United Airlines Holdings, Inc.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals.
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This Management's Discussion and Analysis of Financial Condition and Results of Operations is provided as a supplement to and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "2025 Form 10-K") to enhance the understanding of our results of operations, financial condition and cash flows.
United Airlines Holdings, Inc. (together with its consolidated subsidiaries, "UAL" or the "Company") is a holding company incorporated in Delaware and its wholly-owned subsidiary is United Airlines, Inc. (together with its consolidated subsidiaries, "United"). As UAL consolidates United for financial statement purposes, and United comprises substantially all of UAL's operating revenues, operating expenses, assets, liabilities and operating cash flows, disclosures that relate to activities of United also apply to UAL, unless otherwise noted. We sometimes use the words "we," "our," "us," and the "Company" in this report for disclosures that relate to all of UAL and United.
Key Trends Impacting Our Business
Our industry is dynamic, highly competitive and subject to a number of industry-specific factors and global macroeconomic conditions that may cause our actual results of operations to differ from our historical results of operations or current expectations. The economic, market and legal factors and trends that we currently believe are or will be most impactful to our results of operations and financial condition include the following:
•Geopolitical Conflicts in the Middle East: During the first quarter of 2026, geopolitical tensions in the Middle East caused disruption of flying in the region and contributed to materially higher global fuel prices that could continue in the future. In response, we took immediate and decisive actions to mitigate the impact of the operational disruptions and rising fuel costs, including reducing lower-margin capacity and adjusting fares and fees.
•Regulatory or Court Decisions Restricting Our Capacity Targets: We remain vulnerable to regulatory actions (including by the Federal Aviation Administration) or court decisions that would force us to limit our planned capacity at our hub locations in ways that are not aligned with our business strategy.
•Governmental Funding Constraints: We are working with our U.S. federal government partners to reduce passenger travel disruptions due to budgetary decisions limiting or delaying government spending or reducing staffing of government agencies with which we interact routinely, including as a result of a federal government shutdown.
We will monitor the potential favorable or unfavorable impacts of these and other factors on our business, operations, financial condition, future results of operations, liquidity and financial flexibility, which are dependent on future developments, including as a result of those factors discussed in Part I, Item 1A. Risk Factors, of our 2025 Form 10-K.
RESULTS OF OPERATIONS
The following discussion provides an analysis of our results of operations and reasons for material changes therein for the three months ended March 31, 2026, as compared to the corresponding period in 2025.
First Quarter 2026 Compared to First Quarter 2025
Significant components of the Company's operating results for the three months ended March 31 are as follows (in millions, except percentage changes):
| 2026 | 2025 | Increase (Decrease) | % Change | |||||||||||||||||||
| Operating revenue | $ | 14,608 | $ | 13,213 | $ | 1,396 | 10.6 | |||||||||||||||
| Operating expense | 13,611 | 12,605 | 1,006 | 8.0 | ||||||||||||||||||
| Operating income | 997 | 607 | 390 | 64.2 | ||||||||||||||||||
| Nonoperating expense, net | (127) | (129) | (2) | (1.6) | ||||||||||||||||||
| Income before income taxes | 870 | 478 | 392 | 81.9 | ||||||||||||||||||
| Income tax expense | 172 | 91 | 81 | 88.4 | ||||||||||||||||||
| Net income | $ | 699 | $ | 387 | $ | 311 | 80.4 | |||||||||||||||
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Certain consolidated statistical information for the Company's operations for the three months ended March 31 is as follows:
