United Airlines Holdings, Inc. (UAL.US) Reports Record Third-Quarter Revenue, Up Over 17% Year-over-Year to Nearly $17.9 Billion

United Airlines Holdings, Inc. (UAL.US) Reports Record Third-Quarter Revenue, Up Over 17% Year-over-Year to Nearly $17.9 Billion United Airlines Holdings, Inc. (UAL.US) released its third-quarter 2026 financial results after the U.S. market close on Tuesday. Benefiting from strong passenger demand, higher fares, and growth in premium cabin business, the company's quarterly revenue rose 17.4% year-over-year, setting an all-time high. Although a sharp surge in fuel costs weighed on profitability, United Airlines Holdings, Inc. still expects fourth-quarter revenue growth to accelerate further, with a year-over-year increase potentially exceeding 20% and setting another all-time record. The results showed that United Airlines Holdings, Inc.'s third-quarter total operating revenue reached $17.875 billion, up 17.4% from $15.225 billion a year earlier. Of this, passenger revenue reached $16.241 billion, up 17.6% year-over-year; cargo revenue reached $529 million, up 22.9% year-over-year; and other operating revenue reached $1.106 billion, up 12.9% year-over-year. On the profitability side, United Airlines Holdings, Inc.'s third-quarter net income reached $1.029 billion, up 8.5% from $949 million a year earlier; diluted earnings per share were $3.14, higher than $2.90 a year earlier. However, excluding special items, the company's third-quarter adjusted net income was $833 million, down 8.4% from $909 million a year earlier; adjusted earnings per share were $2.54, down 8.6% from $2.78 a year earlier, but still within the guidance range previously provided by the company. United Airlines Holdings, Inc.'s third-quarter pre-tax income was $1.311 billion, up 4.5% year-over-year, with a pre-tax margin of 7.3%; adjusted pre-tax income was $1.109 billion, down 8.7% year-over-year, with an adjusted pre-tax margin of 6.2%, lower than 8.0% a year earlier. In terms of operating profit, the company's third-quarter operating profit was $1.446 billion, up 3.6% year-over-year, with the operating margin falling to 8.1% from 9.2% a year earlier. Adjusted operating profit was $1.231 billion, down 6.9% year-over-year, with the adjusted operating margin falling to 6.9% from 8.7%. Fuel Costs Surge More Than 60%; Operating Expenses Grow Faster Than Revenue Despite record revenue, rising fuel prices still put significant pressure on United Airlines Holdings, Inc.'s third-quarter profitability. The results showed that the company's third-quarter operating expenses reached $16.429 billion, up 18.8% from $13.830 billion a year earlier, outpacing the 17.4% revenue growth in the same period. Of this, aviation fuel expenses reached $4.843 billion, up sharply by 61.6% from $2.997 billion a year earlier, an increase of about $1.846 billion. In the third quarter, the company's average aviation fuel price reached $3.90 per gallon, up 60.3% from $2.43 a year earlier, while fuel consumption rose only 0.8% year-over-year. Meanwhile, United Airlines Holdings, Inc.'s third-quarter cost per available seat mile (CASM) rose 17.3% year-over-year, and adjusted unit cost (CASM-ex), excluding fuel, profit sharing, special items, and third-party business expenses, rose 7.8% year-over-year. The company said that continued volatility in aviation fuel prices has led to a notable increase in cost pressure. However, strong revenue growth and demand for premium products helped the company partially offset the impact of higher fuel costs. United Airlines Holdings, Inc. Chief Executive Officer Scott Kirby said that the company's employees successfully navigated a changing operating environment, and the third-quarter results also proved that focusing on building an airline with brand loyalty can enhance business resilience. Premium Cabin Revenue Up 17%; Business Travel Revenue Jumps 26% In terms of business performance, all major revenue sources of United Airlines Holdings, Inc. grew in the third quarter, with business travel, premium cabins, and cargo performing particularly well. The company said that third-quarter premium cabin revenue rose 17% year-over-year, basic economy revenue rose 16%, loyalty program-related revenue rose 17%, and cargo revenue rose 23%. At the same time, corporate contract business travel revenue surged 26% year-over-year, reflecting still-strong demand for close-in business travel across industries. Standard economy revenue grew for the third consecutive quarter, with unit revenue up 17% year-over-year. In the third quarter, United Airlines Holdings, Inc.'s total unit revenue, or total revenue per available seat mile, rose 15.9% year-over-year, marking the best quarterly unit revenue growth since the pandemic. Passenger unit revenue rose 16.1% year-over-year, and average passenger yield rose 16.8% year-over-year. It is worth noting that the company's third-quarter capacity grew only 1.3% year-over-year, but passenger revenue rose 17.6%, indicating that unit capacity revenue growth was an important factor driving the overall improvement in performance. By region, United Airlines Holdings, Inc.'s third-quarter U.S. domestic passenger revenue reached $9.708 billion, up 19.9% year-over-year, with domestic passenger unit revenue up 14.5% year-over-year. International passenger revenue reached $6.533 billion, up 14.3% year-over-year, with international route unit revenue up 17.4% year-over-year. The Latin America market was particularly strong, with passenger revenue reaching $1.339 billion, up 24.2% year-over-year, and passenger unit revenue surging 30.5% year-over-year. Pacific route passenger revenue rose 16.5% year-over-year, and Europe route passenger revenue rose 13.3% year-over-year. By contrast, passenger revenue on Middle East, India, and Africa routes fell 17.3% year-over-year, mainly accompanied by a 36.5% year-over-year