stockrowWhat it does
United Airlines Holdings is a holding company whose wholly owned subsidiary, United Airlines, operates the airline business. United transports passengers and cargo in North America and between North America and destinations in Asia, Europe, Africa, the Pacific, the Middle East and Latin America. It operates across six continents through hubs at Chicago O’Hare, Denver, Houston, Los Angeles, Newark, San Francisco, Washington Dulles and Guam.
Its hub-and-spoke system brings passengers into major airports and connects them onward to other destinations. This lets United offer connecting itineraries and add a destination from multiple cities without flying every city pair directly. Regional carriers operate flights under the United Express brand, connecting smaller cities to United’s hubs; United determines their schedules, pricing and revenue management.
The company also sells travel-related products and services. These include fare options from Basic Economy to Polaris, airport-club memberships, seat upgrades and other ancillary products. MileagePlus lets members earn and redeem miles for flights and non-flight awards. United also provides air-cargo transportation, primarily to commercial businesses, freight forwarders, logistics firms and postal services.
United was founded in 1968 and is headquartered in Chicago. J. Scott Kirby is chief executive officer. It had 113,200 employees in FY2025.
How it makes money
United earns most of its revenue by selling passenger transportation. Fares depend on the route, timing, cabin, demand and product selected. It sells tickets through united.com, its mobile app, NDC-enabled channels, travel agencies, online travel agencies and other intermediaries. It also sells ancillary products through these channels.
MileagePlus is another revenue source. Members earn miles by flying United, United Express and participating airlines, or by buying goods and services from non-airline partners. United has a co-brand agreement with JPMorgan Chase Bank under which U.S. MileagePlus members can earn miles through a Chase-issued card; the arrangement also includes joint marketing and access to United’s customer database. Mileage revenue from non-airline partners, including co-brand card spending, helped increase other operating revenue in 2025.
Cargo revenue comes from space on scheduled passenger flights, interline and charter flights, and ground-trucking arrangements. United also reports third-party business revenue from maintenance services, non-travel frequent-flyer redemptions, its flight academy and ground handling.
Latest available totals: fuel operating expenses were $8.0 billion, and Q3 2026 fuel operating expenses were $4.8 billion. In Q3 2026, management said fuel expense increased by $1.8 billion year over year and that it recaptured 72% of that increase through revenue, with a lag from rapid fuel-price movements. Management also said contracted corporate business revenue increased 26.0% from the prior year.
Customers and how it sells
United serves leisure travelers, business travelers, cargo customers and MileagePlus members. Its domestic hubs are in large business and population centers, which contribute origin-and-destination traffic as well as connecting traffic. Internationally, its network reaches destinations across six continents.
The company carried 49,500,000 customers in Q3 2026. Management said on the call that contracted corporate business revenue increased 26.0% from the prior year, while corporate traffic remained 4–5 load-factor points below its 2019 contribution to United. Management also said Asia cargo demand was strong.
United sells directly through its website and mobile app, as well as through travel agencies, online travel agencies and other intermediaries. The company is implementing New Distribution Capability and investing in direct channels, which it says can present richer content and more relevant offers while reducing ticket-distribution costs. Legacy distribution technology remains part of its sales mix and can involve higher costs and more limited functionality.
MileagePlus extends United’s customer relationships beyond flights. Members can earn miles through airline and non-airline partners, including credit-card issuers, retailers, hotels and car-rental companies, and can redeem miles for travel, upgrades and non-travel awards.
Suppliers and costs
United sources substantially all of its aircraft and many related parts from Boeing or Airbus. It also depends on a limited number of engine and aircraft-parts suppliers. Delays in aircraft, engines, parts, certification or supplier support can disrupt fleet plans, schedules and costs. Management said on the call that the MAX-10 is part of its upgauging strategy and that it expects to take its first delivery next year.
Fuel is a major operating cost. In 2025, fuel represented 21% of total operating expense. The company buys fuel under purchase contracts indexed mainly to market benchmarks and does not currently use financial transactions to hedge expected fuel consumption. It says fuel availability and prices can materially affect results.
Other substantial costs include salaries and benefits, aircraft maintenance, airport landing fees and rent, regional capacity-purchase payments, distribution, aircraft rent, catering, ground handling and technology. Under regional capacity-purchase agreements, United pays contracted carrier fees, bears fuel costs and generally bears landing fees and other pass-through costs. Management said on the call that airport costs at its hub airports are 60.0% higher than before the pandemic.
