton-San Francisco route by deploying larger Airbus aircraft.
Here are more details:
The expansion comes as Air Canada and United Airlines seek to deepen their presence in the Canada-US market through their joint business agreement, despite softer cross-border demand in recent months
The new routes support both business and leisure travel, while advancing Air Canada's strategy of connecting US passengers through its Canadian hubs to destinations in Europe and Asia, the Canadian airline said
United Airlines also announced a new seasonal service between Newark and St. John's, Newfoundland, and new flights from Denver to Ottawa and Quebec City, while increasing service on several existing Canada routes
The carriers have also agreed to renew and expand their trans-border joint business agreement, subject to regulatory approval from Canadian authorities, the airline said
United Airlines is rated a 'Buy,' supported by resilient revenue growth but pressured earnings due to elevated fuel costs and inflation. UAL's Q3 revenue is expected to rise 17.6% year-on-year, but EPS estimates have declined 6.9% amid rising costs outpacing fare increases. Management has responded with capacity reductions and strengthened liquidity, ending Q2 with $19.6 billion available, while premium and loyalty revenues grew double digits.
New digital tracking tool makes it easy for customers to check if Starlink is on their upcoming flights and follow rollout across United's fleet
United's 'Switch to Better Wi-Fi' campaign gets extended to October 22 after driving a 10X increase
in daily status match applications
Starlink is live on more than 635 United aircraft and nearly half of daily departures, and United plans to complete installations by the end of 2027
, /PRNewswire/ -- Starlink Wi-Fi continues to make a huge difference in the travel experience for millions of United customers, and today the airline announced that it is now on nearly half its daily departures, launched a new digital Starlink tracker tool that lets travelers check if Starlink is on their upcoming flight, and extended its new "Switch to Better Wi-Fi" status match campaign to October 22.
United Now Offers Starlink Wi-Fi on Nearly Half its Daily Flights, Launches New “Starlink Tracker” Tool & Extends Starlink Status Match Offer
The new Starlink tracker – StarlinkTracker.United.com – was created in response to customer demand and takes users behind the scenes of United's Starlink rollout. The stats on the site are updated daily and visitors can:
Check if their flight has Starlink: Enter travel dates and flight numbers within three days of departure, with updates made in real time for last-minute aircraft changes
Follow the rollout: See how many United aircraft and daily departures have Starlink
Explore installations by aircraft: See how many regional, narrowbody and widebody airplanes have Starlink onboard
View availability by hub: See the percentage of Starlink flights in Chicago, Newark, Washington, D.C., San Francisco, Los Angeles, Houston and Denver
The airline also notifies customers when their flight is scheduled to offer Starlink through pre-flight emails, text notifications and on the flight status page in the United app, as well as onboard announcements and signage on the airplane.
To give even more travelers the chance to experience Starlink, United is extending its "Switch to Better Wi-Fi" status match offer by an extra week in response to strong demand. In less than two weeks, thousands of customers have taken advantage of the offer and:
Status match applications for this campaign are 275% higher than pre-campaign levels
Top markets by participant volume include New York City, Los Angeles and San Francisco, followed by Washington, D.C., Atlanta and Chicago
"Starlink gives customers even more reasons to choose United and keep coming back," said Andrew Nocella, United's Executive Vice President and Chief Commercial Officer. "The overwhelmingly positive feedback from our customers and strong response to our 'Switch to Better Wi-Fi' status match offer show how much that matters. Our new tracker makes it easier for customers to see which flights they can experience it on as we quickly expand Starlink across our fleet."
United already has more Starlink-equipped planes than any other airline in the world and is installing it on about 20 aircraft per week with plans to complete installations by the end of 2027. More than 250,000 United customers on average fly on a Starlink-equipped plane every day onboard more than 2,500 flights – nearly half the airline's daily departures.
Starlink is now active on more than 635 United mainline and United Express® aircraft and the airline has already flown more than 37.7 million passengers on Starlink-powered aircraft across more than 538,000 flights, powering 14 million devices.
United's 'Switch to Better Wi-Fi' Status Match
The campaign launched on October 1 and gives eligible Delta SkyMiles and American AAdvantage members the opportunity to earn United Premier® status through January 2028 by meeting the offer's spending requirements and taking a United or United Express flight within 90 days. Spending requirements by tier are:
Premier® Silver: $1,500
Premier® Gold: $3,000
Premier® Platinum: $4,500
Premier® 1K: $7,000
Full eligibility details and terms can be found at united.com/switchtobetterwifi.
*Aircraft assignments are typically confirmed within 24 hours of departure and remain subject to change.
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".
United Airlines' tracker shows it has Starlink on less than 3% of its wide-body airplanes. Massimo Insabato/Archivio Massimo Insabato/Mondadori Portfolio via Getty Images If you're flying with United Airlines to capitalize on Starlink, it's now much easier to know whether your flight will include the fast, free internet service.
