Track market-moving stories before they get noisy

Investors were bracing themselves for what airlines like Delta Air Lines (DAL -0.69%) and United Airlines (UAL -0.17%) might report for the second quarter in light of the surge in jet fuel prices. However, although rising fuel costs are definitely having an impact on both airlines, Delta affirmed its forecast, and United Airlines actually increased its earnings outlook. Does this make both airline stocks a buy?

Rising jet fuel costs It's no secret that hostilities in the Middle East led to sharply higher crude oil prices throughout the second quarter. The shortage of crude oil and jet fuel flowing through the Strait of Hormuz not only increased crude oil prices but also sent jet fuel crack spreads soaring. The end result was a major increase in jet fuel costs for airlines in the quarter.

Image source: Getty Images.

As you can see below, the overwhelming majority of the increase in operating expenses in the second quarter was due to higher fuel costs, and in both cases, year-over-year operating income deteriorated.

Year-over-Year Change  Operating Revenue Change

Fuel Cost Change

Total Operating Expenses Change

Operating Income Change

United Airlines

$2,436 million

$2,335 million

$2,665 million

($229 million)

Delta Air Lines*

$2,159 million

$1,913 million

$2,659 million

($501 million)

Data source: Company presentations. *Adjusted figures

Both stocks look like excellent values Rising fuel costs do matter, and both companies' management teams told the market they plan for significantly increased fuel costs in 2026.

Today's Change

(

-0.69

%) $

-0.59

Current Price

$

84.05

Delta Air Lines expects its fuel costs to increase by $4 billion in 2026 compared to 2025, and United Airlines expects its fuel costs to be $6 billion higher than its original estimate going into the year.

Today's Change

(

-0.17

%) $

-0.20

Current Price

$

117.50

However, before getting despondent over rising fuel costs eating into profitability, it's important to note a few things:

Both companies are demonstrating the ability to offset rising costs by raising prices, cutting unprofitable capacity where necessary, and leaning into their premium cabin offerings, including pricing and other services. Although crude oil and jet fuel prices rose in the second quarter, it's far from clear that they will remain at the same elevated level. Even though rising costs reduced earnings for both airlines, they remain highly profitable, and both companies provided outlooks that placed their stocks firmly in value territory. Fleshing out the last point, Delta Air Lines continues to expect full-year earnings per share (EPS) of $6.50 to $7.50, and United Airlines actually raised its full-year EPS estimate range to $9 to $11 from a previous range of $7 to $11.

To put these figures into context, here's what these guidance ranges mean in terms of valuation based on their price-to-earning (P/E) ratios:

Company

2026 Price to Earnings at Low End of EPS Range

2026 Price to Earnings at High End of EPS Range

United Airlines

12.9 times

10.6 times

Delta Air Lines

13 times

11.3 times

Data source: Company presentations. The author's analysis is based on prices on July 17.

In other words, you are going to have to believe that both companies will miss the low end of their projections for them not to look like a good value based on 2026 earnings estimates. Moreover, note that the forecasts already have significantly higher fuel costs baked in.

Are they a buy? In the end, the debate over the stocks comes down to the core question of whether the airline industry is still the same old cyclical industry characterized by violent boom-and-bust periods. If you believe it is, then a low price-to-earnings (P/E) ratio won't appease you, because many fortunes have been lost buying cyclical stocks at low P/Es just as their earnings peaked and then collapsed.

However, if you share my belief that Delta and United have diversified their revenue streams away from overreliance on main cabin ticketing and toward premium cabin ticketing, auxiliary services, co-branded credit card remuneration, and loyalty programs, then there's a strong case for buying their stocks. Not least because they are being stress-tested right now by rising fuel costs and appear to be handling a difficult scenario well enough to at least maintain their forecasts.

By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

United Airlines flights in the United States were delayed Saturday morning after a tech outage. Mondadori Portfolio/Getty Images Some United Airlines flights across the US, from New York to San Francisco, were delayed on Saturday due to a technology outage.

United Airlines passengers said on social media that the issue affected operations at several major airports, including Washington Dulles International Airport in Virginia and Newark Liberty International Airport in New Jersey. Some passengers said they faced delays, while others said they encountered issues checking in, boarding, and checking their bags.

Down Detector, a site that tracks status updates and outages, showed that passengers began reporting the issues before 7:40 a.m. on Saturday. By 8:23 a.m., Down Detector had recorded more than 430 reports.

A spokesperson for United Airlines said the issue has since been resolved.

"Our teams are getting our operations back to normal after a technology outage affected contact centers and check-in processes earlier today," the spokesperson told Business Insider. "We encourage customers to check their flight status on the United app as they get ready to travel today."

The spokesperson said the outage struck the airline's reservation system. As a result, the company couldn't process check-ins or process customer tickets. The spokesperson said the outage did not affect flights that were already airborne or had left the gate.

United Airlines was among several airlines that faced major disruptions after widespread tech outages related to a CrowdStrike update two years ago. At the time, the airline cautioned pilots that they may be unable to communicate with ground services. It was forced to cancel thousands of flights as a result.

Read next

Lauren Edmonds You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus

United Airlines air travel

56.29K Followers

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

By PYMNTS  |  July 16, 2026

 | 

United Airlines saw strong demand from travelers in the second quarter despite higher ticket prices caused by surges in the price of fuel, executives said Thursday (July 16) during an earnings call.

“In the quarter, United carried 10 of our highest passenger days in company history, with the highest being over 640,000 customers carried on June 18,” United Airlines President Brett J. Hart said during the call.

Mike Leskinen, executive vice president and chief financial officer at United, said during the call: “United has not seen a measurable demand impact based on the higher fares. In fact, if you zoom out to consider price inflation for travel over the last 10 and 20 years, airfare stands out as a tremendous value. Our customers increasingly desire a better travel experience, and we believe they will continue to pay reasonable prices for it.”

The airline saw growing demand across categories. The total revenue per available seat mile (TRASM) was up 12.1% year over year, indicating strong demand for its products, Andrew Nocella, executive vice president and chief commercial officer at United Airlines, said during the call.

“We observed minimal to no impact on demand from higher price points, a trend we see continuing,” Nocella said.

In terms of passenger revenue per available seat mile (PRASM), domestic was up 12.2% year over year and international was up 12.0%, according to a Thursday news release.

PRASM was up 11.6% year over year in the premium category and 11.5% in the main cabin, Nocella said during the call.

“This is the second quarter in a row where we’ve seen main cabin PRASMs positive after years of below-average performance at an industry level.”

Contracted business revenues were up 27% year over year, with the technology, financial services and professional services sectors leading the way, Nocella said.

“These same positive business demand trends continued into early July and we expect to continue for the remainder of the year,” Nocella said.

Overall, United Airlines CEO Scott Kirby said during the call, “Demand remains robust as we expect both 3Q and 4Q TRASM to grow faster than 2Q’s 12%.”

Key Takeaways UAL's Q2 adjusted EPS fell 48.6% to $1.99, while revenues rose 16% to $17.67 billion.Passenger revenues climbed 16.4% as premium, loyalty and contracted business demand strengthened.UAL raised its 2026 adjusted EPS outlook to $9-$11 despite an 84.1% surge in fuel expense. United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.

UAL Benefits From Strong Passenger Revenue TrendsPassenger revenues increased 16.4% year over year to $16.10 billion. Domestic passenger revenues advanced 20.3%, while international passenger revenues rose 11.2%. Pacific revenues increased 18.7%, Europe gained 10.2% and Latin America improved 10.5%, partly offset by a 16.4% decline in the Middle East, India and Africa region.

Consolidated passenger revenue per available seat mile increased 12.5%, while yield rose 12.1%. Premium revenues grew 16%, Basic Economy revenues advanced 11% and loyalty revenues increased 11%. Contracted business revenues jumped 27%, reflecting robust close-in demand.

United Airlines Posts Better Traffic and Load FactorTraffic, measured in revenue passenger miles, increased 3.8%, while capacity rose 3.5%. With traffic growth slightly outpacing capacity expansion, the consolidated load factor improved 0.3 percentage points to 83.4%.

United transported 48.7 million passengers, up 5.4% from the prior-year period. Domestic load factor declined 0.6 points to 83.5%, but the international load factor climbed 1.2 points to 83.2%. The airline also operated the 10 highest-volume passenger days in its history during June.

UAL Faces a Sharp Increase in Fuel ExpenseOperating expenses rose 19.2% to $16.58 billion, outpacing revenue growth. Aircraft fuel expense surged 84.1% to $5.11 billion as the average fuel price increased 79.4% to $4.19 per gallon. Fuel consumption rose 2.7%.

Cost per available seat mile increased 15.2% to 18.99 cents. CASM-ex, which excludes fuel, profit sharing, special items and third-party business expenses, rose 6.1% to 13.12 cents. Salaries and related costs increased 6.2%, while distribution expenses climbed 32.3%.

United Airlines Sees Profitability ContractAdjusted operating income fell 46.3% to $951 million, while the adjusted operating margin narrowed 6.2 percentage points to 5.4%. Adjusted pre-tax income declined 49.5% to $843 million, and the adjusted pre-tax margin contracted to 4.8% from 11%.

