United Airlines (UAL) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter operating revenue of $14.6 billion, up 10.6% year-over-year, with net income of $699 million and diluted EPS of $2.14, up 85% year-over-year.

• Adjusted diluted EPS was $1.19, up 31% year-over-year and within guidance; pre-tax margin rose to 6.0% (up 2.3 pts), adjusted pre-tax margin at 3.4% (up 0.4 pts).

• Operating income grew 64.2% to $997 million, reflecting improved margins and cost management.

• Carried the most passengers in a first quarter in company history and achieved the best on-time departure rate among the eight largest U.S. carriers.

• Introduced new customer experience initiatives, including United Relax Row, expanded Starlink Wi-Fi, and enhanced MileagePlus benefits.

Financial highlights

• Total operating revenue: $14.6B (+10.6% YoY); TRASM up 6.9% YoY; CASM up 4.4% YoY; CASM-ex up 5.9% YoY.

• Net income: $699M; adjusted net income: $389M.

• Operating cash flow: $4.8B; free cash flow: $2.9B.

• Paid down $3.1B in debt and raised $2B in unsecured bonds.

• Passenger revenue increased 11.0% to $13.2 billion, with capacity up 3.4% and yield up 4.2%.

Outlook and guidance

• Q2 adjusted diluted EPS guidance: $1.00–$2.00; FY 2026: $7.00–$11.00.

• Capacity for Q3 and Q4 expected to be flat to up 2% YoY after a 5-point reduction from original plan due to higher fuel prices.

• Revenue expected to recover 40–50% of fuel price increases in Q2, 70–80% in Q3, and 85–100% in Q4.

• Management expects sufficient liquidity for the next 12 months, supported by $14.2 billion in unrestricted cash and investments.

• Over 250 new aircraft deliveries expected by April 2028.