| 2026 | 2025 | Increase (Decrease) | % Change | ||||||||||||||||||||
| Passengers (thousands) (a) | 42,486 | 40,806 | 1,680 | 4.1 | |||||||||||||||||||
| Revenue passenger miles ("RPMs" or "traffic") (millions) (b) | 63,385 | 59,517 | 3,868 | 6.5 | |||||||||||||||||||
| Available seat miles ("ASMs" or "capacity") (millions) (c) | 77,698 | 75,155 | 2,543 | 3.4 | |||||||||||||||||||
| Passenger load factor (d) | 81.6 | % | 79.2 | % | 2.4 pts. | N/A | |||||||||||||||||
| Passenger revenue per available seat mile ("PRASM") (cents) | 16.95 | 15.78 | 1.16 | 7.4 | |||||||||||||||||||
| Total revenue per ASM ("TRASM") (cents) | 18.80 | 17.58 | 1.22 | 6.9 | |||||||||||||||||||
| Average yield per revenue passenger mile ("Yield") (cents) (e) | 20.77 | 19.93 | 0.84 | 4.2 | |||||||||||||||||||
| Cargo revenue ton miles ("CTM") (millions) (f) | 878 | 889 | (11) | (1.2) | |||||||||||||||||||
| Cost per ASM ("CASM") (cents) | 17.52 | 16.77 | 0.75 | 4.4 | |||||||||||||||||||
| Average price per gallon of fuel, including fuel taxes | $ | 2.78 | $ | 2.53 | $ | 0.25 | 9.9 | ||||||||||||||||
| Fuel gallons consumed (millions) | 1,093 | 1,067 | 26 | 2.4 | |||||||||||||||||||
Employee headcount, as of March 31 | 115,600 | 109,200 | 6,400 | 5.9 | |||||||||||||||||||
| (a) The number of revenue passengers measured by each flight segment flown. | |||||||||||||||||||||||
| (b) The number of scheduled miles flown by revenue passengers. | |||||||||||||||||||||||
| (c) The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. | |||||||||||||||||||||||
| (d) Revenue passenger miles divided by available seat miles. | |||||||||||||||||||||||
| (e) The average passenger revenue received for each revenue passenger mile flown. | |||||||||||||||||||||||
| (f) The number of cargo revenue tons transported multiplied by the number of miles flown. | |||||||||||||||||||||||
Operating Revenue. The table below shows year-over-year comparisons by type of operating revenue for the three months ended March 31 (in millions, except for percentage changes):
| 2026 | 2025 | Increase (Decrease) | % Change | |||||||||||||||||
| Passenger revenue | $ | 13,166 | $ | 11,860 | $ | 1,306 | 11.0 | |||||||||||||
| Cargo revenue | 422 | 429 | (7) | (1.6) | ||||||||||||||||
| Other operating revenue | 1,020 | 923 | 97 | 10.5 | ||||||||||||||||
| Total operating revenue | $ | 14,608 | $ | 13,213 | $ | 1,396 | 10.6 | |||||||||||||
The table below presents selected passenger revenue and operating data, broken out by geographic region, expressed as year-over-year changes for the three months ended March 31:
Increase (Decrease) from 2025: | |||||||||||||||||||||||||||||
| Domestic | Atlantic | Pacific | Latin | Total | |||||||||||||||||||||||||
| Passenger revenue (in millions) | $ | 734 | $ | 328 | $ | 219 | $ | 25 | $ | 1,306 | |||||||||||||||||||
| Passenger revenue | 10.2 | % | 18.9 | % | 14.5 | % | 1.8 | % | 11.0 | % | |||||||||||||||||||
| Average fare per passenger | 6.4 | % | 5.0 | % | (0.6) | % | 2.3 | % | 6.6 | % | |||||||||||||||||||
| Yield | 5.9 | % | 4.6 | % | 1.6 | % | 0.1 | % | 4.2 | % | |||||||||||||||||||
| PRASM | 7.9 | % | 11.0 | % | 8.1 | % | 0.9 | % | 7.4 | % | |||||||||||||||||||
| Passengers | 3.6 | % | 13.2 | % | 15.1 | % | (0.5) | % | 4.1 | % | |||||||||||||||||||
| RPMs | 4.0 | % | 13.7 | % | 12.7 | % | 1.7 | % | 6.5 | % | |||||||||||||||||||
| ASMs | 2.2 | % | 7.1 | % | 5.9 | % | 0.8 | % | 3.4 | % | |||||||||||||||||||
| Passenger load factor (points) | 1.5 | 4.5 | 4.9 | 0.7 | 2.4 | ||||||||||||||||||||||||
Passenger revenue increased $1.3 billion, or 11.0%, in the first quarter of 2026 as compared to the year-ago period, primarily due to a 3.4% increase in capacity, a 4.2% increase in yield and a 4.1% increase in the number of passengers flown.
Other operating revenue increased $97 million, or 10.5%, in the first quarter of 2026 as compared to the year-ago period, primarily due to an increase in mileage revenue from non-airline partners, including credit card spending with our co-branded credit card partner, JPMorgan Chase Bank, N.A.
