01—Abstract
Summary
Summary of the 8-K filed April 21, 2026. Cited figures are marked; the original filing is the authoritative source.
United Airlines Holdings, Inc. (UAL) reported first-quarter 2026 results on April 21, 2026, with diluted earnings per share of $2.14a, up 85% year-over-year, and adjusted diluted earnings per share of $1.19, up 31% year-over-year and within its initial guidance range of $1.00 to $1.50.
Total operating revenue rose 10.6% to $14.6 billionb, with TRASM up 6.9%. Pre-tax earnings were $0.9 billion (6.0% pre-tax margin), while adjusted pre-tax earnings were $0.5 billion (3.4% adjusted pre-tax margin). Aircraft fuel expense increased by $340 million versus the first quarter of 2025, with the average fuel price per gallon at $2.78, up 9.9%.
The company generated $4.8 billionc of operating cash flow and $2.9 billion of free cash flow, and paid down $3.1 billion of debt during the quarter. The company's second-quarter and full-year 2026 outlook, set out in the Investor Update (Exhibit 99.2), calls for estimated adjusted diluted earnings per share of $1.00 to $2.00 for 2Q 2026 and $7.00 to $11.00 for FY 2026, based on an estimated average fuel price of approximately $4.30 per gallon in the second quarter. United expects to reduce planned capacity by 5 points for the rest of the year, with third- and fourth-quarter 2026 capacity flat to up approximately 2% year-over-year.
Management expects revenue to recover 40% to 50% of fuel price increases in the second quarter, 70% to 80% in the third quarter, and 85% to 100% in the fourth quarter. Balance sheet metrics improved, with ending available liquidity of $17.2 billiond, total debt and finance lease obligations of $24.2 billion, and trailing twelve-month net leverage of 2.0x. The company also returned to the unsecured bond market, raising $2 billion in two bond issuances, and reached a tentative agreement with the Association of Flight Attendants.
02—Key points
Key Highlights
- Q1 2026 diluted EPS of $2.14 (up 85% year-over-year) and adjusted diluted EPS of $1.19 (up 31% year-over-year), within initial guidance of $1.00 to $1.50
- Total operating revenue of $14.6 billion, up 10.6% year-over-year; TRASM up 6.9%; capacity up 3.4%
- Aircraft fuel expense rose $340 million year-over-year; average fuel price of $2.78 per gallon, up 9.9%
- 2Q 2026 adjusted diluted EPS guidance of $1.00 to $2.00 and FY 2026 guidance of $7.00 to $11.00, with an estimated 2Q 2026 fuel price of approximately $4.30 per gallon
- Capacity reduction of 5 points versus original plan for the rest of 2026; Q3 and Q4 capacity guided flat to up approximately 2% year-over-year
- Generated $4.8 billion of operating cash flow and $2.9 billion of free cash flow; repaid $3.1 billion of debt; trailing twelve-month net leverage of 2.0x
- Raised $2 billion across two unsecured bond issuances, the company's first unsecured market return since 2019; ending available liquidity of $17.2 billion
03—Questions
Frequently Asked Questions
How did United perform financially in the first quarter of 2026?
United reported diluted EPS of $2.14 and adjusted diluted EPS of $1.19, with pre-tax earnings of $0.9 billion (6.0% pre-tax margin) and adjusted pre-tax earnings of $0.5 billion (3.4% adjusted pre-tax margin). Total operating revenue rose 10.6% to $14.6 billion, while fuel expense increased by $340 million year-over-year. Results included net gains on sale-leaseback transactions of $444 million.
What is United's guidance for the second quarter and full year 2026?
The Investor Update estimates adjusted diluted EPS of $1.00 to $2.00 for 2Q 2026 and $7.00 to $11.00 for FY 2026, assuming an average fuel price of approximately $4.30 per gallon in the second quarter. The company expects to land in the upper half of the ranges if fuel prices trend downward and in the lower half if fuel re-escalates. Adjusted total capital expenditures for FY 2026 are estimated at less than $8 billion.
How is United responding to higher fuel prices?
United has begun adjusting its schedule, targeting a 5-point capacity reduction versus its original plan for the rest of 2026, with third- and fourth-quarter capacity flat to up approximately 2% year-over-year. The Investor Update assumes revenue will recover 40% to 50% of fuel price increases in the second quarter, 70% to 80% in the third quarter, and 85% to 100% in the fourth quarter.
What is United's balance sheet and liquidity position?
At quarter end, United had ending available liquidity of $17.2 billion and total debt, finance lease obligations and other financial liabilities of $24.2 billion. Trailing twelve-month net leverage was 2.0x. The company generated $2.9 billion of free cash flow and paid down $3.1 billion of debt during the quarter, and repurchased approximately $27 million of shares.
What does the Investor Update say about profit sharing for the second quarter?
Based on current labor agreements, United expects to accrue between $50 million and $95 million in profit sharing in the second quarter of 2026, using a methodology tied to adjusted pre-tax earnings and margins. Share-based compensation expense for the profit sharing calculation is estimated at approximately $42 million for the second quarter.
04—Continue