United's Fuel Bill Rose 61.6% To $4.8 Billion, Trimming Adjusted Profit On Record Sales
Adjusted earnings per share fell to $2.54 from $2.78, and the airline guided to $0.50 to $1.50 for the fourth quarter.
United Airlines' adjusted earnings per share fell to $2.54 in the third quarter from $2.78 a year earlier, even as revenue set a record of $17.9 billion, according to an 8-K filed Tuesday. Fuel expense rose 61.6% to $4.8 billion, and the average fuel price climbed to $3.90 per gallon from $2.43.
What the earnings release says
Revenue rose 17.4% from the third quarter of 2025. Revenue per available seat mile, a measure of sales per seat flown a mile, rose 15.9%, while capacity grew only 1.3%.
Diluted earnings per share under standard accounting rose to $3.14 from $2.90. Net special credits, mostly gains on aircraft sale-leaseback deals, lifted that figure: operating special credits were $215 million before tax, and the company's adjusted measure strips them out. Net income was $1.0 billion, against adjusted net income of $833 million.
Adjusted pre-tax margin, the share of sales kept as profit before taxes and one-time items, narrowed to 6.2% from 8.0%. Adjusted pre-tax earnings were $1.1 billion, down 8.7% from $1.215 billion a year earlier.
CEO Scott Kirby said in the release: "Our employees met the challenge of our ever-changing environment and our results prove the resilience of focusing on building a brand-loyal airline for customers."
The fourth-quarter outlook
In its investor update, United guided to fourth-quarter adjusted earnings of $0.50 to $1.50 per share. That assumes an average fuel price of about $4.80 per gallon, based on the Gulf Coast jet forward curve as of October 16.
The company says each $0.01 change in fuel price moves quarterly earnings by about 2.5 cents per share. It also says consensus expectations assume about $4.35 a gallon, roughly $0.45 lower, which it puts at about $1.00 of earnings per share.
United expects unit revenue growth to accelerate from the third quarter, with total revenue growth above 20% year over year. It expects growth in unit costs excluding fuel to step down. Full-year adjusted capital spending is about $7.5 billion.
Balance sheet and cash
Ending available liquidity, which includes cash, short-term investments and undrawn credit lines, was $17.7 billion. On October 16 United expanded its revolving credit facility, raising available liquidity under it to $5 billion from $3 billion.
Total debt, finance lease obligations and other financial liabilities were $26.4 billion at quarter end. Net leverage stood at 2.4 times, up from 2.1. Free cash flow was negative $1.8 billion for the quarter, as the company's own adjusted measure shows, against negative $153 million a year earlier.
In Tuesday trading, UAL shares rose 2.63% to $98.11, a move that came before the filing.
What to watch
United holds its earnings call Wednesday at 10:30 a.m. ET, where management will discuss fourth-quarter targets and the outlook beyond.
The fourth-quarter range rests on a fuel price roughly $0.45 above what the company says consensus assumes.
Sources
- 8-K Filing — United Airlines Holdings, Inc. (UAL) — SEC EDGAR
- Exhibit ual_erx09302026xex991.htm — United Airlines Holdings, Inc. 8-K exhibit — SEC EDGAR
- Exhibit ual_erx09302026xex992.htm — United Airlines Holdings, Inc. 8-K exhibit — SEC EDGAR
- United (UAL) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures — Yahoo Finance