The airline released a tool on Thursday called the Starlink WiFi Tracker. You can enter your flight number up to 3 days before departure to check its Starlink availability.
This isn't infallible, though, as the airline might switch which plane it uses for your flight. However, United says the tool includes updates made in real time for such last-minute changes.
United already used texts, emails, and its app to notify passengers if their flight was scheduled to have Starlink, but the new tool lets you check for last-minute changes.
It also tracks the progress of Starlink installation across the fleet.
As of Thursday morning, 639 aircraft, or about 43% of United's fleet, are equipped with the service.
That includes all of its regional airplanes, operated under the United Express brand, and about a third of its other narrow-body airplanes — like the Airbus A321 and Boeing 737. However, Starlink is only on six of its 248 wide-body airplanes, which operate long-haul flights.
United said it is installing Starlink on about 20 aircraft a week and plans to complete installations by the end of 2027.
Its tool also shows the percentage of daily flights departing from each of its seven hubs that are equipped with Starlink. Chicago O'Hare leads the way at 54%, with San Francisco's 36% at the bottom.
Nearly half the airline's daily departures are equipped with Starlink, United said.
Starlink has become a notable advantage for United since its main rivals don't have it. American Airlines plans to install Starlink starting next year, while Delta Air Lines has tapped Amazon Leo.
United is trying to win over new customers by launching an offer that matches travelers' loyalty status on Delta or American. The offer said, "Don't keep buffering: switch to United and get the fastest WiFi in the sky."
Thousands of customers have signed up within two weeks, United said. It added that status match applications are up 275% compared to before this campaign.
And now, it's also extending the offer for another week.
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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 Starlink Elon Musk More Travel Aviation Airlines
Analysts on Wall Street project that United Airlines (UAL - Free Report) will announce quarterly earnings of $2.60 per share in its forthcoming report, representing a decline of 6.5% year over year. Revenues are projected to reach $17.84 billion, increasing 17.2% from the same quarter last year.
The current level reflects a downward revision of 44.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some United metrics that are commonly tracked and projected by analysts on Wall Street.
It is projected by analysts that the 'Operating revenue- Passenger revenue' will reach $16.34 billion. The estimate indicates a change of +18.3% from the prior-year quarter.
The consensus estimate for 'Operating revenue- Other operating revenue' stands at $1.07 billion. The estimate indicates a change of +9.7% from the prior-year quarter.
The consensus among analysts is that 'Operating revenue- Cargo' will reach $504.22 million. The estimate indicates a change of +17% from the prior-year quarter.
Analysts forecast 'Passenger load factor - Consolidated' to reach 85.6%. The estimate is in contrast to the year-ago figure of 84.4%.
According to the collective judgment of analysts, 'Total revenue per available seat mile (TRASM)' should come in at N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
Based on the collective assessment of analysts, 'CASM-ex (excluding special charges, third-party business expenses, fuel, and profit sharing)' should arrive at N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
Analysts' assessment points toward 'ASMs (Available seat miles)' reaching 88.71 billion. Compared to the current estimate, the company reported 87.42 billion in the same quarter of the previous year.
The average prediction of analysts places 'RPMs (Revenue passenger miles)' at 76.32 billion. Compared to the current estimate, the company reported 73.77 billion in the same quarter of the previous year.
Analysts expect 'PRASM (Passenger revenue per available seat mile)' to come in at N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
Analysts predict that the 'Fuel gallons consumed' will reach 1244 millions of gallons. The estimate is in contrast to the year-ago figure of 1233 millions of gallons.
The combined assessment of analysts suggests that 'Average yield per RPM' will likely reach N/A. The estimate compares to the year-ago value of N/A.
The collective assessment of analysts points to an estimated 'Operating expense- Aircraft fuel' of $4.89 billion.
View all Key Company Metrics for United here>>>
Shares of United have demonstrated returns of -6.9% over the past month compared to the Zacks S&P 500 composite's +1.4% change. With a Zacks Rank #5 (Strong Sell), UAL is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
United Airlines (UAL - Free Report) closed at $103.23 in the latest trading session, marking a -1.16% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.15%.
Shares of the airline witnessed a loss of 4.15% over the previous month, trailing the performance of the Transportation sector with its loss of 2.46%, and the S&P 500's gain of 2.05%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on October 20, 2026. It is anticipated that the company will report an EPS of $2.68, marking a 3.6% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $17.84 billion, reflecting a 17.19% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.94 per share and revenue of $68.51 billion, which would represent changes of -25.24% and +15.99%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 19.9% downward. Currently, United Airlines is carrying a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that United Airlines has a Forward P/E ratio of 13.16 right now. This denotes a premium relative to the industry average Forward P/E of 12.38.