- Revenue$59.1B
- Cost of revenue−$17.4B
- Selling, general and administrative−$19.8B
- Other operating costs−$17.2B
- Operating income$4.7B
Competitive position
United competes with other U.S. airlines, foreign airlines and, to a lesser extent, other forms of transportation. Competition centers on routes, fares, schedules, frequency, cabin products, customer service and frequent-flyer programs. On domestic routes, lower-cost airlines can offer lower fares, and United says it may need to match competitors’ discounted fares. International competition includes foreign carriers, alliances, joint businesses and airlines operating under fifth-freedom rights.
Management said on the call that United has been gaining share at its hubs. It said United first captured 50.0% of Chicago-based passenger revenue in Q2 2026. Management also said Starlink-equipped flights are influencing some customers’ airline choice. United had 640 Starlink-equipped aircraft in Q3 2026.
United’s network, hub access, direct distribution, MileagePlus program, regional network, Star Alliance membership and joint business arrangements all support its ability to offer flight combinations and loyalty benefits. Its Star Alliance members served more than 1,150 airports in more than 190 countries and territories in 2025.
Our reading: United’s hub network, alliance links and loyalty program are established competitive tools because they connect domestic feed, international destinations and mileage benefits across multiple carriers. Their value depends on maintaining schedules, airport access and partner relationships. Our reading: Starlink is a nearer-term product differentiation, but management expects high-speed Wi-Fi eventually to become an industry standard.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Delta Air Lines, Inc. | U.S. airline market and fuel-cost environment | High |
| American Airlines Group Inc. | U.S. airline market and fuel-cost environment | High |
| Ryanair Holdings PLC | Commercial aircraft fleet market | Low |
Growth opportunities
United’s United Next plan is intended to expand its network, fleet capacity and product offering. The company expects to take delivery of over 630 new narrowbody and widebody aircraft by the end of 2034. It says newer aircraft delivered to date have increased gauge, scale and connectivity and improved fuel efficiency. Management said on the call that it expects to take about two widebody aircraft a month and over 100 narrowbody aircraft in 2027.
The plan also includes new and retrofit aircraft interiors, larger overhead bins, seatback screens, Bluetooth connectivity, technology changes and network expansion. United is installing Starlink across its mainline and regional fleet. Management said on the call that about half of United departures were on Starlink-equipped aircraft, that it expects 61% of departures by the end of 2026 and 87% by June 1, 2027, and that it expects fleet-wide availability by the end of 2027.
Other growth avenues include tiered fare products, MileagePlus, direct and NDC-enabled distribution, cargo, third-party services and Kinective Media. Management said on the call that United redesigned united.com to sell tiered products and that buy-up rates were high.
The company expects less than $8.0 billion of adjusted capital expenditures in 2026 because of aircraft delivery delays. Its fleet and network plans depend on demand, fuel prices, aircraft deliveries, certification, labor, suppliers, inflation and airport infrastructure.
- $24.6BFY2021
- $45.0BFY2022
- $53.7BFY2023
- $57.1BFY2024
- $59.1BFY2025
Structural risks
-
United Next execution and aircraft commitments. The plan involves firm orders for over 630 aircraft, retrofits and network growth. Demand, fuel costs, aircraft delivery and certification timing, labor, supply-chain constraints, inflation and maintenance needs could differ from assumptions and increase costs or limit execution.
-
Fuel price and availability exposure. Fuel prices and availability can materially affect operations and financial results. United’s purchase contracts generally do not provide material market-price protection, and the company does not currently hedge expected fuel consumption financially.
-
Intense fare and capacity competition. Airlines compete on routes, price, schedules, products and loyalty programs. Low-cost and ultra-low-cost carriers may price below United, while domestic and international rivals can add capacity on overlapping routes.
-
Supplier concentration. Boeing and Airbus supply substantially all aircraft and many related parts, while engines and certain parts come from limited suppliers. Production delays, certification issues, parts shortages or insufficient support can affect fleet plans, costs and schedules.
-
Hub disruption and airport constraints. A disruption at a hub can cause significant delays and cancellations. Construction, air-traffic-control issues, weather, airport infrastructure and government actions can constrain operations. Management said on the call that Chicago O’Hare is capped at 600 daily flights and that the constraint could remain through 2028.
-
Debt, fixed obligations and capital needs. The business requires substantial capital for aircraft and facilities and has debt, lease and other fixed obligations. Aircraft purchases, lease commitments and financing needs can reduce financial flexibility.
Bottom line
Our reading
Our reading: United is a capital-intensive global network airline whose passenger business is supplemented by cargo, ancillary sales and MileagePlus-related revenue. Its operating model relies on hub connectivity, regional flying, partnerships and a large aircraft investment program. Fuel, aircraft supply, airport constraints, competition and fixed financial obligations can materially affect results. Management’s current growth plan also depends on fleet deliveries, product installations and the ability to translate network and customer-service investments into durable demand.