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Operating Expenses. The table below includes data related to the Company's operating expenses for the three months ended March 31 (in millions, except for percentage changes):
| 2026 | 2025 | Increase (Decrease) | % Change | |||||||||||||||||
| Salaries and related costs | $ | 4,562 | $ | 4,155 | $ | 406 | 9.8 | |||||||||||||
| Aircraft fuel | 3,041 | 2,701 | 339 | 12.6 | ||||||||||||||||
| Landing fees and other rent | 948 | 873 | 75 | 8.6 | ||||||||||||||||
| Aircraft maintenance materials and outside repairs | 854 | 731 | 123 | 16.8 | ||||||||||||||||
| Depreciation and amortization | 756 | 727 | 29 | 4.0 | ||||||||||||||||
| Regional capacity purchase | 692 | 650 | 42 | 6.5 | ||||||||||||||||
| Distribution expenses | 522 | 496 | 26 | 5.2 | ||||||||||||||||
| Aircraft rent | 83 | 51 | 32 | 62.0 | ||||||||||||||||
| Special charges (credits) | (389) | (108) | 282 | NM | ||||||||||||||||
| Other operating expenses | 2,542 | 2,326 | 216 | 9.3 | ||||||||||||||||
| Total operating expense | $ | 13,611 | $ | 12,605 | $ | 1,006 | 8.0 | |||||||||||||
| NM - Greater than 100% change or otherwise not meaningful. | ||||||||||||||||||||
Salaries and related costs increased $406 million, or 9.8%, in the first quarter of 2026 as compared to the year-ago period, primarily due to increased pay as a result of the increase in flying activity, a 5.9% increase in headcount, and an increase in pay rates for eligible employee groups.
Aircraft fuel expense increased $339 million, or 12.6%, in the first quarter of 2026 as compared to the year-ago period, primarily due to a higher average price per gallon of fuel and increased consumption from increased flight activity.
Landing fees and other rent increased $75 million, or 8.6%, in the first quarter of 2026 as compared to the year-ago period, primarily due to higher landed weight volume from increased flight activity and rate increases at various airports.
Aircraft maintenance materials and outside repairs increased $123 million, or 16.8%, in the first quarter of 2026 as compared to the year-ago period, primarily due to higher volumes of engine overhauls and component parts repairs due to increased flight activity.
For details on the Company's Special charges (credits), see Note 10 to the financial statements included in Part I, Item 1 of this report.
Other operating expenses increased $216 million, or 9.3%, in the first quarter of 2026 as compared to the year-ago period, primarily due to an increase in flight activity and on-board passengers, including increased costs for on-board catering, ground handling and passenger services, crew-related expenses, as well as expenditures related to information technology projects and services.
Nonoperating Income (Expense). The table below shows year-over-year comparisons of the Company's nonoperating income (expense) for the three months ended March 31 (in millions, except for percentage changes):
| 2026 | 2025 | Increase (Decrease) | % Change | |||||||||||||||||
| Interest expense | $ | (327) | $ | (356) | $ | (29) | (8.1) | |||||||||||||
| Interest income | 135 | 164 | (29) | (17.7) | ||||||||||||||||
| Interest capitalized | 54 | 48 | 7 | 13.7 | ||||||||||||||||
| Unrealized losses on investments, net | (13) | (21) | (7) | (35.4) | ||||||||||||||||
| Miscellaneous, net | 24 | 36 | (11) | (32.1) | ||||||||||||||||
| Total nonoperating expense, net | $ | (127) | $ | (129) | $ | (2) | (1.6) | |||||||||||||
Interest expense decreased $29 million, or 8.1%, in the first quarter of 2026 as compared to the year-ago period, primarily due to lower debt balances as a result of various debt prepayments and scheduled amortization.
Interest income decreased $29 million, or 17.7%, in the first quarter of 2026 as compared to the year-ago period, primarily due to lower levels of cash and short-term investments and lower interest rates.
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Unrealized losses on investments, net, represent changes in the market value of the Company's investments in equity securities. See Note 7 to the financial statements included in Part I, Item 1 of this report for information related to these equity investments.
Income Taxes. See Note 5 to the financial statements included in Part I, Item 1 of this report for information related to income taxes.
LIQUIDITY AND CAPITAL RESOURCES
Current Liquidity
As of March 31, 2026, the Company had $14.2 billion in unrestricted cash, cash equivalents and short-term investments, as compared to $12.2 billion at December 31, 2025. We believe that our existing cash, cash equivalents and short-term investments, together with cash generated from operations, will be sufficient to satisfy our anticipated liquidity needs for the next 12 months, and we expect to meet our long-term liquidity needs with our anticipated access to the capital markets and projected cash from operations.