One should further note that UAL currently holds a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Transportation - Airline stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.
United Airlines is getting rid of one path to achieve elite status in 2027 and making its top tier harder to reach.
The Chicago-based airline is removing the ability for MileagePlus members to earn status partially based on flight segments flown in a calendar year for 2027. Instead, starting Jan. 1, United will only consider the number of points members earn based on Premier qualifying points earned from eligible flight spending, award travel and eligible United credit card spending.
United announced the change Tuesday in emails to MileagePlus members and on its website. The change aims to simplify how customers earn Premier status, according to the email obtained by CNBC that United sent to members.
Previously, members could gain status in the lowest elite tier, Premier Silver, with a combination of 15 flight segments and 5,000 points earned in a year, or with 6,000 points. Now, customers will only be able to achieve the status through points at the 6,000 point threshold.
The number of Premier qualifying points it will take for members to reach the Premier Gold and Platinum tiers through points will also stay the same as the previous points-only option. However, to reach United's highest rewards tier, Premier 1K, members now need 32,000 qualifying points, up from 28,000 in 2026.
Flyers earn one Premier qualifying point, or PQP, per dollar spent on United base fares and upgrades, and for every 100 miles they redeem for travel on United flights. United Chase cardholders also earn points when they spend money with their card.
MileagePlus members will still have to take at least four flights on United or United Express jets in a year to be eligible for Premier status.
In an interview with travel website The Points Guy, United's President of MileagePlus Jarad Fisher called the flight segments metric an "old relic," saying that the airline "thought it made more sense for them to have one consistent metric ... that they could focus on across the board between their flight activity, their engagement in the airline."
United also announced Tuesday that United cardholders who have Premier status will get a head start by automatically receiving 5% of the points needed to reach the status level they earned the previous year when a new year begins.
United earlier this year overhauled the way travelers earn miles to reward customers holding its credit cards. The carrier also slashed earnings for basic economy flights, following earlier changes to the same practice by American Airlines and Delta Air Lines. United previously upped the thresholds required to earn Premier status in 2024 for the 2025 qualification year.
Key Takeaways United Airlines' Q3 earnings estimate has fallen 18.54% to $2.68 per share, implying a 3.6% annual decline.Elevated fuel prices, labor costs and reduced flying are expected to pressure UAL's third-quarter margins.Strong bookings and premium demand could lift United Airlines' Q3 revenues 17.2% to $17.84 billion. United Airlines Holdings, Inc. (UAL - Free Report) is scheduled to report third-quarter 2026 results on Oct. 20, after market close.
United Airlines has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.79%.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for United Airlines this earnings season.
Factors Likely to Have Influenced UAL’s Q3 PerformanceThe Zacks Consensus Estimate for UAL’s third-quarter 2026 earnings has been revised downward by 18.54% in the past 60 days to $2.68 per share. Moreover, the consensus mark implies a 3.6% decline from the year-ago actual. The consensus estimate lies within the company provided guided range of $2.50-$3.50.
Image Source: Zacks Investment Research
We expect high fuel costs to have dented UAL’s bottom-line performance in the September quarter. The ongoing conflict in the Middle East has resulted in a sharp jump in oil prices. This has been naturally hurting the bottom line of airlines because fuel expenses represent a key input cost for airlines. With most U.S. carriers having abandoned fuel hedging strategies, such an oil supply disruption has left them fully exposed to price spikes. The company’s outlook assumed an all-in fuel price of approximately $3.69 per gallon.
Labor and other nonfuel expenses remain a margin constraint. Management expects third-quarter CASM-ex to be the 2026 peak, but reduced flying keeps unit-cost pressure elevated until larger-gauge aircraft begin helping efficiency in 2027.
United Airlines also plans to trim flying when fuel makes marginal routes uneconomic. Management said in September 2026 that some December flights would be removed and further first-quarter 2027 adjustments were possible if fuel stayed elevated. These reductions protect cash generation but can limit near-term revenue capture while fixed costs are spread across fewer seat miles.
Despite the sharp rise in jet fuel price, solid bookings are likely to have aided UAL’s top-line performance in the September quarter. United Airlines continues to benefit from resilient demand, a richer premium and loyalty mix, and customer investments that support pricing. Given this encouraging backdrop, the Zacks Consensus Estimate for UAL’s third-quarter 2026 revenues is pegged at $17.84 billion, indicating 17.2% growth year over year.
What Our Model Says About UALOur proven model does not conclusively predict an earnings beat for United Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
United Airlines has an Earnings ESP of +0.17% and a Zacks Rank #5 (Strong Sell).
Highlights of UAL’s Q2 EarningsUnited 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.
Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.
