United Airlines (UAL) investor relations material

Executive summary

• Q3 operating revenue reached a record $17.875B, up 17.4% YoY, with capacity growth of 1.3%; 49.5M revenue customers traveled during the quarter.

• Higher yields and passenger volumes lifted revenue, while sharply higher fuel and labor costs limited operating-income growth.

• Product, service and technology investments are intended to support customer loyalty and durable earnings; double-digit pre-tax margins remain a goal for 2027.

Financial highlights

• Q3 net income was $1.029B, up 8.5%; adjusted net income was $833M, down 8.4%. Diluted EPS was $3.14, up 8.3%; adjusted diluted EPS was $2.54, down 8.6%.

• Operating income increased 3.6% to $1.446B; adjusted operating income declined 6.9% to $1.231B.

• Passenger revenue rose 17.6% to $16.241B; cargo revenue increased 22.9% to $529M and other operating revenue rose 12.9% to $1.106B.

• Operating expenses increased 18.8% to $16.429B; fuel expense rose 61.6% to $4.843B, up $1.8B YoY.

• 9M revenue increased 14.8% to $50.156B, operating income rose 6.4% to $3.539B and net income increased 9.7% to $2.533B.

Outlook and guidance

• Q4 operating revenue is expected to rise more than 20% YoY and set another record; EPS guidance is $0.50–$1.50, assuming all-in fuel of $4.80/gal.

• Q4 CASM-ex is expected to decelerate and TRASM to accelerate versus Q3; fuel recapture is expected to resemble Q3, with a target of full recapture over time.

• Double-digit pre-tax margins in 2027 are a goal; elevated fuel and industry capacity are assumed, and Starlink alone may not be sufficient to reach it.

• CASM-ex target for 2027 and beyond is 2%–3%; management cited inflationary pressures and prioritizing margins over loss-making flights.

• Starlink is expected on 61% of the fleet by end-2026, 87% of departures by June 1, 2027, and the full fleet by year-end 2027; summer 2027 plans include 10 new international destinations, subject to approval.