Record Quarterly Revenue
Consolidated total operating revenue rose 10.6% year‑over‑year to a record first quarter of $14.6 billion; TRASM increased 6.9% year‑over‑year and all regions reported positive PRASM.
United Airlines Holdings
· UAL
April 21st, 2026
Summary
- Earnings Call Date:
- 2026-04-21
- Change Since:
- +34.40%
- Next Earnings Date:
- 2026-07-15
Earnings Call Sentiment
PositiveThe call emphasized strong commercial momentum, robust revenue and yield acceleration, premium and loyalty growth, solid operational performance, significant free cash flow generation and decisive balance sheet actions — all supported by a large slate of product and fleet initiatives designed to de‑commoditize the airline. Counterbalancing these positives are a sharp and volatile increase in jet fuel costs (a $340M headwind in Q1), near‑term CASM‑ex pressure, proactive capacity reductions that reduce near‑term volume, regulatory constraints at O'Hare, and widened guidance reflecting scenario risk. On balance, the operational and financial strengths, material revenue momentum and clear plans to pass through fuel costs and protect margins outweigh the near‑term challenges and uncertainty.
Company Guidance
United provided a multi-part outlook anchored to the recent jet-fuel shock: Q1 results included EPS of $1.19 (within prior guidance of $1.00–$1.50, +31% YoY), consolidated revenue of $14.6B (+10.6% YoY), TRASM +6.9%, CASM-ex +5.9% YoY and a $340M higher fuel bill; loyalty revenue was +13% and premium revenue +13.6% on a 4.4% capacity increase (premium RASM +8.9%). For 2026 they guide Q2 EPS of $1–$2 (assuming ~ $4.30/gal all‑in fuel), full‑year EPS of $7–$11, and expect double‑digit RASM growth in Q2 and for the full year; they sold 23% of Q2 and 8% of Q3 capacity before the fuel spike, are removing ~5 points of planned capacity for the rest of 2026 (Q3/Q4 capacity now expected flat to +2% vs. prior plans, current summer sell‑in just over +4%) and have already pulled Tel Aviv/Dubai (~1.5 points). Management expects to recapture 40–50% of the fuel increase in Q2, 70–80% in Q3 and 85–100% by Q4 with a goal of 100% pass‑through and a target pretax margin of at least 10% (double‑digit) in 2027; they also highlighted balance‑sheet moves (>$3.1B debt paydown, $2B unsecured bond issuance) and $2.9B free cash flow in Q1.
Strong Earnings and Margins
Q1 GAAP/non‑GAAP EPS was $1.19, up 31% year‑over‑year and within guidance; pretax margin expanded to 3.4%, a 40 basis point improvement versus prior year.
Robust Yield and Revenue Momentum
Selling ticket yields accelerated through the quarter (up ~4% Jan–Feb, ~12% early March, ~18% late March) and most recently sell‑in yields for future travel are up ~20% year‑over‑year; Q2 and full‑year RASM expected to be double‑digit increases.
Premium and Business Demand Strength
Premium revenues increased 13.6% on a 4.4% rise in premium capacity; premium RASM was up 8.9% year‑over‑year; business revenues were up ~14% year‑over‑year with recent business ticketing and revenue trends accelerating (~25% uplift in recent weeks).
Loyalty and Ancillary Performance
Loyalty revenue grew 13% in the quarter with healthy acquisition and spend after MileagePlus changes; five successful price increases and ancillary fee increases (including baggage) are beginning to offset higher fuel costs.
Operational Excellence
Carried a record number of passengers in Q1; ranked first in on‑time departures among the 8 largest U.S. carriers; per‑seat cancellation rate averaged 44% lower than the next two largest U.S. carriers; highest first‑quarter on‑time Net Promoter Score since the pandemic.
Digital & Customer Improvements
Record day‑of app usage of 86%, improved bag tracking, live TSA wait times and embedded live maps in disruption communications have improved recovery and personalization.
Balance Sheet Strength and Cash Generation
Generated $2.9 billion in free cash flow in Q1, paid down over $3.1 billion of debt (including $2.0 billion secured note repayment and $400 million aircraft debt prepayment), and completed a $2 billion unsecured bond issuance that tightened credit spreads; management notes highest credit rating in almost 30 years and tripled cash balance earlier.
Fleet and Product Investments
Deliveries of four high‑premium Boeing 787‑9s in Q1 with up to 16 more expected in 2026 (33 planned over two years); announced 50 A321 Coastliners and a combined fleet plan for ~100 A321s with premium lie‑flat beds and Premium Plus seats, plus new onboard products (A321 XLR, CRJ450, Relax Row).
Clear Multi‑Quarter Fuel Recovery Plan
Management expects to recapture 40%–50% of the increased fuel cost in Q2, 70%–80% in Q3 and 85%–100% by Q4, and is targeting double‑digit pretax margins in 2027 assuming continued pass‑through progress.
Operator
Good morning, and welcome to United Airlines Holdings Earnings Conference Call for the First Quarter 2026. My name is Regina, and I will be your conference facilitator today. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed or rebroadcast without the company's permission. Your participation implies your consent to our recording of this call. If you do not agree with these terms, simply drop off the line. I will now turn the presentation over to your host for today's call, Kristina Edwards, Managing Director of Investor Relations. Please go ahead.
Kristina Munoz
Thanks, Regina. Good morning, everyone, and welcome to United's First Quarter 2026 Earnings Conference Call. Yesterday, we issued our earnings release, which is available on our website at ir.united.com. Information in yesterday's release and the remarks made during this conference call may contain forward-looking statements, which represent the company's current expectations and are based upon information currently available to the company. A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and 10-Q and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors. Unless otherwise noted, we will be discussing our financial metrics on a non-GAAP basis on this call, and historical operational metrics will exclude pandemic years. Please refer to the related definitions and reconcil...
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