AI Takeaway
United Airlines Holdings grew Q2 FY2026 revenue 16.0% YoY to $17.67B on strong passenger demand and yield gains, but a 79.4% jump in average fuel price drove operating expenses up 19.2%, compressing operating margin to 6.2% and pulling net income down 17.3% to $805M.
Revenue
$17.67B
++15.99% YoY
EPS (Basic)
$2.48
-17.33% YoY
Operating Income
$1.1B
-17.28% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Passenger revenue increased $2.3 billion, or 16.4%, in Q2 FY2026 versus the year-ago period, primarily due to a 12.1% increase in yield and a 5.4% increase in passengers flown; total operating revenue reached $17,672M, up 16.0% YoY.
Source: 10-Q Item 2 MD&A
Aircraft fuel expense increased $2.3 billion, or 84.1%, in Q2 FY2026, primarily due to a higher average price per gallon ($4.19 vs $2.34, +79.4%) and increased consumption from higher flight activity; the MD&A attributes elevated fuel prices to geopolitical conflicts in the Middle East disrupting regional flying.
Source: 10-Q Item 2 MD&A
Total operating expense rose 19.2% to $16,576M, outpacing 16.0% revenue growth, driving operating income down 17.3% to $1,096M and operating margin to 6.2% from 8.7% a year ago; CASM rose 15.2% to 18.99 cents.
Source: 10-Q Item 2 MD&A
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Upgrade to unlockThe MD&A explicitly states that geopolitical conflicts in the Middle East during H1 2026 disrupted regional flying and contributed to materially higher global fuel prices, with average fuel price per gallon rising 79.4% YoY to $4.19 in Q2. Continued escalation could further pressure margins, which already compressed to 6.2% operating margin.
Source: 10-Q Item 2 MD&A
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Upgrade to unlockReported EPS of $1.99 versus the $1.89 analyst consensus — a +5.0% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $17.67B | $15.24B | +15.99% |
Operating Income | $1.1B | $1.32B | -17.28% |
Net Income | $805M | $973M | -17.27% |
EPS (Basic) | $2.48 | $3.00 | -17.33% |
EPS (Diluted) | $2.46 | $2.97 | -17.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $84.57B | $77.16B | +9.60% |
Current Assets | $21.66B | $20.26B | +6.94% |
Current Liabilities | $27.76B | $28.99B | -4.24% |
Stockholders' Equity | $16.7B | $13.37B | +24.86% |
Cash & Equivalents | $10.17B | $9.35B | +8.68% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $6.41B | $5.93B | +8.13% |
Investing Cash FlowYTD | $-3.35B | $-3.04B | -10.26% |
Financing Cash FlowYTD | $1.17B | $-2.3B | +150.96% |
Share BuybacksYTD | $27M | $589M | -95.42% |
D&A | $762M | $733M | +3.96% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 6.2% | 8.7% | -2.49% |
Net Margin | 4.6% | — | — |
ROE | 4.8% | — | — |
ROA | 1.0% | — | — |
Current Ratio | $0.78 | — | — |
United Airlines delivered a strong Q1 2026, with revenue rising 10.6% YoY to $14.6B and net income surging 80.6% to $699M, driven by robust demand and improved operating leverage.
UAL delivered FY2025 revenue of $59.1B (+3.5% YoY) and net income of $3.35B (+6.5% YoY), but operating margin contracted ~1 percentage point to 7.98% amid higher costs and a significant ramp-up in capital investment.
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The filing does not include analyst consensus estimates, so a beat/miss cannot be confirmed from this 10-Q. However, UAL reported revenue of $17.67B (up 16.0% YoY) and diluted EPS of $2.46 (down 17.2% YoY), showing top-line growth but bottom-line pressure from fuel costs.
Net income fell 17.3% YoY to $805M primarily because aircraft fuel expense surged 84.1% to $5.11B as average fuel price per gallon jumped 79.4% to $4.19, driven by geopolitical conflicts in the Middle East. Total operating expenses grew 19.2%, outpacing the 16.0% revenue increase, compressing operating margin to 6.2% from 8.7% a year earlier.
As of June 30, 2026, UAL held $16.6 billion in unrestricted cash, cash equivalents and short-term investments, up from $12.2 billion at December 31, 2025. Cash and equivalents specifically stood at $10.17B, up 8.7% YoY.
UAL's MD&A highlighted geopolitical conflicts in the Middle East disrupting regional flying and driving up fuel prices, potential regulatory or court-imposed capacity restrictions at hub airports, and government funding constraints including risk of a federal shutdown affecting operations. These factors are discussed under 'Key Trends Impacting Our Business' in Item 2 of the filing.
United Airlines did not repurchase any shares during the three months ended June 30, 2026. For the six-month period, it repurchased just 0.3 million shares for $27 million, down 95.4% from $589 million in the prior-year six-month period.