Old Dominion Freight Line (ODFL - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ODFL is scheduled to report third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 0.63% over the past 60 days. ODFL’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average beat being 6.71%.
C.H. Robinson Worldwide (CHRW - Free Report) has an Earnings ESP of +3.43% and a Zacks Rank #2 at present. CHRW is scheduled to report third-quarter 2026 earnings on Oct. 28.
The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 1.82% to $1.68 per share over the past 60 days. CHRW’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and met the mark on the other occasion. The average beat is 8.11%.
United Airlines (UAL - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 20, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis airline is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of -3.6%.
Revenues are expected to be $17.84 billion, up 17.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 44.35% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for United?For United, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.17%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that United will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that United would post earnings of $1.92 per share when it actually produced earnings of $1.99, delivering a surprise of +3.65%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
United doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
United Airlines (UAL - Free Report) closed at $104.44 in the latest trading session, marking a -2.81% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq depreciated by 0.44%.
The airline's shares have seen a decrease of 2.15% over the last month, surpassing the Transportation sector's loss of 2.31% and falling behind the S&P 500's gain of 2.36%.
Analysts and investors alike will be keeping a close eye on the performance of United Airlines in its upcoming earnings disclosure. The company's earnings report is set to go public on October 20, 2026. The company is predicted to post an EPS of $2.68, indicating a 3.6% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $17.85 billion, showing a 17.25% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.94 per share and a revenue of $67.88 billion, indicating changes of -25.24% and +14.91%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Airlines. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 19.9% lower within the past month. United Airlines is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, United Airlines is presently being traded at a Forward P/E ratio of 13.54. This signifies a premium in comparison to the average Forward P/E of 12.29 for its industry.
It's also important to note that UAL currently trades at a PEG ratio of 1.23. 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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.95.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Key Takeaways United Airlines expands its FTAI engine exchange deal, boosting Boeing 737 NG efficiency.The agreement aims to reduce aircraft downtime, stabilize costs while improving fleet utilization.FTAI benefits from acquisitions & MRO demand while margins & refurbishment costs balances returns.
United Airlines’ (UAL - Free Report) expanded partnership with FTAI Aviation Ltd. (FTAI - Free Report) marks a significant step toward improving maintenance efficiency for its Boeing 737 NG fleet. By extending the engine exchange program to CFM56-7B engines, UAL aims to reduce aircraft downtime, improve fleet utilization, and maintain more predictable maintenance costs.
The agreement also presents a growth opportunity for FTAI, as it acquires unserviceable engines for its maintenance, repair and overhaul (MRO) network while supplying serviceable replacements to United Airlines. This model can strengthen FTAI’s engine inventory and support greater utilization of its maintenance capabilities.
The multi-year agreement provides scope for the program to expand as more engines become due for removal, potentially creating a sustained source of business for FTAI. The extension of an existing relationship from V2500 engines to CFM56-7B engines also reflects growing customer confidence in FTAI’s engine exchange capabilities.
Overall, the development is positive for both companies, supporting United Airlines’ operational efficiency and FTAI’s growth in the aviation aftermarket. However, the financial benefits for FTAI will depend on contract margins, engine refurbishment costs and the pace of program expansion.
UAL’s Share Price PerformanceUAL’s shares have gained 12.9% over the past six months against the Transportation - Airline industry’s 0.4% decline.
Image Source: Zacks Investment Research
UAL’s Zacks RankUAL currently has a Zacks Rank #5 (Strong Sell).
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider better-ranked stocks like International Seaways (INSW - Free Report) and Herc Holdings (HRI - Free Report) .
INSW currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
INSW has an expected earnings growth rate of more than 100% for 2026. The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 34%.
Herc Holdings currently sports a Zacks Rank #1.
HRI has a negative expected earnings growth rate of 7.36% for the current year. However, 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 60.64%.
United flyers can catch nearly every MLB postseason game – including the ALCS, NLCS and World Series – live onboard more than 900 flights per day with Starlink-enabled seatback screens
Since the live streaming service launched last month, passengers have watched more than 170,000 hours of live television including professional and college football games, reality show competitions and awards shows
In September more than 5.4 million people - about a third of United's customers - had Starlink on their flight and they're loving the experience: satisfaction scores are more than 40 points higher on Starlink-equipped planes than those with other Wi-Fi service
, /PRNewswire/ -- Baseball fans can now catch nearly every playoff game live onboard select United flights with Starlink-enabled seatback screens. The airline just added TBS to its onboard streaming lineup from DISH, which also includes live shows from ABC, CBS, NBC, FOX, FS1, ESPN, ESPN2, NFL Network and TNF on Prime Video. It's now available on more than 200 planes – about 900 flights per day – and since the feature launched onboard last month, passengers have watched more than 170,000 hours of live television.
