United Airlines Beats Q2 Earnings, Raises 2026 Profit Outlook Despite Higher Fuel Costs

United Airlines (NASDAQ: UAL) reported stronger-than-expected second-quarter results, surpassing Wall Street estimates for both earnings and revenue while raising its full-year adjusted profit outlook. The airline also cautioned that higher oil prices are expected to significantly increase fuel costs in 2026, though it believes strong travel demand and pricing power will offset much of the impact.

United posted adjusted earnings of $1.99 per share, exceeding analysts’ expectations of $1.85 per share. Quarterly revenue reached $17.7 billion, ahead of the consensus estimate of $17.62 billion, while total operating revenue climbed 16% year over year.

The latest results highlight continued strength in U.S. air travel despite rising operating expenses and ongoing geopolitical uncertainty. The airline said demand for premium travel remains robust, helping drive higher fares and stronger margins. Premium cabin revenue increased 16% from a year earlier, while business travel, loyalty programs, and cargo operations also delivered double-digit growth.

Reflecting this momentum, United raised its full-year adjusted diluted earnings per share guidance to $9.00-$11.00. The company credited resilient consumer demand, improving ticket yields, and solid performance across its premium, cargo, and loyalty segments for the upgraded outlook.

Fuel costs, however, remain a major challenge. United said quarterly fuel expenses surged 84% from the previous year due to higher oil prices and warned that elevated energy costs could add nearly $6 billion to its annual fuel bill. Even so, management expects higher ticket prices and sustained demand to recover most of those additional costs by the fourth quarter.

The airline also continues investing in customer experience and operational improvements. United has expanded its Starlink in-flight internet rollout, with 450 aircraft already equipped and nearly 1,000 planes expected to feature the service by the end of the year.

Financially, United generated $1.6 billion in operating cash flow during the quarter and ended June with $19.6 billion in available liquidity. The carrier said strengthening its balance sheet and achieving an investment-grade credit rating remain key long-term priorities.