United Airlines Q3 Adjusted EPS Misses on Surging Fuel Costs but Q4 Revenue Growth Seen Above 20%

United Airlines reported third-quarter 2026 adjusted earnings per share of $2.54, falling short of analyst estimates ranging from $2.57 to $2.61, as a 60.3% year-over-year surge in average jet fuel prices to $3.90 per gallon added $1.8 billion to fuel expense compared to Q3 2025. Revenue of $17.88 billion came in essentially flat with the consensus estimate of roughly $17.89 billion to $17.91 billion, rising 17.4% from a year earlier, while adjusted net income of $833 million and adjusted operating income of $1.23 billion both missed expectations.

All major revenue segments posted double-digit gains. Premium cabin revenue grew 17% year over year, matching loyalty program growth, while basic economy rose 16%, cargo climbed 23%, and contracted business was the standout at plus 26%. Total revenue per available seat mile came in at 20.19 cents, up 15.9% year over year, though cost per available seat mile excluding fuel rose 7.8% to 13.09 cents, illustrating the margin squeeze. Capacity expanded only 1.3%, and the consolidated load factor slipped 0.5 percentage points to 83.9%.

On a GAAP basis, EPS was $3.14, up 8.3% year over year, reflecting $294 million in gains from aircraft sale-leaseback transactions. The airline also noted it expanded its revolving credit facility on October 16, raising available liquidity to $5 billion.

For the fourth quarter, United guided for operating revenue growth exceeding 20% year over year, a bullish outlook underpinned by its largest-ever international network expansion, which includes 10 new destinations. The company highlighted Starlink in-flight Wi-Fi, now installed on more than 640 aircraft, as a customer acquisition driver, and announced the launch of live professional and college football on Starlink-enabled seatback screens.