United and DISH add Playoff Baseball to the Live Streaming Lineup on Airplanes with Starlink-Equipped Seatback Screens Starlink is the fastest, most reliable Wi-Fi in the sky and United is installing it at a rapid rate – in September, more than 5.4 million people - about a third of United's customers - had Starlink on their flight and they're loving the experience: satisfaction scores are more than 40 points higher on Starlink-equipped planes than those with other Wi-Fi service.
Starlink is free for MileagePlus® members in every class of service, and the airline expects to complete installations in 2027.
"The speed and reliability of Starlink's inflight Wi-Fi is unmatched, which means sports fans can book United flights with confidence knowing they won't miss a play on flights with Starlink-enabled seatback screens," said Andrew Nocella, United's Chief Commercial Officer. "Quality inflight Wi-Fi is more important than ever to travelers, and because Starlink gives people the same – or better – connectivity in the sky than they can get at home, it's a reason to choose United."
United is also offering a flexible and straightforward status match offer for Delta and American Airlines loyalty program members so they can experience Starlink for themselves. To qualify, customers must meet the spend requirement on United flights that are both purchased and flown within the 90-day period. Qualifying customers enjoy United Premier® status benefits through January 31, 2028. More details can be found at United.com/switchtobetterwifi.
Live streaming service from DISH is just the latest example of how United is using Starlink to redefine the inflight entertainment experience. In August, United partnered with ESPN to host a first-of-its kind live Fantasy Football Draft from 30,000 feet where ESPN analyst Tyler Fulghum made his picks live from the sky during the two-hour broadcast. And earlier this summer, United customers could stream the biggest soccer tournament in the world onboard Starlink-powered domestic flights.
Starlink is just one way United is investing nose to tail in its customer experience. The airline continues to install seatback screens across its fleet – up to 1,000 aircraft are expected to have seatback screens before the end of 2027 – and is rolling out new airplanes with 27-inch, 4K OLED seatback screens, the largest among U.S. carriers. Passengers can now access more than 2,500 hours of premium entertainment content onboard including Apple TV, HBO Max, A24 and Spotify.
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".
A fuel shock hit Delta's quarterly earnings hard enough to force a full-year forecast cut, yet the airline's premium cabins and loyalty program held firm. Whether that cushion survives another costly quarter depends on answers Delta has not yet given.
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A fuel shock is rippling through airline stocks, and Delta Air Lines (NYSE:DAL | DAL Price Prediction) is absorbing the hardest hit after cutting its full-year outlook. Delta stock is at $80, down 3% in early trade, after the carrier’s third-quarter 2026 results came in below what analysts had expected.
Meanwhile, United Airlines (NASDAQ:UAL) stock is at $106.50, down 0.9%. Also, American Airlines (NASDAQ:AAL) stock is at $12.65, down 1%. Both peers are falling less than Delta stock, leaving the reporting carrier at the center of the selloff.
Across the sector, the U.S. Global Jets ETF (NYSEARCA:JETS), a basket of airline stocks, is down 0.5%. However, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.4%. That difference marks a fuel story reaching the whole airline group, with Delta stock taking the largest share of the damage.
Fuel Bill Spike Forces a Forecast Cut Delta reported adjusted earnings per share of $1.72 for the quarter, missing expectations, according to Delta Air Lines. Rising energy expenses drove the shortfall, with the carrier’s quarterly fuel bill climbing 62% from a year earlier, according to Delta Air Lines. The company lowered its full-year forecasts for adjusted earnings per share and free cash flow, citing fuel costs above guidance issued in July.
According to Delta’s chief financial officer, the reduction traced entirely to fuel and costs are set to rise again next quarter. CEO Ed Bastian addressed the results. He stated, “Demand remains strong, supported by consumers’ growing preference for experiences and travel, with air travel continuing to be one of the best values in the consumer economy.” That combination of firm demand and climbing input costs captures the central tension in Delta’s quarter.
Premium Cabins and Loyalty Cushion the Blow Delta’s premium cabin and loyalty revenue grew year over year, and the company said its credit card remuneration rose as well, with spending from the airline’s most valuable customers softening part of the quarter’s damage and offsetting some of the margin pressure that fuel created. Looking ahead, the company plans to grow capacity next quarter, a reversal from its stance earlier in the year.
Relative to other network carriers, Delta leans on premium cabins, loyalty, and a co-branded credit card for a larger share of revenue, which gives it a partial buffer against fuel shocks. Jet fuel passes through to customers only to the extent fares absorb it, so sharp price moves hit every network carrier’s margin at once.
The bear case holds that a fuel shock sits outside management’s control, and Delta’s reduced forecast acknowledges that the pressure runs into next quarter. The bull case notes that demand and pricing held up well enough for Delta’s premium and loyalty businesses to keep growing through the same stretch, which suggests the carrier still commands strong fares. Which view prevails depends on how long Delta’s elevated fuel burden lasts.
