United Airlines (UAL) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 revenue of $14.6 billion, up 10.6% year-over-year, driven by strong demand, higher passenger volumes, and yields across all segments and regions.

• Net income increased 80.4% to $699 million, with diluted EPS up 85% to $2.14 and adjusted EPS up 31% to $1.19.

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

• Achieved best Q1 on-time departure rate among top U.S. carriers and carried a record number of passengers.

• Announced major commercial initiatives, including premium product investments, digital enhancements, and fleet upgrades.

Financial highlights

• Q1 EPS of $1.19, up 31% year-over-year; diluted EPS $2.14; net income $699 million, up 80.4%.

• Pre-tax margin expanded to 3.4%; pre-tax earnings reached $0.9 billion (6.0% margin).

• PRASM increased 7.4% year-over-year; premium revenues up 13.6% on 4.4% higher capacity.

• Free cash flow reached $2.9 billion; operating cash flow $4.8 billion.

• Total debt at quarter end was $24.2 billion; net leverage at 2.0x trailing twelve months.

Outlook and guidance

• Q2 EPS expected between $1 and $2, assuming $4.30/gallon fuel.

• Full-year 2026 EPS guidance widened to $7–$11, with double-digit RASM growth expected.

• Targeting double-digit pre-tax margins in 2027, with 100% fuel cost pass-through by year-end.

• Q3 and Q4 capacity expected to be flat to up 2% year-over-year; planned capacity reduced by 5 points for the rest of 2026.

• Over 250 new aircraft deliveries expected by April 2028; Starlink Wi-Fi fleet-wide by end of 2027.