United Reports Record Q3 Revenue as Fuel Costs Weigh on Earnings

CHICAGO — United Airlines (UA) reported record quarterly revenue of US$17.9bn, up 17.4% year over year, but a US$1.8bn increase in fuel expense pressured third-quarter earnings.

For the quarter ended September 30, 2026, pretax earnings were US$1.3bn, with a 7.3% margin. Adjusted pretax earnings were US$1.1bn, with a 6.2% margin. Diluted earnings per share were US$3.14, or US$2.54 on an adjusted basis.

The adjusted result narrowly missed analysts' US$2.57 estimate, Reuters reported, but remained within United's July guidance of US$2.50 to US$3.50.

Revenue Outpaces Capacity Growth

Year over year, capacity rose 1.3%, while total revenue per available seat mile increased 15.9%. Revenue therefore grew mainly through higher revenue per unit of capacity. Operating cost per available seat mile rose 17.3%. United's adjusted measure, excluding fuel, profit sharing, special charges and third-party business expenses, increased 7.8%.

Compared with Q3 2025, United reported premium revenue growth of 17%, Basic Economy growth of 16%, loyalty growth of 17% and cargo growth of 23%. Contracted business revenue rose 26%.

Fuel Assumptions Shape Q4 Outlook

United's October 20 investor update forecasts adjusted diluted earnings of US$0.50 to US$1.50 per share for the fourth quarter. Reuters put the LSEG analyst consensus at US$1.76.

The airline assumes an average fuel price of about US$4.80 per gallon, based on the October 16 Gulf Coast forward curve. United said consensus estimates assumed roughly US$4.35. It put the US$0.45 gap at approximately US$1 per share in quarterly earnings, illustrating how different fuel assumptions affect the comparison with Wall Street's forecast.

United expects unit revenue growth to accelerate in Q4 and growth in unit costs excluding fuel to slow from Q3.

Starlink and Airport Investment

United said Starlink was installed on more than 640 aircraft. The rollout follows its first regional-aircraft installation in 2025.

For passengers, availability still depends on the assigned aircraft. United's new Starlink tracker checks flights within three days of departure, with aircraft assignments subject to change. The airline plans to complete installations by the end of 2027.

In September, United introduced live professional and college football on Starlink-enabled seatback screens on domestic flights. Starlink Wi-Fi is free for MileagePlus members in every cabin.

After the quarter, United previewed Houston's Terminal B North Concourse on October 21, with public opening scheduled for October 22. The George Bush Intercontinental Airport (IAH) facility has 22 mainline gates and an 800-seat United Club, which the airline describes as the largest airline club in the Americas.