What to Watch Next Energy prices now set the tone for Delta’s outlook heading into year-end, since management expects costs to climb again next quarter. The question is whether Delta’s premium and loyalty momentum holds as the airline leans on higher fares to recover those expenses. Any softening on that front could strip away the buffer that limited Delta’s third-quarter damage.
Delta’s plan to add capacity next quarter gives shareholders a second test: whether the extra seats boost revenue faster than fuel lifts expenses. For United and American, the open question is whether fare increases across the group keep pace with jet fuel. Clearer answers could arrive with each carrier’s next quarterly update.
Contact [email protected] for any questions or corrections.
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.
The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
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Passengers on a United Airlines flight from Washington, DC, to Rome on Oct. 2 faced a grueling overnight ordeal as they waited nearly 12 hours to take off — only to have the airline cancel the flight before it left the ground.
United Airlines Flight 884 was scheduled to depart Washington Dulles International Airport at 5:35 p.m. on Oct. 2 for an overnight trip to Rome’s Fiumicino Airport.
Instead, passengers were grounded by a cascading series of issues, including a cockpit malfunction, severe thunderstorms, and crew changes, “The Aviation Hub” blog reported.
“United flight 884 from Washington Dulles to Rome returned to the gate after taxiing to take on additional fuel for a longer planned flight due to weather,” United Airlines told Fox News Digital in a statement.
“During this time, a new crew was brought in, and a maintenance issue that arose was resolved. The aircraft then pushed back from the gate, but then required another mechanical inspection,” the airline’s statement continued.
A United Airlines Boeing 737, registration N13716, taxis for takeoff at Dulles International Airport in Washington, DC, on April 29, 2024. Cerib – stock.adobe.com
A crowd of travelers waits to check in at Dulles International Airport on Aug. 30, 2024. AFP via Getty Images “The flight was then canceled due to crew time limits. We rebooked customers on an extra flight that departed on Saturday evening,” the statement concluded.
A faulty door seal and mishap with the plane’s pushback tug likely also played a part in the delays, according to the “Simple Flying” aviation blog.
The problems weren’t over, however.
When the flight was canceled at around 4 a.m. the following morning, some of the travelers had been facing delays for 12 hours, Men’s Journal noted.
Then, after technical issues, there were thunderstorms.
The plane sat on the tarmac, waiting to depart. The Boeing 777-200ER returned to the gate around three hours later to refuel, according to several reports.
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Ultimately, the passengers had to exit the aircraft because the first crew reached its legal duty-time limit after a six-hour delay.
A new crew started, but subsequent mechanical issues forced everyone to deplane a second time before the flight was finally canceled.
The affected passengers were finally rebooked on another flight that took off from Dulles just before 7 p.m. on Saturday, putting them en route to Rome over 25 hours later than originally planned.
A frustrated passenger vented in the United Airlines MileagePlus Experts group on Facebook.
A frustrated passenger vented in the United Airlines MileagePlus Experts group on Facebook. pettys – stock.adobe.com “I’m surprised there hasn’t been a mutiny,” wrote the passenger, who was on the flight.
“You should be eligible for compensation if you have a traveler’s credit card. These things happen. That’s why there’s insurance,” another Facebook user responded.
Not everyone was sympathetic.
“I fly a lot also. If you can’t handle the problems, you have three choices. Fly private, fly a different [airline], don’t fly. I have been flying for 43 years with United. There are ups and downs, live with them or move on,” the Facebook user said.
Yet another United flyer said, “Most of the issues you point out are regulations written in blood. … I’d rather not have to relearn them at the risk of safety.”
United Airlines (UAL - Free Report) closed at $110.00 in the latest trading session, marking a -2.23% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.66% for the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 1.05%.
Shares of the airline witnessed a gain of 1.01% over the previous month, beating the performance of the Transportation sector with its loss of 3.02%, and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on October 20, 2026. In that report, analysts expect United Airlines to post earnings of $3.03 per share. This would mark year-over-year growth of 8.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.8 billion, up 16.88% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.66 per share and a revenue of $67.61 billion, signifying shifts of -9.04% and +14.45%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for United Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.51% lower. At present, United Airlines boasts a Zacks Rank of #5 (Strong Sell).
Investors should also note United Airlines's current valuation metrics, including its Forward P/E ratio of 11.65. For comparison, its industry has an average Forward P/E of 11.57, which means United Airlines is trading at a premium to the group.
One should further note that UAL currently holds a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.92.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.
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United's latest status-match campaign comes as major US airlines compete for high-value frequent fliers. Patrick T Fallon/AFP/Getty Images If you're a loyal Delta flier, you're one of United Airlines' hottest targets right now.
