United Airlines Posts Record Revenue And Raises Profit Outlook, But Delta Air Lines Was More Profitable
United Airlines reported better-than-expected second-quarter results and raised its full-year earnings guidance, even as sharply higher fuel prices erased much of the benefit from record revenue.
United Airlines has reported second-quarter operating revenue of $17.7 billion, a 16% increase over the same period last year.
The airline earned $805 million on a GAAP basis, or $2.46 per diluted share. Excluding special items, United reported adjusted net income of $649 million and adjusted earnings of $1.99 per share, beating Wall Street expectations.
United also raised its full-year adjusted earnings guidance to between $9 and $11 per share. The previous range was $7 to $11, meaning the airline now expects results to land toward the stronger end of its original outlook.
That confidence comes despite a tremendous fuel bill this last quarter.
United spent $5.1 billion on aircraft fuel during Q2, an increase of 84% over last year. Fuel expense rose by approximately $2.3 billion year-over-year, while United estimates that its expected 2026 fuel bill has increased by nearly $6 billion compared to its assumptions at the start of the year.
CEO Scott Kirby said:
“The United Next strategy continues to deliver durable earnings and margin expansion despite a volatile operating environment.”
United says it recovered approximately half of the second-quarter fuel increase through higher revenue. It expects to recover 80% to 90% during the third quarter and fully offset the increase by the fourth quarter.
Strong Revenue Across The Business
United’s revenue growth was not confined to one portion of the aircraft.
Premium-cabin revenue increased 16% year-over-year, while Basic Economy revenue rose 11%. Corporate and other contracted business revenue increased 27%, MileagePlus revenue rose 11%, and cargo revenue grew nearly 23%.
Total revenue per available seat mile increased 12.1%, even as capacity grew 3.5%.
That is an impressive combination…United carried more passengers, charged more for the capacity it offered, and saw growth across premium, economy, corporate travel, loyalty, and cargo.
Starlink also continues to move quickly through the fleet. United says approximately 450 aircraft are now equipped, with nearly 1,000 expected to have the high-speed internet system by the end of the year.
Operationally, United reported its best second-quarter on-time departure rate since 2021. Newark, which has historically been the weak point in United’s network, recorded its best-ever second-quarter on-time departure performance.
Did United Beat Delta This Quarter?
United and Delta each reported approximately $17.7 billion in adjusted operating revenue for the second quarter, making the comparison particularly interesting.
United reported adjusted earnings of $1.99 per share, compared to $1.56 at Delta. On that widely quoted metric, United came out ahead.
But United did not produce more total profit.
Delta generated $1.4 billion in adjusted pre-tax income, compared to $843 million at United. Delta’s adjusted pre-tax margin was 7.7%, while United’s was 4.8%.
The difference between the per-share and total-profit comparisons is largely explained by the number of shares each company has outstanding. United divides its earnings among roughly half as many shares as Delta, making its earnings-per-share figure appear higher even though the company earned less money overall.
So the fairest conclusion is that United beat Delta on adjusted EPS, while Delta remained substantially more profitable on the same amount of adjusted revenue.
United also faced a larger fuel burden. It spent $5.1 billion on fuel during the quarter, compared to $4.4 billion at Delta. That helps explain why United converted identical adjusted revenue into less profit.
A Strong Result, But Fuel Remains The Story
United expects third-quarter adjusted earnings of $2.50 to $3.50 per share. The airline says that figure would have been approximately $1.12 higher without the renewed fuel-price increase seen during the first half of July.
That neatly illustrates the problem.
United is producing record revenue and enjoying remarkable pricing power, but fuel is consuming a large portion of the benefit. The airline has managed to raise fares without materially weakening demand so far, but there is always a limit to what customers will absorb.
United also indicated that fourth-quarter schedules currently on sale will be reduced. That capacity discipline should help preserve pricing, though it may also mean fewer inexpensive seats for travelers.
CONCLUSION
United produced record second-quarter revenue, exceeded Wall Street’s earnings expectations, and raised the lower end of its full-year profit guidance despite an enormous increase in fuel expense.
United also posted higher adjusted earnings per share than Delta on essentially identical adjusted revenue. But Delta converted that revenue into far more total profit, with an adjusted pre-tax margin nearly three points higher.
Both airlines remain in a commanding position in the U.S. airlines industry. United’s quarter was strong, but Delta still won the more meaningful profitability comparison.
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