The Company has a $3.0 billion revolving credit facility as of March 31, 2026. The revolving credit facility is secured by certain route authorities and airport slots and gates. No borrowings were outstanding under the revolving credit facility as of March 31, 2026.
We have a significant amount of fixed obligations, including debt, leases of aircraft, airport and other facilities, and pension funding obligations. As of March 31, 2026, the Company had approximately $31.0 billion of debt, finance lease, operating lease and other financial liabilities, including $3.0 billion that will become due in the next 12 months. In addition, we have substantial noncancelable commitments for capital expenditures, including the acquisition of certain new aircraft and related spare engines. Our debt agreements contain customary terms and conditions as well as various affirmative, negative and financial covenants that, among other things, limit the ability of the Company and its subsidiaries, under certain circumstances, to incur additional indebtedness and pay dividends or repurchase stock. As of March 31, 2026, the Company was in compliance with its covenants under these debt agreements. As of March 31, 2026, a substantial portion of the Company's assets, principally aircraft and certain related assets, certain route authorities and airport slots and gates, was pledged under various loan and other agreements. See Note 8 to the financial statements included in Part I, Item 1 of this report for additional information on aircraft financing and other debt instruments.
On February 3, 2026, the Company entered into Amendment No. 4 to Term Loan Credit and Guaranty Agreement that lowered the margin on its interest rate from 2.00% to 1.75%, in the case of Term SOFR (as such term is defined in the Term Loan Credit and Guaranty Agreement, dated as of April 21, 2021, as amended) loans, and from 1.00% to 0.75%, in the case of loans at other market rates.
The Company has backstop financing commitments available from certain of its aircraft manufacturers for a limited number of its future aircraft deliveries, subject to certain customary conditions.
As of March 31, 2026, United had firm commitments to purchase aircraft from The Boeing Company ("Boeing") and Airbus S.A.S. ("Airbus") as presented in the table below:
| Contractual Aircraft Deliveries | Expected Aircraft Deliveries (b) | |||||||||||||||||||||||||||||||||||||||||||
| Aircraft Type | Number of Firm Commitments (a) | Last Nine Months of 2026 | 2027 | After 2027 | Last Nine Months of 2026 | 2027 | After 2027 | |||||||||||||||||||||||||||||||||||||
| 787 | 146 | 44 | 9 | 93 | 16 | 26 | 104 | |||||||||||||||||||||||||||||||||||||
| 737 MAX 9 | 78 | 78 | — | — | 55 | 23 | — | |||||||||||||||||||||||||||||||||||||
| 737 MAX 10 | 167 | 3 | 44 | 120 | — | 20 | 147 | |||||||||||||||||||||||||||||||||||||
| A321neo | 114 | 13 | 1 | 100 | 9 | 5 | 100 | |||||||||||||||||||||||||||||||||||||
| A321XLR | 50 | 8 | 26 | 16 | 7 | 15 | 28 | |||||||||||||||||||||||||||||||||||||
| A350 | 45 | — | — | 45 | — | — | — | |||||||||||||||||||||||||||||||||||||
| (a) United also has options and purchase rights for additional aircraft. | ||||||||||||||||||||||||||||||||||||||||||||
(b) Expected aircraft deliveries reflect adjustments communicated by Boeing and Airbus or estimated by United. However, aircraft deliveries are subject to a number of variables, as further described in Part I, Item 1A. Risk Factors of the 2025 Form 10-K, and we cannot guarantee delivery of any particular aircraft at any specific time notwithstanding firm purchase commitments. | ||||||||||||||||||||||||||||||||||||||||||||
The aircraft listed in the table above are scheduled for delivery through 2034. The amount and timing of the Company's future capital commitments could change to the extent that: (i) the Company and the aircraft manufacturers, with whom the Company has existing orders for new aircraft, agree to modify (or further modify) the contracts governing those orders; (ii) rights are
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exercised pursuant to the relevant agreements to cancel deliveries or modify the timing of deliveries; or (iii) the aircraft manufacturers are unable to deliver in accordance with the terms of those orders.