United went on the offensive this week, offering eligible elite members of Delta Air Lines and American Airlines a loyalty status match.
Some Delta customers have complained online that the company needs to offer better products to retain its frequent fliers, including smoother internet service.
United's X account replied to several complaints, encouraging them to consider switching.
David Hansson, a programmer and writer, wrote in an X post that he would be convinced to switch from Delta to United because of Starlink access. Delta has opted not to use Starlink on its planes, a decision that has riled Elon Musk and given United an in.
Why cheap bus travel is disappearing in America
"I'm a @delta Diamond Medallion flier, and I'm generally happy with the airline, but the one thing that could make me switch to @united is Starlink," Hansson wrote on Wednesday. "It's just so much better. Crazy to deny your customers the best just because you don't like Elon."
Others used the moment to poke fun at the airlines' different approaches to onboard WiFi.
"United is a blue collar airline for knowledge workers who need to work on their laptops even when they're on a plane," another X user wrote on the platform.
Josh Kaplan, an investor and startup founder, said on X that he's been a Delta Diamond member for 10 years, but this year will be the last.
"I'm sure complaining about Delta will sound like a champagne problem, but oh well. A few things finally broke me," Kaplan wrote, citing difficult upgrades, long lounge lines, unreliable WiFi, chaotic boarding, and steep fares.
United isn't alone. American Airlines also launched a status-match promotion on Wednesday. The carrier plans to begin installing Starlink WiFi on more than 500 narrow-body aircraft beginning in the first quarter of 2027, it said in May.
The moves underscore how fiercely the biggest US airlines are competing for high-value frequent fliers, whose spending on premium cabins, airline credit cards, and business travel makes them some of the industry's most valuable customers.
Status matches are a longstanding tactic airlines use to lure elite travelers from rivals by letting them keep perks.
In its latest campaign, United touted its Starlink WiFi rollout as another reason for frequent fliers to switch.
Some United loyalists say status should be earnedUnited's offer has drawn pushback from some of its own frequent fliers, who say elite status should be earned through long-term loyalty rather than handed to customers switching from a rival.
"I am United till I die. I might tease but I'm never leaving them," Joe Borelli, managing director of the consultancy firm Chartwell Strategy Group, told Business Insider. "But the loyalty has to work two ways."
Borelli said United has the "best product" — but letting people "skip the line" feels unfair.
"It's not fair for people like me who have had credit cards going back decades, mileage plus accounts for years, who have chosen United over their competitors, even some low cost competitors," he added.
Scott Nations, an investor, market commentator, and author of "The Anxious Investor," concurred.
"I don't blame United, but as a United Gold flyer, I'm going to be angry if I have lower status than someone who's never flown the airline," he wrote in an X post.
In a statement to Business Insider on Thursday, a Delta spokesperson said the airline offers "more fast, free WiFi than any other airline in the world," with nearly 1,300 aircraft equipped.
The spokesperson added that, with transpacific routes coming online soon, Delta will be "the only US airline to provide it across our entire global network."
Delta and United did not respond to further requests for comment from Business Insider sent outside regular business hours.
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Kelsey Vlamis You're currently following this author! Click to unsubscribe from email alerts.
Kelsey Vlamis is a senior reporter for Business Insider, where she covers business and tech news. She also writes business stories about travel, luxury, and culture. Previously, she covered the environment, outdoors, and indigenous issues.Her feature story "Disaster at 18,200 feet" received awards from the New York Press Club and the North American Travel Journalists Association, as well as honorable mention from the Society of American Travel Writers. She has also received an American Journalism Online Award for her coverage on missing and murdered Indigenous people in Wyoming.She's appeared on CBS, NPR, NBC, and other outlets to discuss her reporting. She previously worked on the world news desk at the BBC in London and received a master's in journalism from Northwestern University.She can be reached by email at [email protected] or via the encrypted-messaging app Signal at kelseyv.21.
Huileng Tan You're currently following this author! Click to unsubscribe from email alerts.
Huileng Tan is a senior reporter based in Singapore, covering markets, the global economy, commodities, and investing. Her reporting focuses on how shifts in money, demographics, technology, and policy are reshaping businesses, wealth, and everyday life around the world.Since joining Business Insider in 2021, she has covered everything from commodity booms and investor trends to China's economy, the AI trade, and the forces driving global markets.Before joining Business Insider, she reported for CNBC, Dow Jones, ICIS, and The Wall Street Journal.Reach her at [email protected].
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Cheryl is the senior news editor for Business Insider’s Asia bureau in Singapore. She and her team cover global business and tech news, including AI, consumer and workplace trends, and military technology. She frequently speaks to international media about top news stories — please email her for bookings.As a writer, Cheryl's interests include the business of nerdworld and K-pop. She covers crews such as Critical Role and Dimension 20, new releases in mobile and video gaming, and the artists, fandoms, and business trends shaping the K-pop industry.
