From The Motley Fool · Motley Fool Transcribing · · 2m
United Airlines Q3 2026 Earnings Report
United Airlines reports record Q3 revenue growth with Starlink driving customer loyalty shifts.
In brief
United Airlines reports record Q3 revenue growth with Starlink driving customer loyalty shifts. United Airlines achieved $17.9 billion Q3 revenue, a 17.4% year-over-year increase, with Starlink contributing to customer share shifts and premium revenue growth. Originally reported by The Motley Fool.
Q3 Revenue Growth
United Airlines reported record third-quarter revenue of $17.9 billion, a 17.4% year-over-year increase.
Adjusted EPS Performance
Adjusted diluted EPS reached $2.54, within the company's guidance despite a $1.8 billion increase in fuel expense.
Fuel Expense Impact
Fuel expense increased $1.8 billion year-over-year, with average price per gallon at $3.90 for the quarter.
Starlink Implementation
Starlink equipped aircraft cover 50% of departures, with 61% availability by end of 2026 and fleet-wide by end of 2027.
Customer Loyalty Shifts
Starlink drove customers who switched airlines to choose United solely for its Wi-Fi service.
Premium Revenue Growth
Premium revenue increased 17% year-over-year, supported by higher capacity and business load factor.
Contracted Business Growth
Contracted business revenue grew 26% year-over-year, driven by resilient demand across industries.
Economy Cabin Performance
Basic economy revenue increased 16% year-over-year with unit revenue rising 17% for three consecutive quarters.
Cargo Revenue Growth
Cargo revenue reached $529 million, a 22.9% year-over-year increase with higher yields and record volume.
Loyalty Program Growth
Loyalty revenue reached $1.1 billion, up 12.9% year-over-year with co-brand portfolio spend increasing 13%.
Co-brand Account Growth
United on pace to generate 1 million new co-brand accounts in 2026, a material increase from 2025.
Liquidity Position
Ending liquidity reached $17.7 billion, including $14.7 billion in cash and short-term investments.
Credit Facility Expansion
Revolving credit facility upsized from $3 billion to $5 billion and extended to 2031, saving $70 million annually.
Debt Repayment
Management paid down approximately $1 billion of debt during the quarter as part of investment-grade strategy.
Q4 EPS Guidance
Q4 EPS projected between $0.50 to $1.50 based on assumed all-in fuel price of $4.80 per gallon.
Q4 Revenue Guidance
Q4 revenue expected to increase more than 20% year-over-year, accelerating from third-quarter growth rates.
At a glance
United Airlines achieved $17.9 billion Q3 revenue, a 17.4% year-over-year increase, with Starlink contributing to customer share shifts and premium revenue growth.