Sources and Uses of Cash
The following table summarizes our cash flows for the three months ended March 31 (in millions):
| Total cash provided by (used in): | 2026 | 2025 | Increase (Decrease) | ||||||||||||||
| Operating activities | $ | 4,799 | $ | 3,710 | $ | 1,090 | |||||||||||
| Investing activities | (1,894) | (1,462) | 432 | ||||||||||||||
| Financing activities | (976) | (1,457) | (481) | ||||||||||||||
| Net increase in cash, cash equivalents and restricted cash | $ | 1,929 | $ | 791 | $ | 1,139 | |||||||||||
Operating Activities. Cash flows provided by operating activities increased approximately $1.1 billion in the first quarter of 2026 as compared to the year-ago period, primarily due to an operating income increase period-over-period as well as a net change in various working capital items, including an increase in advance ticket sales.
Investing Activities. Cash flows used in investing activities increased approximately $0.4 billion in the first quarter of 2026 as compared to the year-ago period, primarily due to an increase in capital expenditures primarily attributable to the purchase of aircraft and advance deposits for future aircraft purchases.
Financing Activities. Significant financing events in the three months ended March 31, 2026 were as follows:
Debt Issuances. During the three months ended March 31, 2026, the Company received and recorded:
•$1.0 billion from the issuance of 5.375% Senior Notes due 2031;
•$1.0 billion from the issuance of 4.875% Senior Notes due 2029; and
•$258 million from various aircraft financings.
Debt, Finance Lease and Other Financial Liability Principal Payments. During the three months ended March 31, 2026, the Company made payments for debt, finance leases, and other financial liabilities of $3.1 billion, including the prepayment of the $2.0 billion 4.375% Senior Secured Notes due April 15, 2026.
See Note 8 to the financial statements included in Part I, Item 1 of this report for additional information on debt issuances and debt prepayment.
Share repurchase. As part of our capital deployment program, the Company's Board of Directors authorized a share repurchase program in October 2024. In the three months ended March 31, 2026, the Company repurchased, through open market purchases, approximately 0.3 million shares of UAL common stock for a total of approximately $27 million as part of its share repurchase program.
Credit Ratings. As of the filing date of this report, UAL and United had the following corporate credit ratings:
| S&P | Moody's | Fitch | ||||||||||||||||||
| UAL | BB+ | Ba1 | BB+ | |||||||||||||||||
| United | BB+ | * | BB+ | |||||||||||||||||
| *The credit agency does not issue corporate credit ratings for subsidiary entities. | ||||||||||||||||||||
The Company was upgraded by S&P in August 2025 and assigned a positive outlook in January 2026, upgraded by Moody's in November 2025 and assigned a stable outlook, and upgraded by Fitch in December 2025 and assigned a stable outlook. A rating reflects only the view of a rating agency and is not a recommendation to buy, sell or hold securities. Ratings can be revised upward or downward at any time by a rating agency if such rating agency decides that circumstances warrant such a change. Downgrades from these rating levels, among other things, could restrict the availability, or increase the cost, of future financing for the Company as well as affect the fair market value of existing debt.
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Commitments, Contingencies and Liquidity Matters. As described in the 2025 Form 10-K, the Company's liquidity may be adversely impacted by a variety of factors, including, but not limited to, pension funding obligations, reserve requirements associated with credit card processing agreements, guarantees, commitments and contingencies.
See the 2025 Form 10-K and Notes 7, 8 and 9 to the financial statements contained in Part I, Item 1 of this report for additional information.
CRITICAL ACCOUNTING POLICIES
Next expected filings
- ~2026-07-16 10-Q expected by 2026-08-07 (in 76 days)
- ~2026-10-15 10-Q expected by 2026-11-06 (in 167 days)
- ~2027-02-11 10-K expected by 2027-02-18 (in 286 days)
- ~2027-04-21 10-Q expected by 2027-05-13 (in 355 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-04-22 10-Q Quarterly Report
- 2026-04-21 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-07 DEF 14A Proxy Statement
- 2026-02-12 10-K Annual Report
- 2026-02-06 8-K Material Agreement Entered; Material Financial Obligation; Other Events; Financial Statements and Exhibits
- 2026-02-02 8-K Material Agreement Entered; Material Financial Obligation; Other Events; Financial Statements and Exhibits
- 2026-01-20 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-10-16 10-Q Quarterly Report
- 2025-10-15 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-07-17 10-Q Quarterly Report
- 2025-07-16 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-07-09 8-K Material Agreement Terminated; Earnings Release
- 2025-05-28 8-K/A Officer/Director Change
- 2025-04-16 10-Q Quarterly Report
- 2025-04-15 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits