01—Abstract
Summary
Summary of the 10-Q filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
United Airlines Holdings, Inc. (UAL) reported first-quarter 2026 net income of $699 milliona, or $2.14 per diluted share, compared with $387 million, or $1.16 per diluted share, in the first quarter of 2025.
Total operating revenue rose 10.6% to $14.61 billionb, led by passenger revenue of $13.17 billion, up 11.0%. Operating income increased to $997 million from $607 million, and the filing attributes the gain to higher flight activity and yield improvement, with passenger revenue growth driven by a 3.4% increase in capacity, a 4.2% increase in yield and a 4.1% increase in passengers flown. Total operating expense rose 8.0% to $13.61 billion, with aircraft fuel up 12.6% to $3.04 billion on a higher average price per gallon, which the filing says rose to $2.78 from $2.53.
The company also booked $389 millionc of net special charges credits, primarily from $444 million of aircraft sale-leaseback gains. Management cites geopolitical conflict in the Middle East as a driver of materially higher global fuel prices, and says it reduced lower-margin capacity and adjusted fares and fees in response. Liquidity was $14.2 billion of unrestricted cash, cash equivalents and short-term investments, up from $12.2 billion at December 31, 2025.
During the quarter the company issued $1.0 billiond of 5.375% Senior Notes due 2031 and $1.0 billion of 4.875% Senior Notes due 2029, and it prepaid the $2.0 billion 4.375% Senior Secured Notes due 2026. Long-term debt, finance leases and other financial liabilities totaled $21.94 billion noncurrent at March 31, 2026, and the company reported $3.0 billion of undrawn revolving credit capacity.
The filing also notes that the Association of Flight Attendants reached a new tentative agreement in March 2026, with ratification voting expected to close May 12, 2026. Operating cash flow was $4.80 billion, up from $3.71 billion, and the company repurchased about $27 million of stock during the quarter, with $755 million remaining under its authorization.
02—Key points
Key Highlights
- Net income of $699 million ($2.14 diluted EPS) versus $387 million ($1.16 diluted EPS) in Q1 2025.
- Total operating revenue of $14.61 billion, up 10.6%; passenger revenue of $13.17 billion, up 11.0%, on a 3.4% capacity increase and 4.2% yield increase.
- Operating income of $997 million versus $607 million a year earlier, with aircraft fuel expense up 12.6% to $3.04 billion amid materially higher global fuel prices tied to Middle East disruptions.
- Net special credits of $389 million, primarily from $444 million of aircraft sale-leaseback gains.
- Operating cash flow of $4.80 billion versus $3.71 billion; unrestricted liquidity of $14.2 billion at March 31, 2026, up from $12.2 billion at year-end 2025.
- Issued $2.0 billion of new senior notes (5.375% due 2031 and 4.875% due 2029) and prepaid the $2.0 billion 4.375% Senior Secured Notes due 2026; $3.0 billion revolver undrawn.
- Employee headcount of 115,600 at March 31, 2026, up from 109,200; a new tentative agreement with flight attendants (AFA) includes a one-time ratification payment, with the vote expected to close May 12, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 22, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $14.61B$13.21B | +10.6% |
| Operating Expenses | $13.61B$12.61B | +8.0% |
| Operating Income | $997.00M$607.00M | +64.3% |
| Net Income | $699.00M$387.00M | +80.6% |
| EPS (Basic) | $2.16$1.18 | +83.1% |
| EPS (Diluted) | $2.14$1.16 | +84.5% |
| Shares Outstanding (Basic) | 323.90M327.70M | −1.2% |
| Shares Outstanding (Diluted) | 326.80M333.00M | −1.9% |
05—Questions
Frequently Asked Questions
How did United's profitability change in the first quarter of 2026?
Net income rose to $699 million, or $2.14 per diluted share, from $387 million, or $1.16 per diluted share, in the first quarter of 2025. Operating income increased to $997 million from $607 million, driven by a 10.6% rise in total operating revenue that outpaced an 8.0% increase in operating expense.
What drove the increase in passenger revenue?
Passenger revenue increased $1.3 billion, or 11.0%, primarily due to a 3.4% increase in capacity, a 4.2% increase in yield and a 4.1% increase in the number of passengers flown.
What pressures on costs did the company disclose?
Aircraft fuel expense rose $339 million, or 12.6%, on a higher average price per gallon, which the filing states was $2.78 versus $2.53, and higher consumption. The filing says geopolitical tensions in the Middle East contributed to materially higher global fuel prices that could continue, and that the company responded by reducing lower-margin capacity and adjusting fares and fees.
How is the company's liquidity and debt position?
Unrestricted cash, cash equivalents and short-term investments were $14.2 billion at March 31, 2026, up from $12.2 billion at December 31, 2025. The company issued $1.0 billion of 5.375% Senior Notes due 2031 and $1.0 billion of 4.875% Senior Notes due 2029, and prepaid the $2.0 billion 4.375% Senior Secured Notes due 2026. The company had approximately $31.0 billion of debt, finance lease, operating lease and other financial liabilities, including $3.0 billion due in the next 12 months, and a $3.0 billion revolving credit facility that was undrawn.
What are the key labor and capital commitments disclosed?
A new tentative agreement with the Association of Flight Attendants includes pay rate increases over its five-year term and a one-time ratification payment; ratification voting is expected to close May 12, 2026. The company has firm aircraft purchase commitments from Boeing and Airbus, with 146 787s, 78 737 MAX 9s, 167 737 MAX 10s, 114 A321neos, 50 A321XLRs and 45 A350s listed, scheduled for delivery through 2034.
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