Adjusted net income decreased 48.7% to $649 million. On a reported basis, net income fell 17.3% to $805 million, while diluted earnings declined to $2.46 per share from $2.97. The difference reflected special credits, including gains from aircraft sale-leaseback transactions.

UAL Generates Cash and Builds LiquidityOperating cash flow totaled $1.61 billion during the quarter, while free cash flow came in at $322 million. Adjusted capital expenditures were $1.45 billion, reflecting continued spending on fleet and customer-facing investments.

Available liquidity ended the quarter at $19.6 billion. Cash and cash equivalents totaled $10.17 billion, while short-term investments were $6.47 billion. Debt, finance lease obligations and other financial liabilities stood at $26.46 billion, and trailing-12-month net leverage was 2.2 times.

United Airlines Raises Its Full-Year OutlookUnited now expects adjusted earnings of $9-$11 per share for 2026. The Zacks Consensus Estimate of $10.68 for full-year earnings lies within the company's guided range. For the third quarter, adjusted earnings are projected between $2.50 and $3.50 per share, based on an assumed all-in fuel price of approximately $3.69 per gallon. The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.68.

Management expects third and fourth-quarter TRASM growth to exceed the second quarter’s 12.1% increase. The airline anticipates recovering 80%-90% of the fuel-price increase in the third quarter and all of it by the fourth quarter. Adjusted capital expenditures are forecast at approximately $7.5 billion for 2026.

UAL Expands Its Fleet and Customer Investments

United expects its mainline fleet to reach 1,173 aircraft by year-end, up from 1,122 at the end of the second quarter. The plan includes 323 Boeing 737 MAX aircraft, 100 Boeing 787s and 88 Airbus A321neo or XLR aircraft. Regional aircraft are expected to total 442.

The airline had installed Starlink on more than 450 aircraft and expects nearly 1,000 installations by year-end. It also plans to introduce its first Airbus A321XLR into domestic service in the fall, followed by international deployment early next year.

UAL’s Zacks Rank

Currently, UAL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (percentage-wise) from a year ago as sharply higher fuel costs pressured profitability.

Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

Iran Ceasefire or Not, These 3 Companies Could WinUnited Airlines NASDAQ: UAL executives said the carrier’s second-quarter 2026 results showed strong demand, improving pricing and continued operational gains, even as a sharp increase in fuel prices pressured earnings and led the company to update its guidance approach.

Chief Executive Officer Scott Kirby said United’s second-quarter revenue rose 16%, which he said recovered “about half the increase in fuel price for the period.” He said the company had been on track to discuss year-over-year earnings growth before fuel prices rose sharply in the prior week.

Get United Airlines alerts:

Sky Wars: United's Predator Play for American“We feel we owe it to investors to update our practice and provide guidance to reflect the most current fuel prices,” Kirby said. He added that the fuel price spike this month was equal to $1.12 of earnings per share. If fuel prices return to earlier-month levels, he said United expects to be above the high end of its guidance range.

Revenue Strength Broad-Based Across Network Chief Commercial Officer Andrew Nocella said total operating revenue rose 16% year over year to $17.7 billion. Passenger revenue per available seat mile, or PRASM, increased 12.1%, while load factors were up slightly, which he said indicated strong demand for United’s products.

3 Stocks Flashing Rare Buy Signals After the Market's Wildest MonthDomestic passenger revenue rose 20.3%, with domestic PRASM up 12.2%. International PRASM rose 12%, including a 14% increase in the Pacific region, 12.1% in the Atlantic and 10.7% in Latin America. Cargo revenue increased 22.6%, with Nocella saying most of the gains were yield-related rather than volume-related.

Loyalty revenue rose 11.3%. Nocella said MileagePlus program changes helped drive momentum in co-branded credit card accounts, spending, engagement and membership. New co-branded credit card accounts reached a second-quarter record, up 22%, while card spend rose 14% and MileagePlus enrollments increased 9%.

Premium revenue increased 16.4%, and premium PRASM rose 11.6%. PRASM for the Polaris and Premium Plus cabins rose 13.6%, while main cabin PRASM increased 11.5%.

Nocella said close-in business travel was “exceptionally strong,” with contracted business revenues flown up 27% and bookings up 30%, led by technology, financial services and professional services. United grew corporate share year over year in all of its hubs, he said.

Guidance Reflects Higher Fuel Costs Chief Financial Officer Mike Leskinen said United delivered second-quarter earnings per share of $1.99, at the high end of its guidance range of $1 to $2. The company reported a 4.8% pre-tax margin despite a $2.3 billion year-over-year fuel headwind.

United expects third-quarter earnings per share of $2.50 to $3.50, based on an all-in fuel price of about $3.69 using Tuesday’s curve. For the full year, the company tightened guidance to $9 to $11 per share, at the high end of its prior range.

Leskinen said fuel prices had increased 15% to 20% since early July, and that fuel remained almost $6 billion higher for the year compared with United’s outlook at the start of the year. He said the company expects to recover 80% to 90% of the fuel increase in the third quarter and fully recover it by the fourth quarter.

Executives repeatedly said they had not seen measurable demand weakness from higher fares. Kirby argued that industry pricing is being driven not only by fuel but by structural increases in non-fuel costs, including airport fees, labor and maintenance.

Operations Improve as Starlink Rollout Accelerates President Brett Hart said United carried 10 of the highest passenger days in company history during the quarter, including more than 640,000 customers on June 18. He said the airline had top-tier on-time departures for the sixth consecutive quarter among its largest U.S. competitors and recorded its lowest second-quarter seat cancellation rate in company history.

Hart highlighted improvements at Newark, United’s busiest global gateway. In June, Newark ranked first in on-time arrivals, posted its best on-time departure rate ever and recorded its lowest seat cancellation rate since 2018, he said.

Customer satisfaction also improved, with Hart saying United recorded its highest second-quarter Net Promoter Score since the pandemic.

United is also accelerating its rollout of free Starlink Wi-Fi. Hart said the company now expects to have close to 1,000 Starlink-equipped aircraft by the end of the year. Wi-Fi satisfaction scores on Starlink-equipped aircraft are more than double those of other Wi-Fi aircraft, he said.

Fleet and Product Investments Remain Central to Strategy Executives said United’s strategy remains focused on brand loyalty, product differentiation and premium growth. Kirby said the airline is using the current environment to accelerate investments in the customer experience “from nose to tail.”

Nocella said United continues to gain local share in each of its seven hubs and that passenger share in those hubs has increased seven points since 2019. He said United’s efforts to decommoditize revenue streams and create more consumer choice are accelerating heading into 2027.

The company said it has renewed optimism that it will take delivery of its first Boeing MAX 10 in mid- to late 2027. Nocella said the MAX 10 will have more premium seats than the aircraft it replaces and “best-in-class CASM.” United also plans to expand flying on premium Airbus A321 aircraft, including the XLR and Coastliner, later this year and into 2027.

Leskinen said United plans to retire at least 80 aircraft in 2027 as it renews and upgauges its fleet. He said those retirements will help improve cost performance because the aircraft being retired are older, less fuel efficient and have older cabins.

Balance Sheet Liquidity Raised Amid Oil Volatility Leskinen said United raised $3.7 billion of new debt through private bank transactions after heightened volatility related to hostilities with Iran and risks around the Strait of Hormuz. He said the debt was priced at a fixed-rate equivalent in the low 5% range, inside the company’s most expensive existing debt.

Once oil prices stabilize, United intends to use the funds to prepay more expensive debt and purchase aircraft with cash, Leskinen said. Since the beginning of the second quarter, the company has prepaid about $1 billion of higher-cost legacy aircraft debt and PSP debt.

United ended the quarter with $19.6 billion of available liquidity. Leskinen said the company remains focused on achieving investment-grade credit metrics and is optimistic about its prospects later this year.

About United Airlines NASDAQ: UALUnited Airlines Holdings, Inc operates United Airlines, a major U.S. full-service passenger carrier providing scheduled air transportation for passengers and cargo. The company offers a comprehensive route network that covers domestic markets across the United States as well as extensive international service to Europe, Asia, Latin America, and the Pacific. United operates a mixed fleet of narrow- and wide-body aircraft on point-to-point and hub-and-spoke routes, and supports corporate and leisure travel through offerings such as premium cabins, basic economy, and ancillary services including baggage, seat selection and in-flight amenities.

In addition to passenger operations, United provides cargo services through United Cargo, handling freight, mail and specialized shipments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in United Airlines Right Now?Before you consider United Airlines, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and United Airlines wasn't on the list.

While United Airlines currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.

Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.

Get This Free Report

13.14K Followers

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Q2 diluted earnings per share were $2.46; Q2 adjusted diluted earnings per share2 were $1.99

Full-year adjusted diluted earnings per share guidance1 raised to $9.00 to $11.00

Total operating revenue up 16% year-over-year; Total revenue per available seat mile up 12% year-over-year

Nose-to-tail investments propel revenue growth — and rising customer satisfaction scores — in every cabin; Starlink remains a standout, with 450 aircraft installed and nearly 1,000 expected by year end

United continues to optimize its balance sheet and is targeting an investment-grade rating in 2026

Systemwide on-time departure rate was best Q2 since 2021; Newark posts best-ever Q2 on-time departure results

, /PRNewswire/ -- United Airlines (UAL) today reported a second-quarter profit that exceeded expectations and is near the top-end of guidance. United delivered pre-tax earnings of $1.0 billion, with a pre-tax margin of 5.8%. Adjusted pre-tax earnings2 were $843 million, with an adjusted pre-tax margin2 of 4.8%.

"Our results show why we have been investing in customer improvements throughout every cabin and winning brand-loyal customers," said United CEO Scott Kirby. "United is built to thrive in every environment, and when oil prices spiked in March, we quickly and decisively acted to adjust our schedules, while simultaneously doubling down on our customer investments. Our brand-loyal customers value their travel on United whether they are in Polaris or in Economy. Our network expansions, investment in Starlink, and innovations such as Relax Row are giving customers new reasons to choose United."

Based on oil prices as of July 14th, United expects nearly $6 billion in added fuel expense for full-year 2026 compared to the expectation at the start of the year. In the second quarter fuel expense was up $2.3 billion, or 84% year-over-year and the Company recovered approximately half of this increase. In the third quarter the Company expects to recover approximately 80% to 90% of the increase, and 100% by the fourth quarter. Yields were up 12% during the quarter, showing strong demand for United's product.

Diverse revenue streams all contributed to this quarter's success and United's ongoing resilience: Premium revenue was up 16% compared to the second quarter of 2025, revenue from Basic Economy was up 11%, loyalty revenue was up 11% and cargo revenue was up 23%. Close-in demand remained robust with contracted business revenue up 27% in the quarter. The economy cabin continues to recover with unit revenue up 12%, marking two consecutive quarters of positive growth.

United is investing in customers throughout the aircraft, including the United Relax Row℠ across a row of United Economy®-class seats. During the quarter United installed Starlink on its first widebody aircraft and Starlink is now installed on 450 United mainline and United Express aircraft. United remains on track to bring Starlink to the whole fleet by the end of 2027 — ahead of its large U.S. competitors. Starlink is free for MileagePlus® members and offers the fastest connectivity available for every customer on board. Customer satisfaction scores on flights with Starlink are twice as high as other United flights.

United's first "Born to Explore" Airbus A321XLR is expected to enter domestic service this fall, and will be connecting the U.S. to international destinations by early next year.

United employees delivered for customers throughout the quarter, which included the 10 highest-volume passenger days in United history including a company record for 640,717 customers flown on June 18. United's second-quarter on-time departure rate was its best for the second quarter since 2021, and United achieved the lowest second-quarter seat cancellation rate in its history excluding the pandemic years 2020 and 2021. Newark showed its full recovery from operational challenges a year earlier by posting its best-ever on-time departure results for a second quarter.

During the quarter, United raised $3.7 billion in new liquidity in private bank transactions at attractive rates to provide low cost insurance from geopolitical uncertainty and the possibility of an extreme spike in oil prices. Once fuel prices moderate, United expects to use this cash to further strengthen the balance sheet by opportunistically paying down higher-cost debt and to fund new aircraft deliveries this year and next. Since the beginning of the second quarter, the Company pre-paid approximately $1 billion of higher cost debt. The speed and favorable terms with which United raised this new capital demonstrates United's growing reputation among lenders as it makes progress toward an investment-grade rating this year.

Second-Quarter Financial Results

Capacity up 3.5% compared to second-quarter 2025. Total operating revenue of $17.7 billion, up 16.0% compared to second-quarter 2025. TRASM up 12.1% compared to second-quarter 2025. CASM up 15.2%, and CASM-ex2 up 6.1%, compared to second-quarter 2025. Pre-tax earnings of $1.0 billion, with a pre-tax margin of 5.8%; adjusted pre-tax earnings2 of $843 million, with an adjusted pre-tax margin2 of 4.8%. Net income of $805 million; adjusted net income2 of $649 million. Diluted earnings per share of $2.46; adjusted diluted earnings per share2 of $1.99. Average fuel price per gallon of $4.19. Generated $1.6 billion of operating cash flow. Generated $322 million of free cash flow2. Ending available liquidity3 of $19.6 billion.  Total debt, finance lease obligations and other financial liabilities of $26.5 billion at quarter end. Trailing twelve months net leverage2 of 2.2x. Key Highlights

Achieved the company's best customer satisfaction scores for a second quarter since 2021 and second best of all time as measured by the Net Promoter Score, with record-setting customer satisfaction rates across the check-in experience, food and beverage and inflight entertainment.  Achieved United's highest customer satisfaction score for WiFi since 2023, with more than 450 aircraft currently offering Starlink and nearly 1,000 expected by year-end. Flights with Starlink achieved a customer satisfaction score for Wi-Fi over twice as high as other WiFi-operating aircraft.  Flew the largest domestic schedule in company history, serving 240 airports in the U.S. and Canada. Launched Starlink Wi-Fi on United's first widebody transatlantic flight, marking the first of nearly 60 widebody aircraft expected to be equipped this year. In collaboration with DIRECTV, brought live sports streaming to passengers on select Starlink enabled aircraft throughout June and July — nearly 6,000 flights for a total of 128,000 viewing hours as of July 5. Took delivery of United's first A321XLR aircraft, the first narrowbody featuring United's Elevated interior, including updated United Polaris® and United Premium Plus® seats, screens with Bluetooth connectivity at every seat, and a self-serve snack bar. Increased MileagePlus credit and debit card holder benefits, allowing cardholders to earn even more miles, get redemption discounts of at least 10% on every United award flight they book, and have special access to additional inventory of lowest-priced award tickets. Customer Experience

Released first-of-its-kind digital TSA tracker on the United mobile app, providing estimated wait time updates and timely information on airport security lines at all U.S. hub airports.  Saw the highest ever digital check-in usage rate at 87.7% and record high rate of customers bypassing the lobby at 48.7%, thanks to time-saving improvements like the new Premier Heavy Bag Self-Service, early bag drop solutions at Chicago O'Hare and expanded Touchless ID at kiosks throughout the network. Introduced a new "base" fare option in premium cabins for long-haul international, transcontinental U.S. and select Hawaii flights, giving customers more choice of fares that include the benefits they value most. Recognized for industry leading MileagePlus benefits, including a Best Airline Affinity Credit Card for Leisure award for the United Explorer Card and a special achievement award for outstanding loyalty program from Global Traveler. Expanded collaboration with Lyft, allowing MileagePlus members to redeem airline miles for rides directly in the Lyft app—an industry first for airline and rideshare companies in the U.S. Launched a dedicated Peacock channel on United's inflight entertainment system, including over 1,600 hours of exclusive content, helping United earn Best Airline Entertainment award at Rolling Stone 2026 Travel Awards. Announced new menu items in collaboration with Chef's Table, the brand behind the Emmy award-winning Netflix series, bringing 30 new dishes from world-renowned chefs to United Polaris international business class travelers in August. Business Traveler awarded United best in Drinks Innovation and Business Class Red Wine and Champagne categories. United achieved its best ever second quarter food and beverage customer satisfaction rate since 2021. Launched WhatsApp as an automated customer service channel for use for customers in Brazil, India and Mexico.   Operations

Achieved the lowest second-quarter seat cancel rate in United history excluding the pandemic years 2020 and 2021. Achieved the best on-time departure rate for a second quarter since 2021. Offered the most available seat miles for a quarter among the largest U.S. carriers for the fourteenth quarter in a row.  In June, flew the 10 highest-volume days in company history, including a record of over 640,000 customers in a day, and achieved highest-ever passenger volume for a Memorial Day travel period. Newark achieved its best on-time performance for a second quarter in United history while flying nearly 4.4 million departing passengers. United transported nearly 347 million pounds of cargo – the most for a second quarter since 2020. This includes more than 9 million pounds of medical shipments and 232,000 pounds of military shipments. Network

Launched 27 new routes in the U.S. and Canada, including nine new domestic routes from Chicago-O'Hare.  Began service from New York/Newark to four new transatlantic destinations: Bari, Italy; Split, Croatia; Santiago de Compostela, Spain; and Glasgow, Scotland, and launched service between Washington/Dulles and Reykjavik, Iceland. Began offering United customers the brand new 787-9 with Elevated interior on flights between San Francisco and Singapore and London. The new premium configured aircraft features 99 total premium seats including 8 United Polaris Studio℠ suites and 56 United Polaris seats. United announced plans to launch service later this year to five new destinations: Caracas, Venezuela; Cartagena, Colombia; Sapporo, Japan; St. Croix, U.S. Virgin Islands; and Tuxtla Gutierrez, Mexico. Announced four new routes to existing destinations including Chicago to Tokyo-Narita; Washington/Dulles to Los Cabos, Mexico; Denver to Providenciales, Turks and Caicos; and Houston to Santo Domingo, Dominican Republic. Employees, Communities and Investments

Unveiled a special 250th anniversary stars and stripes livery, honoring United's active-duty service members and veterans. United and its MileagePlus members donated nearly 16 million miles to nonprofits worldwide.  United employees volunteered nearly 15,000 hours, participating in amenity-kit upcycling, Make-A-Wish Wish Granter training, meal packing, and more. Supported transport of hundreds of emergency responders and vital supplies into areas impacted by Typhoon Sinlaku. Fulfilled the largest Make-a-Wish wish send-off in United history, sending 40 families to Orlando from Chicago, and hosting immersive events across the U.S. that generated more than 7 million miles to support Wish Kid's travel. United provided travel support for over 600 athletes and Disabled American Veterans (DAV) staff members attending the National Disabled Veterans Winter Sports Clinic, an adaptive sports clinic for veterans. Recognized as a leading employer and brand, earning a spot on LinkedIn's list of 10 best employers to grow a career in Chicago, TIME's first-ever World's Growth Leaders 2026 list and named one of America's High-Growth Companies for 2026 by Business Insider. Became the first U.S. airline to begin recycling on all flights arriving at LAX from outside the U.S. and Canada, setting a precedent for international airline recycling. United began recycling on domestic routes in 2010. The Executives' Club of Chicago named CEO Scott Kirby "International Executive of the Year" and Government Affairs and Global Public Policy Executive Vice President Terri Fariello was named one of "Washington DC's 500 Most Influential People of 2026" by the Washingtonian. Recognized at the Halo Awards for Best Emergency/Disaster Response Initiative for United's commitment to non-profit partnerships and employees who aid communities in need. Earnings Call

UAL will hold a conference call to discuss second-quarter 2026 financial results, as well as its financial and operational outlook for the third-quarter 2026 and beyond, on Thursday, July 16, 2026 at 9:30 a.m. CDT/10:30 a.m. EDT. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website.

Outlook

This press release should be read in conjunction with the company's Investor Update issued in connection with this quarterly earnings announcement, which provides additional information on the company's business outlook (including certain financial and operational guidance) and is furnished with this press release to the U.S. Securities and Exchange Commission on a Current Report on Form 8-K. The Investor Update is also available at ir.united.com. Management will also discuss certain business outlook items, including certain financial targets for the third quarter 2026 and beyond, during the quarterly earnings conference call.

The company's business outlook is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. Please see the section entitled "Cautionary Statement Regarding Forward-Looking Statements."

About United

At United, Good Leads The Way. With hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".

Website and Social Media Information

We routinely post important news and information regarding United on our corporate website, www.united.com, and our investor relations website, ir.united.com. We use our investor relations website as a primary channel for disclosing key information to our investors, including the timing of future investor conferences and earnings calls, press releases and other information about financial performance (including financial guidance), reports filed or furnished with the U.S. Securities and Exchange Commission, information on corporate governance and details related to our annual meeting of shareholders. We may use our investor relations website as a means of disclosing material, non-public information (including financial guidance) and for complying with our disclosure obligations under Regulation FD. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted. We may also use social media channels to communicate with our investors and the public about our company and other matters, and those communications could be deemed to be material information. Our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest to our investors or could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.

Cautionary Statement Regarding Forward-Looking Statements: 
This press release and the related attachments and Investor Update (as well as the oral statements made with respect to information contained in this release and the attachments) contain certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to, among other things, goals, plans and projections regarding the company's financial position, results of operations, capital allocation and investments, market position, airline capacity, fleet plan strategy, fares, announced routes (which may be subject to government approval), booking trends, product development, corporate citizenship-related strategy initiatives and business strategy. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about the company's future financial results, goals, plans, commitments, strategies and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond the company's control and could cause the company's future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals," "targets," "pledge," "confident," "optimistic," "dedicated," "positioned," "on track", "path" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.

Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.

Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: execution risks associated with our strategic operating plan; changes in our fleet and network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into aircraft orders on less favorable terms, as well as any inability to accept or integrate new aircraft into our fleet as planned, including as a result of any mandatory groundings of aircraft; any failure to effectively manage, and receive anticipated benefits and returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions, or related exposures to unknown liabilities or other issues or underperformance as compared to our expectations; adverse publicity, increased regulatory scrutiny, harm to our brand, reduced travel demand, potential tort liability and operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners or another airline; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity, including as a result of alliances, joint business arrangements or other consolidations; unfavorable developments affecting our MileagePlus loyalty program our reliance on a limited number of suppliers to source a majority of our aircraft, engines and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; disruptions to our regional network and United Express flights provided by third-party regional carriers; unfavorable economic and political conditions in the United States and globally; reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; extended interruptions or disruptions in service at major airports where we operate and space, facility and infrastructure constraints at our hubs or other airports (including as a result of government shutdowns); geopolitical conflict, terrorist attacks or security events (including the suspension of our overflying in Russian airspace as a result of the Russia-Ukraine military conflict and interruptions of our flying as a result of the military conflicts across the globe, as well as any escalation of the broader economic consequences of any conflicts beyond their current scope or a delay in any planned resumption of service to area impacted by conflict); any damage to our reputation or brand image; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, these technologies or systems; increasing privacy, data security and cybersecurity obligations or a significant data breach; increased use of social media platforms by us, our employees and others; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions or regulatory compliance costs on our operations or financial performance; any failure to attract, train or retain skilled personnel, including our senior management team or other key employees; the monetary and operational costs of compliance with extensive government regulation of the airline industry; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or agreement relating to these actions; costs, liabilities and risks associated with environmental regulation and climate change; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel, including as a result of the geopolitical conflicts in the Middle East; the impacts of our significant amount of financial leverage from fixed obligations and the impacts of insufficient liquidity on our financial condition and business; failure to comply with financial and other covenants governing our debt; limitations on our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; fluctuations in the price of our common stock; the impacts of seasonality, and other factors associated with the airline industry; increases in insurance costs or inadequate insurance coverage; risks relating to our repurchase program for shares of common stock and certain warrants exercisable for common stock; and other risks and uncertainties set forth in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 and in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Quarterly Report on Form 10-Q for the period ended March 31, 2026, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

Non-GAAP Financial Information:
In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the company's underlying financial performance and trends and facilitate comparisons among current, past and future periods. Non-GAAP financial measures typically have exclusions or adjustments that include one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded because the company believes they neither relate to the ordinary course of the company's business nor reflect the company's underlying business performance.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The company does not provide a reconciliation of forward-looking measures where the company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the company's control or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Please refer to the tables accompanying this release for a description of the non-GAAP adjustments and reconciliations of the historical non-GAAP financial measures used to the most comparable GAAP financial measure and related disclosures.

-tables attached-

UNITED AIRLINES HOLDINGS, INC.

STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) 

Three Months Ended
June 30,

%

Increase/

(Decrease)

Six Months Ended
June 30,

%

Increase/

(Decrease)

(In millions, except for percentage changes and per share data)

2026

2025

2026

2025

Operating revenue:

Passenger revenue

$ 16,100

$ 13,836

16.4

$ 29,267

$ 25,696

13.9

Cargo revenue

527

430

22.6

949

859

10.5

Other operating revenue

1,045

970

7.7

2,064

1,893

9.1

Total operating revenue

17,672

15,236

16.0

32,280

28,448

13.5

Operating expense:

Salaries and related costs

4,686

4,413

6.2

9,248

8,568

7.9

Aircraft fuel

5,110

2,775

84.1

8,150

5,476

48.8

Landing fees and other rent

1,056

961

9.9

2,004

1,834

9.3

Aircraft maintenance materials and outside repairs

906

865

4.7

1,760

1,596

10.3

Depreciation and amortization

762

733

3.9

1,518

1,461

3.9

Regional capacity purchase

743

676

9.8

1,435

1,326

8.2

Distribution expenses

644

487

32.3

1,167

983

18.6

Aircraft rent

112

67

67.4

195

118

65.0

Special charges (credits)

(145)

447

NM

(534)

340

NM

Other operating expenses

2,702

2,487

8.6

5,245

4,814

9.0

Total operating expense

16,576

13,911

19.2

30,187

26,516

13.8

Operating income

1,096

1,325

(17.3)

2,093

1,932

8.3

Nonoperating income (expense):

Interest expense

(343)

(361)

(5.1)

(670)

(717)

(6.6)

Interest income

148

167

(10.8)

284

331

(14.2)

Interest capitalized

59

51

16.7

113

98

15.2

Unrealized gains on investments, net

40

26

NM

26

5

NM

Miscellaneous, net

26

41

(37.4)

50

77

(35.0)

Total nonoperating expense, net

(69)

(77)

(9.5)

(196)

(206)

(4.6)

Income before income taxes

1,026

1,248

(17.8)

1,897

1,727

9.9

Income tax expense

221

275

(19.4)

393

366

7.4

Net income

$      805

$      973

(17.3)

$   1,504

$  1,361

10.5

Earnings per share, diluted

$     2.46

$     2.97

(17.2)

$     4.60

$    4.12

11.7

Diluted weighted-average shares outstanding

326.6

327.2

(0.2)

326.7

330.1

(1.0)

NM-Greater than 100% change or otherwise not meaningful.

 `

UNITED AIRLINES HOLDINGS, INC.

PASSENGER REVENUE INFORMATION AND STATISTICS (UNAUDITED)

Information is as follows (in millions, except for percentage changes):

2Q 2026

Passenger
Revenue

Passenger

Revenue

vs.

2Q 2025

Passenger
Revenue
per
Available
Seat Mile
("PRASM")
vs. 2Q 2025

Yield vs. 2Q
2025

Available

Seat Miles
("ASMs")

vs.