reduction in capacity in the region. Record Third-Quarter Passenger Traffic; Starlink Wi-Fi Covers More Than 640 Aircraft Operationally, United Airlines Holdings, Inc. carried about 49.53 million passengers in the third quarter, up 2.4% year-over-year, setting a record for the company's third-quarter passenger traffic. The company carried an average of about 538,000 passengers per day in the third quarter, with July passenger traffic reaching 18.4 million, a record high for a single month in the company's history. United Airlines Holdings, Inc.'s third-quarter load factor was 83.9%, down 0.5 percentage points from 84.4% a year earlier. Despite continued growth in passenger traffic, the company maintained relatively good operational reliability, with the lowest seat cancellation rate among the three major U.S. airlines in the third quarter. Meanwhile, United Airlines Holdings, Inc. continued to upgrade its in-flight internet service, using SpaceX's (SPCX.US) Starlink satellite internet as an important differentiated product to attract passengers. As of the third quarter, the company had installed Starlink equipment on more than 640 aircraft, and about half of United Airlines Holdings, Inc.'s flights already offered the service, including regional flights. The company currently installs Starlink equipment on an average of about three aircraft per day and expects that by the end of 2026, the proportion of flights covered by Starlink service will reach 61%, rising to 87% by June 1, 2027, and ultimately achieving full fleet coverage by the end of 2027. In September alone, more than 5.4 million United Airlines Holdings, Inc. passengers experienced Starlink service. United Airlines Holdings, Inc. said that aircraft equipped with Starlink received customer service ratings nearly twice those of aircraft with other Wi-Fi services, further improving passenger satisfaction. Kirby said that Starlink is helping United Airlines Holdings, Inc. attract new long-term loyal customers, while the company's leading app, service, onboard products, and technological capabilities help improve customer retention. International Route Expansion Continues; Plans to Add 10 International Destinations in 2027 In terms of route network, United Airlines Holdings, Inc. continued to expand its international market presence. The company announced that in summer 2027 it will launch the largest international route network expansion in its history, adding 10 international destinations, including Catania, Italy; Ibiza, Spain; Ljubljana, Slovenia; Luxembourg; Marseille, France; Okinawa, Japan; Olbia, Italy; Terceira Island, Portugal; Toulouse, France; and Valencia, Spain. The above new routes remain subject to relevant government approval. In addition, the company plans to add international service in summer 2027 from Los Angeles to Osaka, Washington Dulles to Milan, Denver to Paris, and San Francisco to Tel Aviv. United Airlines Holdings, Inc. operated the largest domestic flight schedule in its history in the third quarter, covering 241 airports across the United States and Canada. In terms of fleet upgrades, the company's newly introduced Airbus A321XLR aircraft entered U.S. domestic service for the first time in September. At the same time, United Airlines Holdings, Inc. continued to expand the operating scope of its premium-configured Boeing Company 787-9 aircraft, extending related service from the previous Singapore and London routes to San Francisco-Zurich and Seoul routes. Third-Quarter Free Cash Flow Negative $1.8 Billion; Maintains Ample Liquidity In terms of cash flow, United Airlines Holdings, Inc.'s third-quarter cash flow from operating activities was $465 million, lower than $1.218 billion a year earlier. Affected by factors such as increased investment spending, the company's third-quarter free cash flow was negative $1.843 billion, compared with negative $153 million a year earlier. In the third quarter, the company's adjusted capital expenditures reached $2.193 billion, higher than $1.881 billion a year earlier. As of the end of September, United Airlines Holdings, Inc. had $17.7 billion in available liquidity, including cash, short-term investments, and undrawn credit facilities. During the same period, the company's total debt, finance lease obligations, and other financial liabilities were approximately $26.4 billion, with a net leverage ratio of 2.4 times over the past 12 months. In addition, on October 16, United Airlines Holdings, Inc. expanded its revolving credit facility, increasing the relevant credit line to $5 billion from $3 billion previously. The company said the move will further enhance balance sheet flexibility and support its long-term goal of achieving an investment-grade credit rating. Expects Fourth-Quarter Revenue to Grow More Than 20% Year-over-Year, Setting Another All-Time High Looking ahead to the fourth quarter, United Airlines Holdings, Inc. expects revenue growth to accelerate further, with total operating revenue expected to increase more than 20% year-over-year, higher than the 17.4% growth in the third quarter, and is expected to set another all-time quarterly revenue record. This expectation reflects the company's confidence in continued improvement in air travel demand, premium cabin business, and customer loyalty. However, against the backdrop of volatile fuel prices and persistently rising operating costs, United Airlines Holdings, Inc.'s profitability still faces certain pressure. The company said it will continue to enhance its competitive advantage and drive long-term revenue growth by expanding premium product offerings, improving digital services, advancing Starlink deployment, and optimizing its global route network. United Airlines Holdings, Inc. will hold its quarterly earnings conference call on October 21 to further discuss its financial and operational outlook for the fourth quarter of 2026 and beyond.