Key financial results

  • United reported third quarter 2026 revenues of $17.9 billion, an increase of 17.4% year-over-year.United's top line Q3 revenues increased by 17.4% year-over-year to $17.9 billion.
  • The company reported earnings per share of $2.54 for the third quarter.In the third quarter, we delivered earnings per share of $2.54 and a pretax margin of 6.2%.
  • Pretax margin for the quarter was 6.2%.In the third quarter, we delivered earnings per share of $2.54 and a pretax margin of 6.2%.
  • Fuel expenses increased by $1.8 billion year-over-year.Fuel prices accelerated in the quarter and drove a $1.8 billion increase in expense year-over-year.
  • CASM ex increased by 7.8% during the quarter.Our CASM ex was up 7.8% and a higher rate now captures the full run rate of expense from our flight attendant deal.
  • The company ended the quarter with $17.7 billion in liquidity.We ended the quarter with $17.7 billion of liquidity, including our undrawn revolver and paid down approximately $1 billion of debt.

Business segment results

  • Premium: Premium revenue increased 17% on a 2.5% increase in capacity, with PRASM up 14.1%.In Q3, premium revenue, including Economy Plus increased 17% on a 2.5% increase in capacity.
  • Nonpremium: Nonpremium revenue increased 18.4% on a 0.5 point increase in capacity, with RASM up 17.8%.Nonpremium revenue increased 18.4% on a 0.5 point increase in capacity, with RASM up 17.8%.
  • Business: Business revenue increased 22% with yields up 15%.Business revenue increased by 22% in the quarter, with yields up 15%.
  • Business: Contracted business revenues increased by 26%.Contracted business revenues increased by 26%.
  • Leisure: Leisure revenues grew 16% year-over-year.Leisure revenues were up 16%, with stronger year-over-year yield gains than business traffic.
  • Cargo: Cargo revenues increased 23% year-over-year, primarily driven by yield improvements.
  • Loyalty: Loyalty revenue increased 17%, with Chase remuneration up 15% and co-brand portfolio spend up 13%.Loyalty revenue had another strong quarter, up 17%.

Capital allocation

  • The company paid down approximately $1 billion of debt during the quarter.We ended the quarter with $17.7 billion of liquidity, including our undrawn revolver and paid down approximately $1 billion of debt.
  • United raised $900 million of new debt priced at a fixed rate in the low 5% range.We raised $900 million of new debt that was priced at a fixed rate equivalent in the low 5% range.
  • The revolving credit facility was upsized from $3 billion to $5 billion and extended to 2031.Additionally, we upsized our revolving credit facility last week from $3 billion of unfunded liquidity to $5 billion.
  • Management targets $18 billion of liquidity by year-end.We intend to reduce gross debt by the same amount as we target $18 billion of liquidity at year-end.
  • Management expects fuel prices to remain elevated throughout 2027.Instead, we're planning for and actually expect fuel to remain elevated for all of 2027.
  • Industry capacity is expected to accelerate.It also appears that industry capacity will accelerate.
  • Airlines are increasingly trading load factor for yield to pass through higher fuel costs.So it's possible that airlines will continue to focus on yield at the expense of load factor and that alone could get us to double-digit margins next year.
  • Management anticipates future industry consolidation and structural changes.But there's other airlines that are next up on the firing line, and I think changes are covering.

Competitive landscape

  • Starlink is a key differentiator, with 50% of departures currently equipped.Today, about half of United departures are on Sterling equipped aircraft and we offer more Starlink flights than the entire U.S. airline industry combined.
  • United captured 50% of Chicago-based passenger revenue for the first time in Q2 2026.United had a key milestone in Q2 of 2026, capturing 50% of Chicago-based passengers revenue for the first time.
  • The company is gaining market share in all hub cities.Beyond Chicago, we also saw share gains in all remaining United hub cities with the latest data released by the DOT.
  • Management claims a massive technology lead over competitors.So our technology lead is massive versus -- I don't know who's the second best airline in the world, but it is massive versus all of them.

Macroeconomic environment

  • The company is facing inflationary pressures, including a 60% increase in airport costs since the pandemic.We're facing airport costs that since the pandemic have gone up by 60%.
  • Jet fuel prices spiked late in the third quarter, impacting recapture rates.This is lower than the 100% we were anticipating due to the rapid spike in jet fuel prices late in the third quarter.

Growth opportunities and strategies

  • United expects to have Starlink installed on all jets, both mainline and Express, by the end of 2027.By the end of '27, we expect to finish installing StarLink on all our jets, both mainline and Express.
  • The company is modernizing its fleet with new aircraft deliveries.So we have some pent-up demand in our fleet with older aircraft that are maintenance inefficient, fuel inefficient.
  • United is on track to add 1 million new co-brand accounts in 2026.
  • Management is focused on deseasonalizing the business to improve Q3 performance.I've talked about United's efforts in the past to deseasonalize our business by improving the relative RASM performance of Q3.

Financial guidance and outlook

  • Fourth quarter earnings per share are expected to be between $0.50 and $1.50.
  • The company assumes an all-in fuel price of approximately $4.80 per gallon for Q4.
  • CASM ex is expected to decelerate in Q4 and step materially lower in 2027.We expect Q3 to be the high watermark for CASM ex and expense growth will step down in the fourth quarter and then step materially lower in 2027.
  • Management aims to recapture 100% of fuel price increases in 2027.And we aim to recapture 100% of the price of oil in 2027.

Operational performance

  • United ranked second in on-time departures for the third quarter.United ranked second and on-time departures for the third quarter with United being first among the top 7 U.S. carriers in July.
  • The company achieved its best third quarter post-pandemic seat cancellation rate.
  • United saw its highest quarterly NPS score since 2022.In the third quarter, we saw our highest quarterly NPS score since 2022 amidst record passenger growth.

Q3 2026 results

MetricResultChange
Revenue$17.9 billionup 17.4% year-over-year
Earnings per share$2.54within guidance
Pretax margin6.2%Not stated
CASM exup 7.8%Not stated
Loyalty revenueup 17%Not stated

How management sounded

Balanced (+35 on our -100 to +100 scale). Management expressed strong conviction in their long-term strategy and competitive advantages, particularly Starlink, while maintaining a realistic view on fuel and capacity challenges. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.

Read the analyst Q&A summary and guidance and outlook for this call.

What to watch before the next call

  • The impact of high fuel prices on industry capacity and potential supply rationalization.
  • The progress of Starlink installations and its actual impact on customer acquisition and retention.
  • The outcome of the sunset of the existing Chase co-brand agreement and the negotiation of a new contract.

Earlier calls

  • Q2 2026 (Jul 16, 2026), tone Balanced: United Airlines reported Q2 earnings of $1.99 per share on $17.7 billion in revenue. Management remains confident in its long-term strategy and expects to navigate fuel volatility through structural industry changes and brand loyalty.