Key facts
- United Airlines expects 2026 adjusted earnings per share at the high end of its $9 to $11 forecast.
- The airline anticipates its full-year fuel bill will be approximately $6 billion higher than initially expected.
- For the third quarter, United forecast adjusted earnings of $2.50 to $3.50 per share.
- United reported Q2 adjusted diluted earnings per share of $1.99, surpassing analyst estimates.
- Total operating revenue rose 16% year-over-year in the second quarter.
United Airlines anticipates its full-year 2026 adjusted earnings per share will be at the higher end of its previously stated $9 to $11 range, driven by strong travel demand and increased fares. This outlook comes despite a significant surge in fuel costs, with the company expecting its fuel bill to be approximately $6 billion higher than initially projected for the year.
For the third quarter, United forecast adjusted earnings per share between $2.50 and $3.50, a midpoint that falls below the $3.60 average estimate from analysts surveyed by LSEG. The airline's second-quarter results, however, surpassed Wall Street expectations, with adjusted diluted earnings per share of $1.99 and total operating revenue up 16% year-over-year.
United reported Q2 pre-tax earnings of $1.0 billion and an adjusted pre-tax margin of 4.8%. The company is implementing strategies to recover fuel cost increases, expecting to recoup 80% to 90% in the third quarter and 100% by the fourth quarter, supported by a 12% yield growth. CEO Scott Kirby emphasized the airline's investments in customer experience, including Starlink Wi-Fi, which is now on 450 aircraft, and innovations like the "Relax Row."
Operationally, United achieved its best second-quarter on-time departure rate since 2021. The company also raised $3.7 billion in new liquidity and prepaid approximately $1 billion of debt, targeting an investment-grade rating in 2026. United's first Airbus A321XLR is slated to enter domestic service this fall.