Q3 FY2026
Filed Oct 20, 2026United Delivers Record 17% Revenue Growth in Q3, and Expects Record Q4 Revenue Growth, Underpinned by Accelerating Customer Investments
Record revenue and broad-based unit-revenue growth outpaced modest capacity growth, but a 61.6% increase in aircraft fuel expense drove total operating expense growth above revenue growth and reduced adjusted operating, pre-tax and net income year over year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 total operating revenueGAAP | $17.88B | – | 17.4% |
| Q3 passenger revenueGAAP | $16.24B | – | 17.6% |
| Q3 cargo revenueGAAP | $529M | – | 22.9% |
| Q3 other operating revenueGAAP | $1.11B | – | 12.9% |
| Q3 total operating expenseGAAP | $16.43B | – | 18.8% |
| Q3 aircraft fuel expenseGAAP | $4.84B | – | 61.6% |
| Q3 adjusted operating expensesnon-GAAP | $11.59B | – | 9.1% |
| Q3 operating incomeGAAP | $1.45B | – | 3.6% |
| Q3 adjusted operating incomenon-GAAP | $1.23B | – | (6.9%) |
| Q3 operating marginGAAP | 8.1 % | – | (1.1) pts. |
| Q3 adjusted operating marginnon-GAAP | 6.9 % | – | (1.8) pts. |
| Q3 pre-tax incomeGAAP | $1.31B | – | 4.5% |
| Q3 adjusted pre-tax incomenon-GAAP | $1.11B | – | (8.7%) |
| Q3 pre-tax marginGAAP | 7.3 % | – | (0.9) pts. |
| Q3 adjusted pre-tax marginnon-GAAP | 6.2 % | – | (1.8) pts. |
| Q3 net incomeGAAP | $1.03B | – | 8.5% |
| Q3 adjusted net incomenon-GAAP | $833M | – | (8.4%) |
| Q3 diluted earnings per shareGAAP | $ 3.14 | – | 8.3% |
| Q3 adjusted diluted earnings per sharenon-GAAP | $ 2.54 | – | (8.6%) |
| Q3 effective tax rateGAAP | 21.5 % | – | – |
| Q3 total revenue per available seat mile (TRASM)other | 20.19 | – | 15.9 |
| Q3 passenger revenue per available seat mile (PRASM)other | 18.34 | – | 16.1 |
| Q3 average yield per RPMother | 21.86 | – | 16.8 |
| Q3 cost per ASM (CASM)GAAP | 18.56 | – | 17.3 |
| Q3 CASM-exnon-GAAP | 13.09 | – | 7.8 |
| Q3 average aircraft fuel price per gallonother | $ 3.90 | – | 60.3 |
| Q3 fuel gallons consumedother | 1.24B | – | 0.8 |
| Q3 capacity, ASMsother | 88.54B | – | 1.3 |
| Q3 passengersother | 49.53M | – | 2.4 |
| Q3 revenue passenger miles (RPMs)other | 74.28B | – | 0.7 |
| Q3 consolidated passenger load factorother | 83.9 % | – | (0.5) pts. |
| Q3 cargo revenue ton milesother | 936M | – | 5.2 |
| Q3 aircraft in fleet at end of periodother | 1,575 | – | 6.0 |
| Q3 average stage lengthother | 1,468 (miles) | – | (2.7) |
| Q3 employee headcount, as of September 30other | 117.9K | – | 5.4 |
| Q3 adjusted EBITDAnon-GAAP | $2.03B | – | – |
| Q3 adjusted EBITDA marginnon-GAAP | 11.4 % | – | – |
| Q3 adjusted EBITDARnon-GAAP | $2.31B | – | – |
| Q3 free cash flownon-GAAP | −$1.84B | – | – |
| Nine months total operating revenueGAAP | $50.16B | – | 14.8% |
| Nine months operating incomeGAAP | $3.54B | – | 6.4% |
| Nine months net incomeGAAP | $2.53B | – | 9.7% |
| Nine months diluted earnings per shareGAAP | $ 7.74 | – | 10.3% |
| Nine months free cash flownon-GAAP | $1.38B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Domestic passenger revenueNot separately disclosed. | $9.71B | – | 19.9% |
| Europe passenger revenueNot separately disclosed. | $3.32B | – | 13.3% |
| Middle East/India/Africa passenger revenueNot separately disclosed. | $287M | – | (17.3%) |
| Atlantic passenger revenueNot separately disclosed. | $3.61B | – | 10.1% |
| Pacific passenger revenueNot separately disclosed. | $1.58B | – | 16.5% |
| Latin America passenger revenueNot separately disclosed. | $1.34B | – | 24.2% |
| International passenger revenueNot separately disclosed. | $6.53B | – | 14.3% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 outlook
- Revenueover 20% year-over-year increase
- NoteUnited expects Q4 total operating revenue growth to accelerate versus Q3 and set another record.
- NoteStarlink availability is expected to reach 61% by the end of 2026.
- NoteStarlink availability is expected to reach 87% by June 1.
- NoteStarlink is expected to be available fleet-wide by the end of 2027.
Capital returns
- Repurchases of common stock of $ 27 (in millions) for the nine months ended September 30, 2026.
What drove it
- Total operating revenue rose 17.4% while capacity increased 1.3%.
- Premium revenue was up 17%, revenue from Basic Economy was up 16%, loyalty revenue was up 17% and cargo revenue was up 23% compared to the third quarter of 2025.
- Contracted business revenue was up 26% compared to the third quarter of 2025.
- Economy cabin unit revenue was up 17% year-over-year.
- TRASM was up 15.9% and PRASM was up 16.1%.
- United carried a record 49.5 million revenue customers during the quarter.
- Starlink was installed on more than 640 aircraft and was available on about half of all United flights, including regional flights.
Concerns
- Aircraft fuel expense increased 61.6% to $ 4,843 (in millions), while the average aircraft fuel price per gallon increased to $ 3.90 from $ 2.43.
- Total operating expense increased 18.8%, faster than total operating revenue growth of 17.4%.
- Adjusted operating income declined 6.9%, adjusted pre-tax income declined 8.7% and adjusted diluted earnings per share declined 8.6%.
- Adjusted operating margin declined (1.8) pts. to 6.9 %, and adjusted pre-tax margin declined (1.8) pts. to 6.2 %.
- Q3 free cash flow was $ (1,843) (in millions), compared with $ (153) (in millions) in the prior-year quarter.
- Middle East/India/Africa passenger revenue declined (17.3%).
What to watch
- Whether Q4 total operating revenue growth exceeds 20% year over year and accelerates versus Q3.
- Fuel-price volatility following a Q3 average aircraft fuel price per gallon of $ 3.90.
- The conversion of Starlink availability, which reached more than 640 aircraft, into customer and revenue benefits.
- Delivery on the plan for Starlink availability to reach 61% by the end of 2026 and 87% by June 1.
- Adjusted margin recovery after Q3 adjusted operating margin of 6.9 % and adjusted pre-tax margin of 6.2 %.
- The pace of capital expenditures and free-cash-flow generation.
Balance sheet and cash flow
- Ending available liquidity of $17.7 billion.
- Cash and cash equivalents of $ 6,648 (in millions) at September 30, 2026.
- Short-term investments of $ 8,005 (in millions) at September 30, 2026.
- Debt, finance lease obligations and other financial liabilities of $ 26,398 (in millions) at September 30, 2026.
- Adjusted total debt of $ 35,120 (in millions) at September 30, 2026.
- Adjusted net debt of $ 20,467 (in millions) at September 30, 2026.
- Net leverage of 2.4 at September 30, 2026.
- Net cash provided by operating activities of $ 465 (in millions) for the three months ended September 30, 2026.
- Net cash used in investing activities of $ (3,839) (in millions) for the three months ended September 30, 2026.
