United Airlines Holdings (UAL) raised its full-year 2026 adjusted diluted earnings-per-share outlook to $9.00 to $11.00 after a second-quarter profit that exceeded expectations and sat near the top of its prior range.

The carrier posted diluted earnings of $2.46 a share and adjusted diluted earnings of $1.99 a share. Pre-tax earnings were $1.0 billion, with a 5.8% pre-tax margin. Adjusted pre-tax earnings were $843 million, with a 4.8% adjusted pre-tax margin.

Revenue growth accelerated. Total operating revenue rose 16.0% year-over-year to $17.7 billion, faster than the 10.6% increase in the first quarter. Total revenue per available seat mile rose 12.1%. Capacity was up 3.5% versus the second quarter of 2025.

Fuel was the offset. Aircraft fuel expense was $5.11 billion, up 84.1% year-over-year, after a $340 million fuel-expense increase in the first quarter. United recovered about half of the $2.3 billion second-quarter fuel increase. Average fuel price was $4.19 a gallon. CASM rose 15.2% and CASM-ex rose 6.1%.

Chief Executive Scott Kirby said United acted quickly when oil prices spiked in March, adjusting schedules while continuing customer investments. Based on oil prices as of July 14, United expects nearly $6 billion in added fuel expense for full-year 2026 compared with the expectation at the start of the year.

United expects to recover 80% to 90% of the third-quarter fuel increase and 100% by the fourth quarter. Yields were up 12% during the quarter.

Premium revenue was up 16% compared with the second quarter of 2025, Basic Economy revenue up 11%, loyalty revenue up 11%, cargo revenue up 23%, and contracted business revenue up 27%. Economy unit revenue was up 12%, which United described as two consecutive quarters of positive growth.

Passenger revenue was $16.10 billion, cargo revenue $527 million, and other operating revenue $1.05 billion. Net income was $805 million. Operating cash flow was $1.6 billion and free cash flow $322 million.

Starlink was installed on 450 mainline and United Express aircraft, with nearly 1,000 expected by year-end. United launched Starlink on its first widebody transatlantic flight and remains on track to bring the system to the whole fleet by the end of 2027. Customer satisfaction scores on flights with Starlink were twice as high as on other United flights.

The systemwide on-time departure rate was the best second quarter since 2021. Newark posted its best-ever second-quarter on-time departure results. United flew a record 640,717 customers on June 18.

During the quarter, United raised $3.7 billion in new liquidity in private bank transactions. Since the beginning of the second quarter, it prepaid about $1 billion of higher-cost debt. Ending available liquidity was $19.6 billion. Total debt, finance lease obligations and other financial liabilities were $26.5 billion. Trailing twelve-month net leverage was 2.2x. United is targeting an investment-grade rating in 2026.

Once fuel prices moderate, United expects to use the cash to pay down higher-cost debt and fund new aircraft deliveries this year and next. The first Airbus A321XLR is expected to enter domestic service this fall.