Overview

• US airline's Q2 revenue rose 16% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company raised full-year 2026 adjusted EPS guidance despite higher fuel costs

Outlook

• United raises full-year 2026 adj EPS guidance to $9.00-$11.00

• Company expects to recover 80%-90% of higher fuel costs in Q3, 100% by Q4

• United targets investment-grade credit rating in 2026

Result Drivers

• YIELD AND DEMAND - Yields rose 12% and demand remained strong, with contracted business revenue up 27% in the quarter

• CUSTOMER INVESTMENTS - Investments in customer experience, including Starlink Wi-Fi and new cabin products, supported revenue growth and higher customer satisfaction

• FUEL COST RECOVERY - Despite an 84% yr/yr increase in fuel expense, United recovered about half of the increase in Q2 and expects to recover more in coming quarters

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Slight Beat*	$17.70 bln	$17.62 bln (17 Analysts)
Q2 Adjusted EPS	Beat	$1.99	$1.88 (20 Analysts)
Q2 EPS		$2.46
Q2 Net Income		$805 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy"

• Wall Street's median 12-month price target for United Airlines Holdings Inc is $158.75, about 31.9% above its July 14 closing price of $120.35

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

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