- Capital expenditures, net of flight equipment purchase deposit returns of $ 2,139 (in millions) for the three months ended September 30, 2026.
- Adjusted capital expenditures of $ 2,193 (in millions) for the three months ended September 30, 2026.
- Net cash provided by operating activities of $ 6,874 (in millions) for the nine months ended September 30, 2026.
- Net cash used in investing activities of $ (7,192) (in millions) for the nine months ended September 30, 2026.
- Capital expenditures, net of flight equipment purchase deposit returns of $ 5,154 (in millions) for the nine months ended September 30, 2026.
- On October 16, United expanded its revolving credit facility, with available liquidity rising from $3 billion previously to $5 billion under the new facility.
Analysis
United reported record Q3 total operating revenue of $ 17,875 (in millions), up 17.4%, despite capacity growth of only 1.3%. Passenger revenue increased 17.6%, cargo revenue increased 22.9%, and TRASM increased 15.9%. Management described broad-based strength in Premium, Basic Economy, loyalty, cargo and contracted business revenue. Domestic passenger revenue increased 19.9%, while international passenger revenue increased 14.3%; Middle East/India/Africa passenger revenue was the exception, declining (17.3%).
The cost profile constrained the conversion of unit-revenue growth into underlying earnings. Aircraft fuel expense increased 61.6% to $ 4,843 (in millions), with average fuel price per gallon at $ 3.90 compared with $ 2.43. Total operating expense increased 18.8%, exceeding revenue growth. GAAP operating income rose 3.6% to $ 1,446 (in millions), aided by special charges (credits), while adjusted operating income declined 6.9% to $ 1,231 (in millions). Adjusted operating margin declined to 6.9 % from 8.7 %.
GAAP net income increased 8.5% to $ 1,029 (in millions), and diluted earnings per share increased 8.3% to $ 3.14. Adjusted net income declined 8.4% to $ 833 (in millions), and adjusted diluted earnings per share declined 8.6% to $ 2.54. The divergence reflects, among other items, special charges (credits) of $ (215) (in millions) in Q3 2026, primarily including gains on aircraft sale-leaseback transactions. The effective tax rate was 21.5 %, compared with 24.4 %.
Cash generation was pressured by investment activity. Q3 net cash provided by operating activities was $ 465 (in millions), net cash used in investing activities was $ (3,839) (in millions), and free cash flow was $ (1,843) (in millions). At September 30, 2026, cash and cash equivalents were $ 6,648 (in millions), short-term investments were $ 8,005 (in millions), and debt, finance lease obligations and other financial liabilities were $ 26,398 (in millions). United also expanded its revolving credit facility on October 16, increasing available liquidity from $3 billion previously to $5 billion under the new facility.
For Q4, United expects total operating revenue growth to accelerate versus Q3, set another record and increase by over 20% year over year. The supplied release does not provide numerical guidance for earnings, margins, operating expenses or fuel. Operationally, the company is positioning Starlink as a differentiator, with more than 640 equipped aircraft and planned availability of 61% by the end of 2026, 87% by June 1, and fleet-wide availability by the end of 2027.
Management, verbatim
Our employees met the challenge of our ever-changing environment and our results prove the resilience of focusing on building a brand-loyal airline for customers.
Scott Kirby, United CEO
We are winning new long-term, brand-loyal United customers because they are trying us for Starlink but staying with us for the industry-leading app, great service, on-board product and technology,
Scott Kirby, United CEO
Not in the filing
stated, not guessed- Previous-quarter comparisons for reported Q3 metrics.
- Q4 2026 numerical guidance for earnings, earnings per share, operating margin, pre-tax margin, operating expenses, CASM, CASM-ex, capacity, fuel price and tax rate.
- Prior guidance, because no previous outlook section was provided.
- Gross margin, which was not reported.
- Dividend amount or dividend policy, which was not reported.
- Q3 cash flow statement line items other than those presented in the free-cash-flow reconciliation.
- A separate Q3 reported free-cash-flow capital-return figure beyond the nine-month common-stock repurchase amount.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.