United Airlines (UAL) investor relations material

Executive summary

• Q2 2026 revenue rose 16% year-over-year to $17.7 billion, driven by higher yields, increased passenger numbers, and robust operational performance across all hubs.

• Net income for Q2 2026 was $805 million, down 17.3% from Q2 2025, primarily due to sharply higher fuel costs.

• Customer satisfaction reached record levels, supported by brand loyalty initiatives and investments in Starlink Wi-Fi and new aircraft interiors.

• Passenger revenue increased 16.4% year-over-year, with notable growth across all geographic regions.

• Cargo revenue grew 22.6% year-over-year, reflecting improved freight yields.

Financial highlights

• Q2 2026 diluted EPS was $2.46, adjusted EPS $1.99, with a pre-tax margin of 4.8% despite a significant fuel headwind.

• Operating income was $1.1 billion, down 17.3% from Q2 2025; pre-tax earnings reached $1.0B (5.8% margin), adjusted pre-tax earnings $843M (4.8% margin).

• CASM rose 15.2% year-over-year to 18.99 cents; CASM-ex increased 6.1% due to labor deals and capacity reductions.

• Domestic passenger revenue rose 20.3%, with PRASM up 12.2%; international PRASM up 12%.

• Unrestricted cash, cash equivalents, and short-term investments totaled $16.6 billion as of June 30, 2026; ending available liquidity stood at $19.6B.

Outlook and guidance

• Q3 2026 adjusted EPS expected at $2.50–$3.50, assuming an all-in fuel price of $3.69.

• Full-year 2026 adjusted EPS guidance raised and tightened to $9.00–$11.00, reflecting recent fuel price increases.

• Double-digit pre-tax margins targeted for 2027, with mid-teen margins beyond that.

• RASM/TRASM for Q3 and Q4 expected to exceed Q2, with Q4 yield currently tracking up 19% year-over-year.

• Company expects to recover 80–90% of fuel price increases in Q3 and 100% by Q4.