2Q 2025

2Q 2026 
ASMs

2Q 2026
Revenue
Passenger
Miles
("RPMs")

Domestic

$     9,506

20.3 %

12.2 %

13.0 %

7.2 %

48,330

40,375

Europe

3,199

10.2 %

10.4 %

9.0 %

(0.2 %)

17,270

14,119

Middle East/India/Africa

225

(16.4 %)

27.5 %

22.8 %

(34.4 %)

1,309

1,127

Atlantic

3,424

7.9 %

12.1 %

10.6 %

(3.8 %)

18,579

15,246

Pacific

1,788

18.7 %

14.0 %

10.9 %

4.1 %

11,487

9,692

Latin America

1,382

10.5 %

10.7 %

10.7 %

(0.2 %)

8,883

7,452

International

6,594

11.2 %

12.0 %

10.4 %

(0.8 %)

38,949

32,390

Consolidated

$    16,100

16.4 %

12.5 %

12.1 %

3.5 %

87,279

72,765

Select operating statistics are as follows:

Three Months Ended
June 30,

%

Increase/

(Decrease)

Six Months Ended
June 30,

%

Increase/

(Decrease)

2026

2025

2026

2025

Passengers (thousands) (a)

48,692

46,186

5.4

91,178

86,992

4.8

RPMs (millions) (b)

72,765

70,088

3.8

136,150

129,604

5.1

ASMs (millions) (c)

87,279

84,347

3.5

164,977

159,503

3.4

Passenger load factor: (d)

Consolidated

83.4 %

83.1 %

0.3

pts.

82.5 %

81.3 %

1.3

pts.

Domestic

83.5 %

84.1 %

(0.6)

pts.

82.7 %

82.3 %

0.4

pts.

International

83.2 %

81.9 %

1.2

pts.

82.3 %

80.1 %

2.3

pts.

PRASM (cents)

18.45

16.40

12.5

17.74

16.11

10.1

Total revenue per available seat mile ("TRASM") (cents)

20.25

18.06

12.1

19.57

17.84

9.7

Average yield per RPM (cents) (e)

22.13

19.74

12.1

21.50

19.83

8.4

Cargo revenue ton miles (millions) (f)

932

885

5.3

1,810

1,774

2.0

Aircraft in fleet at end of period

1,552

1,473

5.4

1,552

1,473

5.4

Average stage length (miles) (g)

1,460

1,508

(3.2)

1,462

1,482

(1.3)

Employee headcount, as of June 30 (thousands)

117.5

111.3

5.6

117.5

111.3

5.6

Cost per ASM ("CASM") (cents)

18.99

16.49

15.2

18.30

16.62

10.1

CASM-ex (cents) (h)

13.12

12.36

6.1

13.51

12.74

6.0

Average aircraft fuel price per gallon

$  4.19

$  2.34

79.4

$ 3.53

$ 2.43

45.1

Fuel gallons consumed (millions)

1,219

1,188

2.7

2,312

2,254

2.6

(a)  The number of revenue passengers measured by each flight segment flown.

(b)  The number of scheduled miles flown by revenue passengers.

(c)  The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.

(d)  RPMs divided by ASMs.

(e)  The average passenger revenue received for each RPM flown.

(f)   The number of cargo revenue tons transported multiplied by the number of miles flown.

(g)  Average distance a flight travels weighted for size of aircraft.

(h)  CASM-ex is CASM less the impact of fuel expense, profit sharing, special charges and third-party business expenses. See NON-GAAP FINANCIAL INFORMATION for a reconciliation of CASM-ex to CASM, the most comparable GAAP measure.

UNITED AIRLINES HOLDINGS, INC.

2 NON-GAAP FINANCIAL INFORMATION

UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and non-GAAP financial measures. The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages, ratios and earnings per share amounts presented are calculated from the underlying amounts.

CASM-ex: CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel expense, and profit sharing. UAL believes that adjusting for special charges is useful to investors because those items are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, flight academy, ground handling and catering services for third parties, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel expense from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because it believes that this exclusion allows investors to better understand and analyze UAL's operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Adjusted EBITDA and Adjusted EBITDAR: We calculate Adjusted EBITDA by adding interest, taxes, depreciation and amortization to net income and adjusting for special charges, nonoperating unrealized (gains) losses on investments, net and nonoperating debt extinguishment and modification fees. UAL believes that adjusting for these items is useful to investors because they are not indicative of UAL's ongoing performance. Adjusted EBITDA is further adjusted by the fixed portion of operating lease expense to calculate Adjusted EBITDAR to provide investors with enhanced comparability to our peers and better reflect our performance.

Adjusted Capital Expenditures: UAL believes that adjusting capital expenditures for assets acquired through the issuance or modification of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures.

Free Cash Flow: We define free cash flow as the sum of net cash from operating activities and net cash from investing activities, adjusted for the net change in short-term investments and the net change in restricted cash. We believe adjusting for short-term investments and restricted cash activity provides investors a better understanding of the company's free cash flow generated by our core operations. We also believe our methodology provides investors with enhanced comparability to our peers and better reflects our performance. 

Adjusted Total Debt and Adjusted Net Debt: Adjusted total debt is a non-GAAP financial measure that includes current and long-term debt, finance lease obligations and other financial liabilities, current and noncurrent operating lease obligations and noncurrent pension and postretirement obligations. Adjusted net debt is adjusted total debt minus cash, cash equivalents and short-term investments. UAL provides adjusted total debt and adjusted net debt because we believe these measures provide useful supplemental information for assessing the company's debt and debt-like obligation profile.

Net Leverage: Net leverage is a non-GAAP financial measure that is equal to adjusted net debt divided by trailing twelve month Adjusted EBITDAR. UAL provides net leverage because we believe it provides useful supplemental information for assessing the company's debt level. See the above descriptions of Adjusted Net Debt and Adjusted EBITDAR.

Three Months Ended
June 30,

%

Increase/

(Decrease)

Six Months Ended
June 30,

%

Increase/

(Decrease)

CASM-ex (in cents, except for percentage changes)

2026

2025

2026

2025

CASM (GAAP)

18.99

16.49

15.2

18.30

16.62

10.1

Fuel expense

5.85

3.29

77.9

4.94

3.43

43.9

Profit sharing

0.10

0.22

(53.5)

0.09

0.15

(37.4)

Third-party business expenses

0.08

0.09

(9.4)

0.08

0.09

(8.9)

Special charges (credits)

(0.17)

0.53

NM

(0.32)

0.21

NM

CASM-ex (Non-GAAP)

13.12

12.36

6.1

13.51

12.74

6.0

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL INFORMATION (Continued)

Three Months Ended
June 30,

Six Months Ended
June 30,

Twelve Months Ended
June 30,

Adjusted EBITDA and Adjusted EBITDAR (in millions)

2026

2025

2026

2025

2026

2025

Net income (GAAP)

$  805

$  973

$ 1,504

$ 1,361

$ 3,496

$ 3,310

Adjusted for:

Depreciation and amortization

762

733

1,518

1,461

2,997

2,961

Interest expense, net of capitalized interest and interest income

135

144

273

288

541

572

Income tax expense

221

275

393

366

980

1,009

Special charges (credits)

(145)

447

(534)

340

(615)

403

Nonoperating unrealized (gains) losses on investments, net

(40)

(26)

(26)

(5)

(26)

125

Nonoperating debt extinguishment and modification fees

1

—

5

—

25

93

Adjusted EBITDA (non-GAAP)

$ 1,740

$ 2,547

$ 3,133

$ 3,809

$ 7,399

$ 8,475

Adjusted EBITDA margin (non-GAAP)

9.8 %

16.7 %

9.7 %

13.4 %

11.8 %

14.6 %

Adjusted EBITDA (non-GAAP)

$ 1,740

$ 2,547

$ 3,133

$ 3,809

$ 7,399

$ 8,475

Fixed portion of operating lease expense

269

221

514

433

975

877

Adjusted EBITDAR (non-GAAP)

$ 2,010

$ 2,768

$ 3,647

$ 4,243

$ 8,373

$ 9,352

Three Months Ended June 30,

Six Months Ended June 30,

Adjusted Capital Expenditures (in millions)

2026

2025

2026

2025

Capital expenditures, net of flight equipment purchase deposit returns          
(GAAP)

$      1,343

$      1,287

$      3,015

$      2,520

Property and equipment acquired through the issuance or
modification of debt, finance leases and other financial liabilities

63

(51)

86

(52)

Operating leases converted to finance leases

42

—

66

—

Adjusted capital expenditures (Non-GAAP)

$      1,448

$      1,236

$      3,167

$      2,468

Three Months Ended
June 30,

Six Months Ended
June 30,

Twelve Months Ended
June 30,

Free Cash Flow (in millions)

2026

2025

2026

2025

2026

2025

Net cash provided by operating activities (GAAP)                         

$   1,609

$   2,217

$   6,409

$   5,927

$   8,912

$   9,649

Net cash used in investing activities (GAAP)

(1,459)

(1,580)

(3,354)

(3,042)

(6,662)

(7,268)

Adjusted for:

Net change in short-term investments

173

302

173

556

209

1,878

Net change in restricted cash

(1)

191

(3)

1

34

74

Free cash flow (Non-GAAP)

$     322

$   1,130

$   3,225

$   3,442

$   2,493

$   4,333

June 30,

Increase/

(Decrease)

Adjusted Total Debt, Adjusted Net Debt and Net Leverage (in millions, except ratios)

2026

2025

Debt, finance lease obligations and other financial liabilities - current and noncurrent (GAAP)

$ 26,464

$ 27,079

$     (614)

Operating lease obligations - current and noncurrent

7,204

5,707

1,497

Pension and postretirement liabilities - noncurrent

1,074

1,199

(125)

Adjusted total debt (Non-GAAP)

$ 34,742

$ 33,985

758

Less: Cash and cash equivalents

$ 10,166

$   9,354

811

         Short-term investments

6,471

6,262

209

Adjusted net debt (Non-GAAP)

$ 18,105

$ 18,368

(263)

Net leverage (Non-GAAP)

2.2

2.0

0.2

pts.