United Airlines wants you to defect from your airline.
The carrier is in the middle of an unusually pointed status-match campaign to woo travelers who have earned a spot in elite frequent flyer tiers with Delta Air Lines and American Airlines by offering similar treatment at United.
Here's how it works: Travelers with any tier of elite status on Delta or American will be granted United status for 90 days.
To keep it through Jan. 31, 2028, they'll have to take a flight and spend a certain amount on United mainline or regional flights within those 90 days.
For example, if a traveler has the lowest level Delta Medallion status, silver, or the same on American, which is gold, they would have to spend $1,500 on United in the roughly three months.
To get a status match of United's 1K, its highest level before invitation-only Global Services, the person would have to spend $7,000.
Delta and American have their own status matches for a host of other airlines, but United's call-out of rivals and social media campaign shows how heated the battle for big-spending customers has become, said Henry Harteveldt, founder of travel consulting firm Atmosphere Research Group.
"This is war, airline style," he said. "It's very rare for an airline to be as blatant as United is being" with Delta and American.
Airlines have been adding new lounges, extra premium seats and more international routes to lure those high-spenders.
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 itIn this push, United is using its new Starlink Wi-Fi from SpaceX as a hook for customers looking to potentially defect from their airlines.
The carrier is in the process of outfitting its aircraft with the satellite Wi-Fi, which is free for frequent flyer program members, though it is not available across the fleet yet, and customers still have to pay at least $8 per flight with current providers. American Airlines also signed with Starlink for hundreds of its narrow-body jets, while Delta is planning to change the provider of its free, in-flight Wi-Fi to Amazon's Leo.
"Our long-term strategic partnership with Amazon Leo will provide high-bandwidth connectivity while creating opportunities to bring their broad ecosystem of entertainment and digital services to the skies," Delta said in a statement.
American, where United's CEO Scott Kirby worked until a decade ago, didn't immediately comment.
United Airlines said it installed Starlink on over 560 of its airplanes as of mid-September. Gary Hershorn/Getty Images United Airlines is trying to pry away its rivals' loyal fliers with a not-so-subtle jab at their lack of Starlink.
"Don't keep buffering: switch to United and get the fastest WiFi in the sky," reads its offer to match travelers' loyalty status on Delta Air Lines or American Airlines.
Early on Thursday, United's X account replied to a dozen posts from users who were discussing the offer or complaining about Delta's in-flight WiFi.
The offer is open until October 15, and customers will have 90 days to spend or fly with United to maintain their status level through the end of January 2028. It applies to members with elite status, which starts with American Gold or Delta Silver Medallion.
United was the first US airline to announce a deal with Elon Musk's Starlink, back in 2024. As of mid-September, Starlink was equipped on about a third of its fleet, including mainline aircraft and regional ones operated by United Express subsidiaries.
Why cheap bus travel is disappearing in America
It hopes that all its airplanes will be equipped with the ultra-fast satellite WiFi service by the end of next year.
Although American signed on with Starlink in May, the service is not yet available as the airline plans to start rolling it out next year on narrow-body airplanes.
American also announced a loyalty-status match program late on Wednesday. It's offered to travelers with status on Southwest, JetBlue, Delta, and United, and lasts for four months.
However, switching your airline of choice may not be practical for everyone.
While the Big Three airlines compete fiercely in major cities, many travelers may find one of them offers more routes — or perhaps the only ones — from their local airport. For example, Delta has a larger presence in the South thanks to its enormous hub in Atlanta.
Unlike its rivals, Delta has passed on Starlink in favor of Amazon Leo. Leo similarly uses a constellation of satellites in low Earth orbit for internet connection, but its only other airline customer is JetBlue. Delta plans to start installing the service on 500 aircraft in 2028.
Delta's decision has repeatedly drawn Musk's ire.
On Tuesday, he posted on X saying Delta CEO Ed Bastian will "lose his job over this." The world's richest person also responded with a laughing emoji to one user who joked that AI agents could be isolated from crawling the internet by giving them Delta's in-flight WiFi.
It was at least the third instance of Musk bashing Delta since it announced the Amazon Leo deal in May.
At the time, Bastian told Bloomberg that Amazon's service has an "improved bandwidth with a much lower price point than what we've ever seen from Starlink."
He also highlighted Amazon's retail and video-gaming offerings, and an airline spokesperson cited the potential for a "broader partnership" beyond in-flight WiFi.
Delta and United did not immediately respond to requests for comment.
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Pete Syme You're currently following this author! Click to unsubscribe from email alerts.
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.
SpaceX Starlink Elon Musk More United Airlines American Airlines Aviation Airlines
