United Airlines (UAL) investor relations material

Executive summary

• Achieved record first quarter with strong financial and operational performance, including best on-time departure rate among top eight U.S. carriers and record passenger numbers, despite elevated jet fuel prices and industry disruptions.

• Focused on building a brand-loyal airline, driving customer loyalty through product innovation, reliability, and major customer experience enhancements.

• Navigated weather and geopolitical disruptions while maintaining top-tier reliability and customer satisfaction.

• Announced continued investment in fleet and digital innovation.

Financial highlights

• Q1 operating revenue rose 10.6% year-over-year to $14.6 billion, a record for the first quarter.

• Diluted EPS rose 85% year-over-year to $2.14; adjusted diluted EPS up 31% to $1.19, within guidance.

• Pre-tax margin expanded to 3.4%, with adjusted pre-tax earnings of $0.5 billion.

• Free cash flow for Q1 was $2.9 billion; operating cash flow $4.8 billion.

• Net income was $699 million, up 80.4% year-over-year; adjusted net income $389 million.

Outlook and guidance

• Targeting double-digit pre-tax margins in 2027, with a goal of 100% recovery of increased fuel costs.

• Q2 EPS guidance is $1-$2, with full-year 2026 EPS expected in the $7-$11 range.

• Capacity for Q3 and Q4 expected to be flat to up 2% year-over-year; plans to reduce planned capacity by 5 points for the rest of 2026 due to higher fuel prices.

• Over 250 new aircraft deliveries expected by April 2028; Starlink Wi-Fi fleet-wide by end of 2027.

• Expect to recapture 40%-50% of increased fuel costs in Q2, 70%-80% in Q3, and 85%-100% by Q4.