UNITED AIRLINES HOLDINGS, INC.

NON-GAAP FINANCIAL INFORMATION (Continued)

Three Months Ended
June 30,

%

Increase/

(Decrease)

Six Months Ended
June 30,

%

Increase/

(Decrease)

(in millions, except for percentage changes and per
share data)

2026

2025

2026

2025

Operating expenses (GAAP)

$ 16,576

$ 13,911

19.2

$ 30,187

$ 26,516

13.8

Special charges (credits)

(145)

447

NM

(534)

340

NM   

Operating expenses, excluding special charges

16,721

13,463

24.2

30,721

26,176

17.4

Adjusted to exclude:

Fuel expense

5,110

2,775

84.1

8,150

5,476

48.8

Profit sharing

90

188

(51.9)

150

231

(35.3)

Third-party business expenses

68

72

(6.3)

132

141

(5.7)

Adjusted operating expenses (Non-GAAP)

$ 11,453

$ 10,428

9.8

$ 22,289

$ 20,328

9.6

Operating income (GAAP)

$   1,096

$   1,325

(17.3)

$   2,093

$   1,932

8.3

Special charges (credits)

(145)

447

NM

(534)

340

NM   

Adjusted operating income (Non-GAAP)

$      951

$   1,772

(46.3)

$   1,559

$   2,272

(31.4)

Operating margin

6.2 %

8.7 %

(2.5)

pts.

6.5 %

6.8 %

(0.3)

pts.

Adjusted operating margin (Non-GAAP)

5.4 %

11.6 %

(6.2)

pts.

4.8 %

8.0 %

(3.2)

pts.

Pre-tax income (GAAP)

$   1,026

$   1,248

(17.8)

$   1,897

$   1,727

9.9

Adjusted to exclude:

Special charges (credits)

(145)

447

NM

(534)

340

NM   

Unrealized gains on investments, net

(40)

(26)

NM

(26)

(5)

NM   

Debt extinguishment and modification fees

1

—

NM

5

—

NM   

Adjusted pre-tax income (Non-GAAP)

$      843

$   1,670

(49.5)

$   1,342

$   2,061

(34.9)

Pre-tax margin (GAAP)

5.8 %

8.2 %

(2.4)

pts.

5.9 %

6.1 %

(0.2)

pts.

Adjusted pre-tax margin (Non-GAAP)

4.8 %

11.0 %

(6.2)

pts.

4.2 %

7.2 %

(3.1)

pts.

 Net income (GAAP)

$      805

$      973

(17.3)

$   1,504

$   1,361

10.5

Adjusted to exclude:

Special charges (credits)

(145)

447

NM

(534)

340

NM   

Unrealized gains on investments, net

(40)

(26)

NM

(26)

(5)

NM   

Debt extinguishment and modification fees

1

—

NM

5

—

NM   

Income tax expense on adjustments, net

27

(128)

NM

89

(127)

NM   

Adjusted net income (Non-GAAP)

$      649

$   1,267

(48.7)

$   1,038

$   1,568

(33.8)

 Diluted earnings per share (GAAP)

$     2.46

$     2.97

(17.2)

$     4.60

$     4.12

11.7

Adjusted to exclude:

Special charges (credits)

(0.44)

1.37

NM

(1.63)

1.03

NM   

Unrealized gains on investments, net

(0.12)

(0.08)

NM

(0.08)

(0.01)

NM   

Debt extinguishment and modification fees

—

—

NM

0.02

—

NM   

Income tax expense on adjustments, net 

0.09

(0.39)

NM

0.27

(0.38)

NM   

Adjusted diluted earnings per share (Non-GAAP)

$     1.99

$     3.87

(48.6)

$     3.18

$     4.75

(33.1)

UNITED AIRLINES HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 (in millions)

June 30, 2026
(UNAUDITED)

December 31, 2025

ASSETS

Cash and cash equivalents

$              10,166

$             5,942

Short-term investments

6,471

6,298

Receivables, net

2,473

2,391

Aircraft fuel, spare parts and supplies, net

1,795

1,556

Prepaid expenses and other

759

671

Total current assets

21,664

16,857

Operating property and equipment, net

47,958

46,121

Operating lease right-of-use assets

6,161

4,958

Goodwill

4,527

4,527

Intangible assets, net

2,645

2,655

Investments in affiliates and other, net

1,614

1,330

Total noncurrent assets

62,905

59,591

Total assets

$              84,569

$            76,448

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

$                5,772

$              4,567

Accrued salaries and benefits

3,458

3,900

Advance ticket sales

10,752

8,131

Frequent flyer deferred revenue

3,939

3,721

Current maturities of long-term debt, finance leases, and other financial liabilities

2,170

4,426

Current maturities of operating leases

818

631

Other

854

757

Total current liabilities

27,764

26,133

Long-term debt, finance leases, and other financial liabilities

24,294

20,562

Long-term obligations under operating leases

6,386

5,417

Frequent flyer deferred revenue

4,032

4,056

Pension and postretirement benefit liability

1,074

1,058

Deferred income taxes

2,822

2,463

Other

1,500

1,478

Total noncurrent liabilities

40,108

35,033

Total stockholders' equity

16,697

15,282

Total liabilities and stockholders' equity

$              84,569

$            76,448

UNITED AIRLINES HOLDINGS, INC.

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)

 (in millions)

Six Months Ended June 30,

2026

2025

Operating Activities:

Net cash provided by operating activities

$         6,409

$         5,927

Investing Activities:

Capital expenditures, net of flight equipment purchase deposit returns

(3,015)

(2,520)

Purchases of short-term and other investments

(4,439)

(4,722)

Proceeds from sale of short-term and other investments

4,179

4,222

Proceeds from sale of property and equipment

33

48

Other, net

(111)

(70)

Net cash used in investing activities

(3,354)

(3,042)

Financing Activities:

Proceeds from issuance of debt and other financial liabilities, net of discounts and fees

5,829

—

Payments of long-term debt, finance leases and other financial liabilities

(4,537)

(1,611)

Repurchases of common stock

(27)

(589)

Other, net

(93)

(99)

Net cash provided by (used in) financing activities

1,172

(2,300)

Net increase in cash, cash equivalents and restricted cash

4,227

585

Cash, cash equivalents and restricted cash at beginning of the period

6,081

8,946

Cash, cash equivalents and restricted cash at end of the period (a)

$       10,308

$         9,531

Investing and Financing Activities Not Affecting Cash:

Right-of-use assets acquired or modified through operating leases

$         1,485

$            973

Property and equipment acquired through the issuance or modification of debt, finance leases and
other financial liabilities

86

(52)

Operating leases converted to finance leases

66

—

Investment interests received in exchange for loans, goods and services

60

14

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed 
consolidated balance sheets:

Cash and cash equivalents

$       10,166

$         9,354

Restricted cash in Prepaid expenses and other

—

8

Restricted cash in Investments in affiliates and other, net

142

168

Total cash, cash equivalents and restricted cash

$       10,308

$         9,531

UNITED AIRLINES HOLDINGS, INC.

NOTES (UNAUDITED)

 Special charges (credits) and unrealized gains on investments, net include the following:

Three Months Ended
June 30,

Six Months Ended
June 30,

(in millions)

2026

2025

2026

2025

Operating:

Labor contract ratification bonuses

$    184

$     561

$    184

$    561

(Gains) losses on sale of assets and other special charges

(329)

(114)

(718)

(222)

Total operating special charges (credits)

(145)

447

(534)

340

Nonoperating:

Nonoperating unrealized gains on investments, net

(40)

(26)

(26)

(5)

Nonoperating debt extinguishment and modification fees

1

—

5

—

     Total nonoperating special charges and unrealized gains on investments, net

(38)

(26)

(21)

(5)

Total operating and nonoperating special charges (credits) and unrealized gains on
investments, net

(183)

422

(555)

335

Income tax expense (benefit), net of valuation allowance

27

(128)

89

(127)

    Total operating and nonoperating special charges (credits) and unrealized gains on
investments, net of income taxes

$   (156)

$     293

$   (466)

$    208

During the three and six months ended June 30, 2026, the company recorded $184 million of expense associated with the recently ratified agreements with the company's flight attendants represented by the Association of Flight Attendants ("AFA") and the company's fleet technical instructors, storekeepers, maintenance instructors and security officers represented by the International Association of Machinists and Aerospace Workers. During the three and six months ended June 30, 2025, the company recorded a $561 million special charge in connection with the then-existing tentative agreement with its flight attendants represented by the AFA.

