United Reports Record Q1 Revenue Despite US$340M Fuel Cost Surge

‍CHICAGO — United Airlines (UA) reported first-quarter 2026 pre-tax earnings of US$0.9 billion on April 21, delivering its highest-revenue first quarter in company history despite a US$340 million increase in fuel costs compared to the same period in 2025.

Diluted earnings per share came in at US$2.14, up 85% year-over-year, while adjusted diluted EPS of US$1.19 landed within the airline's initial guidance range of US$1.00 to US$1.50. Total operating revenue reached US$14.6 billion, up 10.6%, with total revenue per available seat mile (TRASM) up 6.9%.

Revenue breakdown, fuel and capacity adjustments

Premium revenue led growth at 14% year-over-year, followed by business revenue, also up 14%, and loyalty revenue up 13%. Basic Economy revenue grew 7%. 

Atlantic routes posted the strongest regional performance, with passenger revenue up 18.9%, while the Middle East, India, and Africa region grew 23.9% on a 19.6% capacity increase. 

United carried more passengers in a single first quarter than at any point in its history, with 42.5 million passengers and a consolidated load factor of 81.6%, up 2.4 points year-over-year.

Average fuel cost came in at US$2.78 per gallon, up 9.9% from Q1 2025, with total fuel expense of US$3.04 billion. In response to continued fuel price volatility, United announced a 5-point reduction in its planned capacity for the remainder of 2026, with Q3 and Q4 now expected to be flat to up approximately 2% year-over-year.

Operations, balance sheet

United achieved the best first-quarter on-time departure rate among the eight largest U.S. carriers, closing out March as the fourth consecutive month atop that ranking — the longest such streak in the airline's history. 

Per-seat cancellation rates averaged 44% lower than the next two largest U.S. carriers by available seat miles.

United paid down US$3.1 billion in debt during the quarter and returned to the unsecured bond market for the first time since 2019, raising US$2 billion across two issuances. Ending available liquidity stood at US$17.2 billion, with net leverage at 2.0x for the trailing twelve months.

Fleet and product

United confirmed the planned introduction of the A321neo Coastliner and CRJ450 in the second half of 2026 as part of its broader 250-aircraft delivery program through April 2028. Starlink Wi-Fi installations have been completed on 327 dual-class United Express aircraft, with fleet-wide rollout expected by the end of 2027. 

The airline also unveiled United Relax Row, a set of Economy seats that convert into a flat surface for long-haul international flights, a first for a North American carrier.