01—Abstract
Summary
Summary of the 10-Q filed July 16, 2026. Cited figures are marked; the original filing is the authoritative source.
United Airlines Holdings, Inc. (UAL) reported second-quarter 2026 operating revenue of $17,672 milliona, up 16.0% from $15,236 million a year earlier.
Passenger revenue rose 16.4% to $16,100 millionb, driven by a 12.1% increase in yield and a 5.4% increase in passengers flown. Operating expense grew 19.2% to $16,576 million, led by aircraft fuel, which rose 84.1% to $5,110 million on an average fuel price of $4.19 per gallon, up from $2.34. Operating income fell 17.3% to $1,096 million, and net income fell 17.3% to $805 million, or $2.46 per diluted share, compared with $2.97 a year earlier.
The filing attributes the higher fuel costs to geopolitical conflicts in the Middle East, and says the company reduced capacity and adjusted fares and fees in response. For the first six months of 2026, net income was $1,504 millionc, up 10.5% from $1,361 million, and diluted EPS was $4.60 versus $4.12. Operating income rose 8.3% to $2,093 million.
Special charges were a net credit of $534 milliond for the six months, reflecting $718 million of net gains on sale of assets, primarily aircraft sale-leaseback transactions, partly offset by $184 million of labor contract ratification bonuses. Liquidity improved over the period. Unrestricted cash, cash equivalents and short-term investments reached $16.6 billion at June 30, 2026, versus $12.2 billion at December 31, 2025.
Total debt, finance lease, operating lease and other financial liabilities were $33.7 billion. During the six months, the company issued $1.0 billion of 5.375% Senior Notes due 2031, $1.0 billion of 4.875% Senior Notes due 2029 and $3.9 billion of aircraft financings, and it redeemed $2.0 billion of 4.375% Senior Secured Notes due 2026. A $3.0 billion revolving credit facility remained undrawn.
02—Key points
Key Highlights
- Q2 2026 operating revenue rose 16.0% to $17,672 million, with passenger revenue up 16.4% on a 12.1% yield increase.
- Aircraft fuel expense rose 84.1% to $5,110 million in Q2, as the average fuel price per gallon increased 79.4% to $4.19.
- Q2 net income declined 17.3% to $805 million, and diluted EPS was $2.46 versus $2.97; six-month diluted EPS was $4.60 versus $4.12.
- Six-month operating income increased 8.3% to $2,093 million, supported by $718 million of net gains on sale of assets, primarily aircraft sale-leaseback gains.
- Unrestricted cash, cash equivalents and short-term investments totaled $16.6 billion at June 30, 2026, up from $12.2 billion at December 31, 2025.
- The company issued $1.0 billion of 5.375% notes due 2031, $1.0 billion of 4.875% notes due 2029 and $3.9 billion of aircraft financings, and redeemed $2.0 billion of 4.375% secured notes.
- A flight attendant agreement ratified in May 2026 led to a $742 million total liability for a one-time ratification payment due by September 15, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 16, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $17.67B$15.24B | +16.0% |
| Operating Expenses | $16.58B$13.91B | +19.2% |
| Operating Income | $1.10B$1.32B | −17.3% |
| Net Income | $805.00M$973.00M | −17.3% |
| EPS (Basic) | $2.48$3.00 | −17.3% |
| EPS (Diluted) | $2.46$2.97 | −17.2% |
| Shares Outstanding (Basic) | 324.60M324.60M | 0.0% |
| Shares Outstanding (Diluted) | 326.60M327.20M | −0.2% |
05—Questions
Frequently Asked Questions
What drove the decline in second-quarter profitability?
Operating expense rose 19.2%, led by aircraft fuel, which increased $2.3 billion or 84.1% on a higher average price per gallon and increased consumption. Distribution expenses rose 32.3%, and salaries and related costs rose 6.2%. Revenue growth of 16.0% did not fully offset these increases, and operating income fell 17.3% to $1,096 million.
How did the company's liquidity and debt position change in the first half of 2026?
Unrestricted cash, cash equivalents and short-term investments rose to $16.6 billion from $12.2 billion at year-end 2025. The company issued $1.0 billion of 5.375% Senior Notes due 2031, $1.0 billion of 4.875% Senior Notes due 2029 and $3.9 billion of aircraft financings, and made $4.5 billion of debt, finance lease and other financial liability payments, including the redemption of $2.0 billion of 4.375% Senior Secured Notes. The $3.0 billion revolving credit facility was undrawn, and the company stated it was in compliance with its debt covenants.
What are the company's remaining labor and special charge items?
In the second quarter, the company recorded $184 million of labor contract ratification bonuses for its flight attendants represented by the AFA and for other groups represented by the IAM. The total liability for the AFA one-time ratification payment was $742 million at June 30, 2026, payable no later than September 15, 2026. Net gains on sale of assets and other special charges were $329 million in the second quarter, primarily from $351 million of aircraft sale-leaseback gains.
How much capital is available for share repurchases?
The company repurchased 0.3 million shares for $27 million in the first six months of 2026 and made no repurchases in the second quarter. As of July 9, 2026, $755 million remained available under the $1.5 billion share repurchase program authorized in October 2024.
What are the company's expected aircraft deliveries and capital commitments?
As of June 30, 2026, United held firm commitments for 146 Boeing 787s, 63 737 MAX 9s, 167 737 MAX 10s, 111 A321neos, 49 A321XLRs and 45 A350s, with deliveries scheduled through 2034. Future regional capacity purchase agreement payments were estimated at $19.0 billion in total, including $1.4 billion for the last six months of 2026.
06—Continue