01—Abstract
Summary
Summary of the 10-Q filed October 21, 2026. Cited figures are marked; the original filing is the authoritative source.
United Airlines Holdings, Inc. (UAL) reported third-quarter 2026 operating revenue of $17.88 billiona, up from $15.23 billion, and net income of $1,029 million, up from $949 million in the year-ago quarter.
Passenger revenue rose $2.4 billionb, or 17.6%, driven by a 16.8% increase in yield and a 2.4% increase in passengers flown. Nine-month net income was $2,533 million, compared with $2,309 million a year earlier, and diluted EPS was $7.74 versus $7.02. Results were pressured by fuel: the average price per gallon was $3.90 in the quarter versus $2.43, and aircraft fuel expense rose $1.8 billion, or 61.6%, to $4.84 billion.
Operating special credits of $215 millionc in the quarter reflected gains on aircraft sale-leasebacks, and the nine-month period included a $740 million one-time flight attendant ratification payment made on September 15, 2026. Liquidity and the balance sheet strengthened. Unrestricted cash, cash equivalents and short-term investments reached $14.7 billion at September 30, 2026, compared with $12.2 billion at December 31, 2025.
Total debt, finance lease, operating lease and other financial liabilities were $34.3 billiond, and the company issued $2.0 billion of senior notes and $4.6 billion of aircraft-secured loans during the nine months while redeeming $2.0 billion of 4.375% Senior Secured Notes. Stockholders' equity increased to $17.75 billion from $15.28 billion. Subsequent to quarter-end, on October 16, 2026, United amended and restated its revolving credit facility, increasing commitments from $3.0 billion to $5.0 billion and extending maturity to October 16, 2031.
Cash from operations was $6.87 billion for the nine months, down from $7.15 billion, primarily reflecting the flight attendant ratification payment and working capital changes, partly offset by higher advance ticket sales. Capital expenditures were $5.15 billion, up from $3.98 billion.
The company made no share repurchases in the third quarter, and $755 million remained available under its repurchase program as of October 15, 2026. Corporate credit ratings were BB+ at S&P and Fitch and Ba1 at Moody's.
02—Key points
Key Highlights
- Third-quarter 2026 operating revenue rose to $17,875 million from $15,225 million, and net income rose to $1,029 million from $949 million.
- Nine-month 2026 net income was $2,533 million versus $2,309 million, and diluted EPS was $7.74 versus $7.02.
- Aircraft fuel expense increased to $4,843 million in the quarter from $2,997 million, with the average fuel price per gallon at $3.90 versus $2.43.
- Third-quarter operating special credits of $215 million were driven by $294 million of aircraft sale-leaseback gains; nine-month results included a $740 million one-time flight attendant ratification payment paid September 15, 2026.
- Unrestricted cash and short-term investments reached $14.7 billion at September 30, 2026, up from $12.2 billion at December 31, 2025.
- Revolving credit facility was increased to $5.0 billion from $3.0 billion and extended to October 16, 2031, after quarter-end.
- Share repurchases were $27 million for the nine months with none in the third quarter; $755 million remained under the program as of October 15, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 21, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $17.88B$15.22B | +17.4% |
| Operating Expenses | $16.43B$13.83B | +18.8% |
| Operating Income | $1.45B$1.40B | +3.7% |
| Net Income | $1.03B$949.00M | +8.4% |
| EPS (Basic) | $3.17$2.93 | +8.2% |
| EPS (Diluted) | $3.14$2.90 | +8.3% |
| Shares Outstanding (Basic) | 324.90M323.70M | +0.4% |
| Shares Outstanding (Diluted) | 327.40M326.90M | +0.2% |
05—Questions
Frequently Asked Questions
What drove the increase in third-quarter revenue and profit?
Passenger revenue increased $2.4 billion, or 17.6%, primarily due to a 16.8% increase in yield and a 2.4% increase in passengers flown. Cargo revenue rose $99 million, or 22.9%, and other operating revenue rose $127 million, or 12.9%, mainly from mileage revenue from non-airline partners. Net income rose to $1,029 million from $949 million.
How much did fuel costs affect results?
Aircraft fuel expense rose $1.8 billion, or 61.6%, to $4,843 million in the third quarter, primarily due to a higher average price per gallon of fuel, which was $3.90 versus $2.43. For the nine months, fuel expense rose $4.5 billion, or 53.3%, to $12,993 million. The filing notes that geopolitical conflicts in the Middle East and other regions contributed to materially higher global fuel prices.
What is the company's liquidity position and how is its debt changing?
Unrestricted cash, cash equivalents and short-term investments were $14.7 billion at September 30, 2026. The company issued $1.0 billion of 5.375% Senior Notes due 2031 and $1.0 billion of 4.875% Senior Notes due 2029, borrowed $4.6 billion under aircraft-secured loans, and redeemed $2.0 billion of 4.375% Senior Secured Notes. Total debt, finance lease, operating lease and other financial liabilities were $34.3 billion, with $2.8 billion due in the next 12 months.
What was the flight attendant contract's effect on the financials?
The flight attendant agreement ratified in May 2026 included a one-time ratification payment totaling $740 million, paid September 15, 2026. The company recorded $182 million of ratification-related expense in the nine months ended September 30, 2026, and the agreement also included pay rate increases that contributed to higher salaries and related costs. Operating cash flow declined in part due to this payment.
Are there any notable events after the quarter ended?
On October 16, 2026, United entered into a Second Amended and Restated Revolving Credit and Guaranty Agreement, increasing commitments from $3.0 billion to $5.0 billion and extending maturity from February 15, 2029 to October 16, 2031. The facility is secured on a senior basis by certain route authorities, slots and terminal space rights, and requires minimum unrestricted liquidity of $2.0 billion and a minimum Collateral Coverage Ratio of 1.6 to 1.0.
06—Continue