United Airlines Holdings reported second-quarter revenue of $17.67 billion on Wednesday, exceeding analyst expectations of $17.62 billion. The airline's adjusted earnings were $1.99 per share, surpassing estimates of $1.87 per share, according to Benzinga Pro. This marks a 16% increase in total operating revenue year-over-year.
Revenue Breakdown
Revenue from premium cabin services rose by 16%, while basic economy and loyalty programs increased by 11% each. Cargo revenue saw a notable 23% jump. Capacity was up 3.5% year-over-year, with total revenue per available seat mile (TRASM) increasing by 12.1%. However, the cost per available seat mile (CASM) also rose by 15.2% compared to the previous year.
United Airlines ended the quarter with $19.6 billion in total liquidity and $26.5 billion in total debt and finance lease obligations. CEO Scott Kirby stated,
Our results show why we have been investing in customer improvements throughout every cabin and winning brand-loyal customers.
He added that the company had to adjust its schedules in response to rising oil prices in March while continuing to invest in customer service.
Future Outlook
The company anticipates nearly $6 billion in additional fuel expenses for the full year of 2026, compared to earlier projections made at the start of the year. United executives are scheduled to discuss the quarter further on an earnings call at 10:30 a.m. ET on Thursday.
United Airlines shares fell 3.55% in after-hours trading, reaching $116.67. The increase in fuel costs is likely to pressure profit margins, affecting airline stocks and potentially leading to a reassessment of operational strategies across the sector. Investors will watch for insights from the upcoming earnings call regarding future cost management strategies.