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# United's Third-Quarter Profit Rose, But Adjusted Operating Income Fell To $1.231 Billion
- URL: https://www.bullished.co/uniteds-third-quarter-profit-rose-but-adjusted-operating-income-fell-to-1-231-billion-d4fbc10a/
- Published: 2026-10-21T21:31:57.000Z
- Updated: 2026-10-21T21:31:57.000Z
- Description: Aircraft sale-leaseback gains lifted reported earnings while fuel costs cut into core results and free cash flow turned negative.
- Author: Matteo Parrino
- Tags: Earnings, UAL, Industry: Industrials

[United Airlines](https://www.bullished.co/tag/ual/)' third-quarter net income rose to [$1.03 billion](https://www.sec.gov/Archives/edgar/data/0000100517/000010051726000186/ual-20260930.htm?ref=bullished.co) from $949 million a year earlier, but its adjusted operating income fell to $1.231 billion from $1.322 billion. The 10-Q shows a large credit from selling and leasing back aircraft helped the reported number.

## The finding: reported profit up, core earnings down

Operating special items were a $215 million credit in the quarter and a $749 million credit for the first nine months, according to the 10-Q. Aircraft sale-leaseback gains were $294 million in the quarter and $1.1 billion for nine months, against $336 million in the first nine months of 2025.

The company's [earnings release](https://www.sec.gov/Archives/edgar/data/0000100517/000010051726000184/ual%5Ferx09302026xex991.htm?ref=bullished.co) shows standard operating income rose to $1.446 billion from $1.395 billion. Adjusted operating income, which strips out special items, fell 6.9%. Adjusted diluted earnings per share were $2.54 versus $2.78, while the standard figure was $3.14 versus $2.90.

Revenue was not the problem. Total operating revenue was $17.875 billion, [up 17.4%](https://finance.yahoo.com/markets/stocks/articles/compared-estimates-united-ual-q3-203001081.html?ref=bullished.co). Aircraft fuel expense rose 61.6% to $4.843 billion, with the average price at $3.90 a gallon against $2.43 a year earlier.

## The catch: cash went the other way

Third-quarter free cash flow was negative $1.843 billion versus negative $153 million a year earlier, the release said. Capital spending was $2.139 billion against $1.464 billion.

Nine-month operating cash flow fell to $6.874 billion from $7.145 billion. The 10-Q attributes that mainly to the one-time flight attendant ratification payment, which totaled $740 million and was paid on September 15.

Aircraft rent for nine months was $311 million versus $172 million, which the filing ties to new leased aircraft.

## Liquidity and what to watch

On October 16, United amended its revolving credit facility, lifting commitments to $5.0 billion from $3.0 billion and extending maturity to October 16, 2031\. No borrowings were outstanding at the filing date. The company had $14.7 billion in unrestricted cash and short-term investments at September 30.

The company bought no shares in the third quarter, and $755 million remained under its buyback authorization as of October 15\. CNBC [reported](https://www.cnbc.com/2026/10/20/united-airlines-ual-3q-2026-earnings.html?ref=bullished.co) fourth-quarter fuel guidance of $4.80 a gallon.

Fuel at [$3.90 a gallon](https://www.cnbc.com/2026/10/20/united-airlines-ual-3q-2026-earnings.html?ref=bullished.co) this quarter is the baseline against which the reported $4.80 fourth-quarter guidance will be measured.

### Sources

- [10-Q Filing — United Airlines (UAL)](https://www.sec.gov/Archives/edgar/data/0000100517/000010051726000186/ual-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — United Airlines (UAL), Q2 FY2026 filed 2026-07-16 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000100517/000010051726000139/ual-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, ual\_erx09302026xex991.htm) — United Airlines, filed 2026-10-20](https://www.sec.gov/Archives/edgar/data/0000100517/000010051726000184/ual%5Ferx09302026xex991.htm?ref=bullished.co) — SEC EDGAR
- [United Airlines (UAL) 3Q 2026 earnings](https://www.cnbc.com/2026/10/20/united-airlines-ual-3q-2026-earnings.html?ref=bullished.co) — CNBC
- [United Airlines Revenue Climbs as Higher Fares Offset Rising Fuel Costs - WSJ](https://www.wsj.com/business/earnings/united-airlines-revenue-rises-as-fare-hikes-offset-fuel-costs-196ddf48?ref=bullished.co) — The Wall Street Journal
- [Compared to Estimates, United (UAL) Q3 Earnings: A Look at Key Metrics](https://finance.yahoo.com/markets/stocks/articles/compared-estimates-united-ual-q3-203001081.html?ref=bullished.co) — Yahoo Finance
- [United Airlines (UAL) Lags Q3 Earnings and Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/united-airlines-ual-lags-q3-201002435.html?ref=bullished.co) — Yahoo Finance
- [United Delivers Record 17% Revenue Growth in Q3, and Expects Record Q4 Revenue Growth, Underpinned by Accelerating Customer Investments](https://finance.yahoo.com/markets/stocks/articles/united-delivers-record-17-revenue-200000175.html?ref=bullished.co) — Yahoo Finance

### More on United Airlines Holdings

- [United's Kirby: Starlink 'Probably Isn't Enough On Its Own' To Hit 2027 Margin Goal](https://www.bullished.co/uniteds-kirby-starlink-probably-isnt-enough-on-its-own-to-hit-2027-margin-goal-d45a324d/)
- [United's Fuel Bill Rose 61.6% To $4.8 Billion, Trimming Adjusted Profit On Record Sales](https://www.bullished.co/uniteds-fuel-bill-rose-61-6-to-4-8-billion-trimming-adjusted-profit-on-record-sales-3431b564/)

[All United Airlines Holdings (UAL) coverage →](https://www.bullished.co/tag/ual/)