During the three and six months ended June 30, 2026, the company recorded $329 million and $718 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $351 million and $796 million, respectively, of gains on various aircraft sale-leaseback transactions. During the three and six months ended June 30, 2025, the company recorded $114 million and $222 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $151 million and $261 million, respectively, of gains on various aircraft sale-leaseback transactions.

The company's effective tax rates were as follows:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Effective tax rate

21.6 %

22.0 %

20.7 %

21.2 %

The provision for income taxes is based on the estimated annual effective tax rate, which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items.

1 Adjusted diluted earnings per share is a non-GAAP financial measure that excludes operating and non-operating special charges, unrealized (gains) losses on investments, net, and income tax expense (benefit) on adjustments, net. We are not providing a target for or a reconciliation to diluted earnings per share, the most directly comparable GAAP measure, because we are unable to predict the excluded items noted above contained in the GAAP measure without unreasonable efforts, and therefore we also are not able to determine the probable significance of such items. Please see the Investor Update issued in connection with this quarterly earnings release for more information.

2 For additional information about the non-GAAP financial measures used in this press release, see "Non-GAAP Financial Information" below.

SOURCE United Airlines

For the quarter ended June 2026, United Airlines (UAL - Free Report) reported revenue of $17.67 billion, up 16% over the same period last year. EPS came in at $1.99, compared to $3.87 in the year-ago quarter.

The reported revenue represents a surprise of -0.05% over the Zacks Consensus Estimate of $17.68 billion. With the consensus EPS estimate being $1.92, the EPS surprise was +3.65%.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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: 83.4% compared to the 84.4% average estimate based on four analysts.Total revenue per available seat mile (TRASM): 20.25 cents versus the three-analyst average estimate of 20.36 cents.CASM-ex (excluding special charges, third-party business expenses, fuel, and profit sharing): 13.12 cents versus the three-analyst average estimate of 13.05 cents.Average aircraft fuel price per gallon: $4.19 compared to the $4.23 average estimate based on three analysts.ASMs (Available seat miles): 87.28 billion versus 86.89 billion estimated by three analysts on average.PRASM (Passenger revenue per available seat mile): 18.45 cents versus the three-analyst average estimate of 18.61 cents.RPMs (Revenue passenger miles): 72.77 billion compared to the 73.71 billion average estimate based on three analysts.Cost per ASM (CASM): 18.99 cents compared to the 19.16 cents average estimate based on two analysts.Fuel gallons consumed: 1,219.00 MGal versus 1,217.52 MGal estimated by two analysts on average.Operating revenue- Passenger revenue: $16.1 billion versus $16.12 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +16.4% change.Operating revenue- Other operating revenue: $1.05 billion compared to the $1.06 billion average estimate based on four analysts. The reported number represents a change of +7.7% year over year.Operating revenue- Cargo: $527 million versus the four-analyst average estimate of $458.59 million. The reported number represents a year-over-year change of +22.6%.View all Key Company Metrics for United here>>>

Shares of United have returned +1.6% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

The carrier said that adjusted earnings should hit $9 to $11 a share in 2026, lifting the low-end of its previous target by $2 a share.

HomeIndustriesAirlinesEarnings ResultsEarnings ResultsInvestors zero in on a potentially fatter jet-fuel bill for United, dragging the stock downJuly 15, 2026, 5:05 p.m. ET

United Airlines late Wednesday reported earnings that topped Wall Street’s expectations and raised its guidance for the year. It didn’t seem to matter.

Investors zeroed in on United’s potentially fatter jet-fuel bill — the airline said it expects nearly $6 billion in additional fuel expenses for the year, based on crude prices as of Tuesday. The airline said it aims to recover some of it.

United Airlines Holdings Inc (NASDAQ:UAL, XETRA:UAL1) will report second-quarter earnings after the market close on Wednesday, with investors focused on how the carrier is managing rising fuel costs against resilient travel demand.

UBS analysts said the bar for second-quarter earnings per share sits at $1.85 to $1.90, well above the midpoint of United's own $1 to $2 guidance.

UBS forecasts EPS of $1.91, ahead of the $1.86 consensus, on 3% capacity growth, a 12.8% rise in unit revenue, unit costs excluding fuel up 7%, and fuel at $4.25 per gallon.

Fuel will be a key focus. United typically updates fuel guidance the Friday before earnings, but a sharp jump in jet fuel prices has made the outlook harder to pin down. Gulf Coast jet fuel was trading near $3.60 per gallon and West Coast jet fuel near $3.90, UBS said, and the market will likely benchmark United's assumption against $3.30 to $3.40 per gallon.

Consensus for third-quarter EPS guidance sits at $3 to $4; a higher fuel assumption would push that lower. UBS said the most important signal will be management's confidence in recovering nearly all of the recent fuel spike by the fourth quarter.

For full-year 2026, most investors expect EPS guidance of $9 to $11, above the current $7 to $11 range, though the outlook remains fuel-dependent. UBS said the key metrics to watch will be United's fourth-quarter capacity outlook and its implied fourth-quarter revenue growth.

United shares have gained around 8% year-to-date.

The carrier's earnings come just days after its rival Delta Air Lines reported but the landscape for the sector has shifted dramatically in that short time.

Shares of United Airlines (UAL - Free Report) have gained 1% over the past four weeks to close the last trading session at $121.16, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $153.43 indicates a potential upside of 26.6%.

The mean estimate comprises 24 short-term price targets with a standard deviation of $19.59. While the lowest estimate of $110.00 indicates a 9.2% decline from the current price level, the most optimistic analyst expects the stock to surge 52.7% to reach $185.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in UAL. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why UAL Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 9%, as six estimates have moved higher while two have gone lower.

Moreover, UAL currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much UAL could gain, the direction of price movement it implies does appear to be a good guide.

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.

Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.

It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

There are several stocks that currently pass through the screen and United Airlines (UAL - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.

A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 1%, the stock of this airline is certainly well-positioned in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. UAL meets this criterion too, as the stock gained 22.5% over the past 12 weeks.

Moreover, the momentum for UAL is fast paced, as the stock currently has a beta of 1.25. This indicates that the stock moves 25% higher than the market in either direction.

Given this price performance, it is no surprise that UAL has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped UAL earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, UAL is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. UAL is currently trading at 0.65 times its sales. In other words, investors need to pay only 65 cents for each dollar of sales.

So, UAL appears to have plenty of room to run, and that too at a fast pace.

In addition to UAL, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Analysts on Wall Street project that United Airlines (UAL - Free Report) will announce quarterly earnings of $1.89 per share in its forthcoming report, representing a decline of 51.2% year over year. Revenues are projected to reach $17.68 billion, increasing 16% from the same quarter last year.

Over the last 30 days, there has been an upward revision of 24.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific United metrics that are commonly monitored and projected by Wall Street analysts.

Analysts expect 'Operating revenue- Passenger revenue' to come in at $16.12 billion. The estimate points to a change of +16.5% from the year-ago quarter.

Analysts predict that the 'Operating revenue- Other operating revenue' will reach $1.06 billion. The estimate indicates a change of +8.9% from the prior-year quarter.

Analysts' assessment points toward 'Operating revenue- Cargo' reaching $458.59 million. The estimate suggests a change of +6.7% year over year.

The consensus among analysts is that 'Passenger load factor - Consolidated' will reach 84.4%. Compared to the current estimate, the company reported 83.1% in the same quarter of the previous year.

The consensus estimate for 'Total revenue per available seat mile (TRASM)' stands at N/A. The estimate is in contrast to the year-ago figure of N/A.

Analysts forecast 'CASM-ex (excluding special charges, third-party business expenses, fuel, and profit sharing)' to reach N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.

The collective assessment of analysts points to an estimated 'ASMs (Available seat miles)' of 86.89 billion. The estimate compares to the year-ago value of 84.35 billion.

The combined assessment of analysts suggests that 'PRASM (Passenger revenue per available seat mile)' will likely reach N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.

It is projected by analysts that the 'RPMs (Revenue passenger miles)' will reach 73.71 billion. Compared to the present estimate, the company reported 70.09 billion in the same quarter last year.

According to the collective judgment of analysts, 'Cost per ASM (CASM)' should come in at N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Fuel gallons consumed' should arrive at 1218 millions of gallons. The estimate compares to the year-ago value of 1188 millions of gallons.

The average prediction of analysts places 'Average yield per RPM' at N/A. The estimate is in contrast to the year-ago figure of N/A.

View all Key Company Metrics for United here>>>

Over the past month, United shares have recorded returns of +14.6% versus the Zacks S&P 500 composite's +2.2% change. Based on its Zacks Rank #3 (Hold), UAL will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Getting better seats on the plane is getting cheaper—and more complicated.

A federal judge on Monday refused to dismiss a proposed class-action lawsuit accusing United Airlines of charging passengers extra for “window seats” that lacked actual windows, allowing the case to move forward.

U.S. District Judge James Donato ruled the plaintiffs plausibly alleged United breached its contractual obligations by selling seats identified as window seats even though some were positioned next to solid cabin walls rather than windows.

“These terms plausibly establish that United expressly agreed to provide a seat with a window to passengers who paid for one,” Donato wrote, adding that United’s reservation screens and boarding passes represented that customers had purchased window seats. “No more is needed at this stage for the breach claims to go forward.”

The lawsuit alleges United knowingly charged passengers extra for certain window seats on aircraft, including Boeing 737s, Boeing 757s and Airbus A321s, even though some seats lacked adjacent windows because of aircraft design. Plaintiffs claim passengers often pay premiums for window seats to enjoy the view or help alleviate anxiety, claustrophobia or motion sickness.

A United Airlines aircraft taxis near a runway marker at Palm Beach International Airport. Chris Beckett/ZUMA / SplashNews.com United argued the lawsuit should be dismissed, saying “window seat” describes a seat’s location relative to the aisle rather than guaranteeing an actual window and contending federal law preempts the claims. Donato rejected those arguments at this stage of the litigation.

United declined to comment on the lawsuit.

A general view looking out an airplane window of an airplane wing and clouds over the United States as seen on August 20, 2024. Christopher Sadowski “As part of our regular review of united.com and the United App to enhance the customer experience, in 2025 we added more detail to our seat selection process, so customers can have more information about what to expect when they choose a seat,” a United spokesperson told FOX Business.

The plaintiffs seek to represent a nationwide class of passengers who paid extra for window seats but allegedly received seats without windows.

The case will now move forward in federal court.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider United Airlines (UAL - Free Report) . This company, which is in the Zacks Transportation - Airline industry, shows potential for another earnings beat.

This airline has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.11%.

For the last reported quarter, United came out with earnings of $1.19 per share versus the Zacks Consensus Estimate of $1.08 per share, representing a surprise of 10.19%. For the previous quarter, the company was expected to post earnings of $2.98 per share and it actually produced earnings of $3.1 per share, delivering a surprise of 4.03%.

Price and EPS Surprise

For United, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.

United currently has an Earnings ESP of +1.26%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 15, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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 June 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 July 15, 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 management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis airline is expected to post quarterly earnings of $1.89 per share in its upcoming report, which represents a year-over-year change of -51.2%.

Revenues are expected to be $17.69 billion, up 16.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 17.87% higher 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 +1.26%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that United will most likely 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 $1.08 per share when it actually produced earnings of $1.19, delivering a surprise of +10.19%.

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 appears 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.

An Industry Player's Expected ResultsAnother stock from the Zacks Transportation - Airline industry, United Airlines (UAL - Free Report) , is soon expected to post earnings of $1.89 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -51.2%. Revenues for the quarter are expected to be $17.69 billion, up 16.1% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for United has been revised 17.9% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.26%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that United will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Passengers are paying more to fly, but the carriers selling those tickets are not necessarily the ones collecting the profits. Facing rapidly aging fleets, operators are incurring higher maintenance bills.

That bottleneck has turned the global fleet older. The average commercial aircraft is now about 15 years old, and some long-haul workhorses are far older.

The Cost Curve Behind the TradeAging aircraft are safe when properly maintained, but the bill can rack up quickly. A 10-year-old jet might need $2 million a year, but a 20-year-old version can cost more than $5 million.

Heavy checks at 6- to 10-year intervals can cost $3 million to $6 million in labor and parts. However, that sum can double when accounting for the lost revenue while the aircraft sits idle for a month or two.

The shortage of engines and components has sharpened the economics. EirTrade Aviation purchased two relatively new Airbus A320 aircraft from recently bankrupt Spirit Airlines for disassembly. In today’s market, aircraft can be worth more as parts inventories than as flying machines.

Thus, companies running the MRO (maintenance, repair, and overhaul) sector stand to profit from the situation.

TransDigm and Proprietary Parts Pricing PowerAs fleets age, airlines need to make repeated replacements. That aftermarket demand is less tied to new-aircraft production cycles and more tied to hours flown, failures, inspections and regulatory compliance — a durable setup for high-margin revenue. The stock is roughly flat year to date. However, Benzinga data shows analysts’ average price forecast implies about 16% upside.

TDG Price Action: TransDigm Group shares were trading up 0.03% at $1329.98 during premarket trading on Wednesday, according to Benzinga Pro data.

Heico and The Alternative Supply ChainIts Parts Manufacturer Approval business supplies alternative components that help carriers extend fleet life and manage costs. As backlogs stretch and traditional channels strain, Heico’s value proposition becomes more compelling: keep aircraft airworthy, reduce dependence on scarce OEM parts and avoid groundings. The stock is up 10.64% year-to-date, with analysts pricing a 12% upside.

HEI Price Action: Heico shares were trading down 0.42% at $356.50 during premarket trading on Wednesday.

AAR – The Pure Play MROThe stock is up over 65% year-to-date, and analysts rate it fairly valued. Still, at a $5.43 billion market cap, it is by far the smallest in the group, suggesting potential to grow in this sector.

AIR Price Action: AAR Corp. shares were trading at $138.40 during premarket trading on Wednesday.

Image via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

United Airlines Holdings, Inc. (NASDAQ:UAL) will release its second quarter earnings report after the closing bell on Wednesday, July 15.

Analysts expect the Chicago, Illinois-based company to report quarterly earnings of $1.82 per share, down from $3.87 per share in the year-ago period. The consensus estimate for United Airlines’ quarterly revenue is $17.58 billion. It reported $15.24 billion last year, according to Benzinga Pro.

On April 21, United Airlines Holdings posted better-than-expected first-quarter earnings.

Shares of United Airlines fell 3.2% to close at $128.31 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying UAL stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

HomeIndustriesAirlinesDelta, United shares fly toward fresh records as the airline sector has rallied 20% in JuneJune 30, 2026, 2:53 p.m. ET

U.S. airlines’ stocks are flying high as jet-fuel prices fall and Americans continue to take to the skies, with shares of United Airlines and Delta Air Lines zooming toward fresh records on Tuesday.

“Air-travel demand was strong before the Iran war and has remained strong throughout. The fighting drove up air fares but ended in time for fuel costs to fall,” said David Russell, global head of market strategy at TradeStation.

A commercial plane departs Ronald Reagan National Airport, DCA, as seen from the top of the Washington Monument in Washington, D.C., U.S., May 2, 2026. REUTERS/Ken Cedeno Purchase Licensing Rights, opens new tab

SummaryCompaniesS&P 500 Passenger Airlines index target="_blank">(.SPLRCALI) hits record highQ3 earnings could outperform the Street if fuel prices moderate- UBSJune 24 (Reuters) - U.S. airline ​stocks rose 3% to 7% on Wednesday after crude prices fell to their lowest since before ‌the Iran war, raising hopes that pressure on carriers' earnings could ease, though the benefits are unlikely to be passed on to passengers immediately.

The S&P 500 Passenger Airlines index (.SPLRCALI), opens new tab jumped as much as 5% to an all-time high, and is up nearly ​13% since its close on June 12, after which the U.S. and Iran announced a peace ​agreement. The benchmark S&P 500 has dropped 0.5% in that time.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Brent crude futures fell ⁠below the $74-a-barrel mark on Wednesday amid signs that more oil tankers are set to move out of ​the Strait of Hormuz, a conduit for a fifth of the world's oil supplies.

With crude supplies and prices set ​to ease, airlines stand to save billions of dollars in additional costs as the run-up in jet fuel prices during the Iran war outpaced fare growth. However, an immediate decline in fares for flyers remains unlikely amid tight capacity.

"Sudden movements in fuel ​prices mean that in the near term the airline’s profitability can change (in the opposite direction of the fuel ​price) because they have already sold many tickets assuming the previous fuel cost," Morningstar analyst Nicolas Owens said.

UBS said in a note on Tuesday ‌that it ⁠sees potential for airlines' third-quarter earnings per share to outperform Wall Street expectations, if fuel prices moderate.

Also, while all carriers are expected to benefit from cheaper jet fuel, analysts say those with smaller fleets and a lower share of premium seats and customers are likely to gain more, as their margins are more sensitive to ​fuel-price spikes.

Frontier (ULCC.O), opens new tab and Southwest (LUV.N), opens new tab rose ​3% each, while Delta (DAL.N), opens new tab ⁠and JetBlue (JBLU.O), opens new tab rose 3.7% and 4.5%, respectively. Alaska Air (ALK.N), opens new tab and United (UAL.O), opens new tab were up about 6% each, while American Airlines (AAL.O), opens new tab surged about 7%.

Jet fuel prices, which averaged about $85 ​to $90 a barrel before U.S.-Israeli strikes on Iran in February, had retreated from ​a peak of ⁠over $170 to an average of $119.17 in the week to June 19, according to the International Air Transport Association.

"The drop in oil prices is part of the story but also the ending of the conflict with Iran means a ⁠resumption of ​industrial ventures that were put on hold and a corresponding increase ​in profitable business and holiday travel," said Michael Ashley Schulman, partner at Cerity Partners.

Shares of online travel firms such as Booking Holdings (BKNG.O), opens new tab and ​Expedia (EXPE.O), opens new tab were up between 7% and 10%.

Reporting by Nandan Mandayam and Anshuman Tripathy in Bengaluru; Editing by Diti Pujara

Our Standards: The Thomson Reuters Trust Principles., opens new tab

United Airlines is expected to benefit from falling fuel prices and robust demand, despite recent industry volatility. Industry capacity is expected to be tight in the second half of the year, allowing stronger airfares but raising regulatory scrutiny. UAL faces elevated risks from aggressive growth plans, rising labor costs, high capex, and FAA-imposed hub constraints.