United is reporting better-than-expected second-quarter earnings, saying strong travel demand and customer service investments have propelled revenue growth that helped offset a sharp increase in fuel costs.
The airline said Wednesday it had earned $805 million, or $2.46 per share, during the second quarter on $17.7 billion in revenue, a 16% increase from a year earlier. Revenue and profit came in above Wall Street analysts' expectations.
United said its fuel bill increased by $2.3 billion, or 84%, compared with the second quarter of 2025 as oil prices surged earlier this year. The company said it recovered about half of those higher costs through increased fares during the quarter and expects to recover nearly all of them by the end of the year if fuel prices remain at current levels.
"Our results show why we have been investing in customer improvements throughout every cabin," Chief Executive Officer Scott Kirby said. "United is built to thrive in every environment, and when oil prices spiked in March, we quickly and decisively acted to adjust our schedules, while simultaneously doubling down on our customer investments.”
Demand remained strong across the airline's business in the second quarter. Premium cabin revenue rose 16% from a year ago, while revenue from basic economy fares and the MileagePlus loyalty program each increased 11%. Cargo revenue jumped 23%, and business travel revenue increased 27%.
United also continued investing in customer amenities, expanding free Starlink satellite Wi-Fi to more than 450 aircraft. The company expects to equip its entire fleet with the high-speed internet service by the end of 2027. It also introduced its first Airbus A321XLR aircraft, which is expected to begin domestic service this fall before flying international routes next year.
Operationally, United said it had one of its strongest quarters in recent years. The airline posted its best on-time departure performance since 2021 and its lowest seat cancellation rate, excluding the pandemic years. Newark Liberty International Airport, one of United's largest hubs, recorded its best-ever on-time performance for a second quarter.
In June, United flew the 10 highest-volume days in the airline's history, including a company record of 640,717 customers on a single day (June 18).
Looking ahead, United warned that higher fuel prices remain a challenge. Based on oil prices as of mid-July, the airline expects to spend nearly $6 billion more on fuel in 2026 than it anticipated at the beginning of the year.
To strengthen its financial position against geopolitical uncertainty and potential future spikes in oil prices, United raised $3.7 billion in new financing during the quarter and used part of its cash to repay approximately $1 billion in higher-cost debt.
Once fuel prices moderate, United said it expects to also use this cash to further pay down higher-cost debt and fund new aircraft deliveries this year and next.
