United Airlines Holdings, Inc. (UAL Quick QuoteUAL - Free Report) reported third-quarter 2026 adjusted earnings of $2.54 per share, down 8.6% year over year and below the Zacks Consensus Estimate of $2.60 by 2.3%. Higher fuel expenses weighed on profitability despite strong revenue growth.

Operating revenues rose 17.4% year over year to $17.88 billion but missed the consensus mark of $17.91 billion by 0.2%. A 15.9% increase in total revenue per available seat mile or TRASM, supported the top line, driven by strength across premium, loyalty and contracted business revenues.

UAL Benefits From Broad-Based Passenger Revenue Growth

Passenger revenues increased 17.6% year over year to $16.24 billion. Domestic passenger revenues advanced 19.9% year over year, while international passenger revenues rose 14.3%. Latin America revenues rose 24.2% year over year, Pacific revenues climbed 16.5% and Atlantic revenues improved 10.1% year over year.

Within the Atlantic region, Europe revenues increased 13.3% year over year, partly offset by a 17.3% decline in the Middle East, India and Africa region. Cargo revenues jumped 22.9% year over year to $529 million, while other operating revenues grew 12.9% to $1.11 billion.

Premium revenues rose 17% year over year, while Basic Economy and loyalty revenues increased 16% and 17%, respectively. Contracted business revenues advanced 26% year over year, reflecting resilient close-in demand. Economy cabin unit revenues improved 17% year over year.

United Airlines Sees Higher Yields Despite Softer Traffic

Consolidated passenger revenue per available seat mile increased 16.1% year over year, while passenger yield climbed 16.8%. Domestic PRASM advanced 14.5% year over year, while international PRASM grew 17.4%, reflecting strong revenue performance across the network.

Traffic, measured in revenue passenger miles, increased 0.7% year over year, while capacity expanded 1.3%. As capacity growth outpaced traffic, the consolidated load factor declined 0.5 percentage points to 83.9%.

United Airlines transported a record 49.5 million passengers, up 2.4% year over year from the prior-year period. Domestic load factor declined 0.9 points to 84.4%, while international load factor remained nearly unchanged at 83.2%.

UAL Faces Rising Fuel and Operating Expenses

Operating expenses increased 18.8% year over year to $16.43 billion, outpacing revenue growth. Aircraft fuel expenses surged 61.6% year over year to $4.84 billion as the average fuel price increased 60.3% to $3.90 per gallon. Fuel consumption rose 0.8% year over year.

Cost per available seat mile increased 17.3% year over year to 18.56 cents. CASM-ex, which excludes fuel, profit sharing, special items and third-party business expenses, rose 7.8% year over year to 13.09 cents.

Salaries and related costs increased 8.9% year over year to $4.96 billion. Distribution expenses climbed 13.9% year over year, while landing fees and other rent rose 4.4%. Aircraft maintenance expenses increased 3.5% year over year.

United Airlines Reports Lower Adjusted Profitability

Adjusted operating income declined 6.9% year over year to $1.23 billion, while the adjusted operating margin contracted 1.8 percentage points to 6.9%. Adjusted pre-tax income fell 8.7% to $1.11 billion, with the adjusted pre-tax margin narrowing to 6.2% from 8%.

Adjusted net income decreased 8.4% year over year to $833 million. On a reported basis, net income increased 8.5% year over year to $1.03 billion, while earnings rose to $3.14 per share from $2.90.

The difference between reported and adjusted results reflected special credits, primarily associated with gains from aircraft sale-leaseback transactions.

UAL Sees Cash Flow Pressure, Maintains Liquidity

Operating cash flow totaled $465 million during the third quarter compared with $1.22 billion a year ago. Free cash flow was negative $1.84 billion compared with negative $153 million in the prior-year period.

Adjusted capital expenditures totaled $2.19 billion, reflecting continued fleet and infrastructure investments. Available liquidity ended the quarter at $17.7 billion.

Cash and cash equivalents totaled $6.65 billion, while short-term investments were $8.01 billion. Debt, finance lease obligations and other financial liabilities were $26.40 billion. Trailing-12-month net leverage stood at 2.4 times.

United Airlines Expects Revenue Momentum in Q4

United Airlines expects fourth-quarter 2026 adjusted earnings between 50 cents and $1.50 per share (Zacks Consensus Estimate of $1.75 lies above the guided range), assuming an all-in average fuel price of approximately $4.80 per gallon.

Management expects fourth-quarter revenue growth to accelerate from the third quarter, exceeding 20% year over year. Unit revenue growth is also expected to accelerate, while unit cost growth excluding fuel is projected to moderate.

Adjusted capital expenditures are forecast at approximately $7.5 billion for 2026.

United Airlines' fleet plan calls for 1,166 mainline aircraft and 441 regional aircraft by year-end. The airline has installed Starlink on more than 640 aircraft and expects fleet-wide availability by the end of 2027.

Currently, UAL has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performance of Other Transportation Companies

Delta Air Lines (DAL Quick QuoteDAL - Free Report) reported third-quarter 2026 earnings (excluding 57 cents from non-recurring items) of $1.72 per share, missing the Zacks Consensus Estimate of $1.80 by 4.44%. Earnings increased year over year despite sharply higher fuel costs and rising non-fuel expenses.

Adjusted revenues climbed 16% year over year to $17.59 billion but missed the consensus estimate of $17.74 billion by 0.9%. Broad demand strength and healthy yields lifted adjusted total revenue per available seat mile, or TRASM, 15%, while premium and diversified revenue streams continued to expand.

J.B. Hunt Transport Services, Inc. (JBHT Quick QuoteJBHT - Free Report) reported third-quarter 2026 earnings of $1.82 per share, up 3.4% from $1.76 a year ago. The figure beat the Zacks Consensus Estimate of $1.81 by 0.6%.

Operating revenues climbed 20.4% year over year to $3.68 billion and surpassed the consensus mark of $3.56 billion by 3.2%. Stronger pricing, an 8% increase in Intermodal loads and higher brokerage volumes supported growth. However, elevated driver-related expenses, fuel costs and insurance claims pressured profitability.

Alaska Air Group, Inc. (ALK Quick QuoteALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company had reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.

Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion by 0.1%. Revenue per available seat mile, or RASM, rose 11.7%, supported by strong yields, premium demand and loyalty revenues.