Financial Analysis

"COMMITMENTS, CONTINGENCIES, AND GUARANTEES Purchase Commitments. The table below summarizes United's firm commitments as of December 31, 2025, which include aircraft and related spare engines, aircraft improvements and non-aircraft commitments (in billions): 2026 2027 2028 2029 2030 After 2030 Total Purchase commitments $ 12.6 $ 5.6 $ 7.4 $ 9.0 $ 8.7 $ 13.8 $ 57.0 Aircraft commitments included in the table above are based on contractual scheduled aircraft deliveries. The amount and timing of these commitments could change to the extent that: (i) the Company and the aircraft manufacturers, with whom the Company has existing orders for new aircraft, agree to modify (or further modify) the contracts governing those orders, (ii) rights are exercised pursuant to the relevant agreements to cancel deliveries or modify the timing of deliveries, or (iii) the aircraft manufacturers are unable to deliver in accordance with the terms of those orders. Regional CPAs. United has contractual relationships with various regional carriers to provide regional aircraft service branded as United Express. Under these CPAs, the Company pays the regional carriers contractually agreed fees (carrier costs) for operating these flights plus a variable rate adjustment based on agreed performance metrics, subject to annual adjustments. The fees are based on rates multiplied by specific operating statistics (e.g., block hours, departures), as well as fixed monthly amounts. Under these CPAs, the Company is …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The Company further disaggregates its operating revenue by principal geographic region for the years ended December 31 as presented in the table below (in millions): 2025 2024 2023 Domestic (U.S. and Canada) $ 35,017 $ 34,067 $ 32,400 Atlantic 11,647 11,097 10,982 Pacific 6,878 6,462 5,267 Latin America 5,528 5,437 5,068 Total $ 59,070 $ 57,063 $ 53,717

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"SHARE-BASED COMPENSATION PLANS UAL maintains share-based compensation plans for our management employees and our non-employee directors. These plans provide for grants of nonqualified stock options; incentive stock options (within the meaning of Section 422 of the Internal Revenue Code of 1986); stock appreciation rights (""SARs""); restricted stock; RSUs; performance units; cash incentive awards and other equity-based and equity-related awards. An award (other than an option, SAR or cash incentive award) may provide the holder with dividends or dividend equivalents. Awards are recorded as either equity or a liability in the Company's consolidated balance sheets. Share-based compensation expense is recorded in Salaries and related costs. During 2025, UAL granted share-based compensation awards pursuant to the United Airlines Holdings, Inc. 2021 Incentive Compensation Plan. These share-based compensation awards included approximately 1.8 million RSUs consisting of approximately 1.0 million time-vested RSUs and approximately 0.8 million performance-based RSUs. The time-vested RSUs vest pro-rata, a majority of which vest on February 28th of each year, over a three-year period from the date of grant. Performance-based awards vest either pro-rata, one-third each year, over a three-year period from the date of grant or all at once upon continuous employment with the Company over a three-year period. Payout under the performance-based awards can range from 0% to 300% depending on t …

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"FAIR VALUE MEASUREMENTS, INVESTMENTS AND NOTES RECEIVABLE Fair Value Measurement. The table below presents the fair value of financial assets and liabilities measured at fair value, based on the inputs described in Note 1, on a recurring basis in the Company's financial statements as of December 31 (in millions): 2025 2024 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 5,942 $ 5,942 $ $ $ 8,769 $ 8,769 $ $ Restricted cash - current 11 11 Restricted cash - non-current 139 139 166 166 Short-term investments: Corporate debt 3,399 3,399 3,127 3,127 U.S. government and agency notes 2,465 2,465 2,280 2,280 Certificates of deposit placed through an account registry service (""CDARS"") 59 59 Other fixed-income securities 433 433 240 240 Long-term investments: Equity securities 34 34 71 71 Investments presented in the table above have the same fair value as their carrying value. Short-term investments T he short-term investments shown in the table above are classified as available-for-sale and have remaining maturities of less than two years. Long-term investments: Equity securities Represents equity and equity-linked securities (such as vested warrants) that make up United's investments in Azul Linhas Aereas Brasileiras S.A. (""Azul""), Archer Aviation Inc. and Eve Holding, Inc. Equity securities at December 31, 2024 also included Mesa Air Group, Inc. (""Mesa""). On May 28, 2025, Azul announced it had entered into restructuring agreements wit …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The income tax provision differed from amounts computed at the statutory federal income tax rate and consisted of the following significant components for the years ended December 31 (in millions) : 2025 2024 2023 Income tax provision at statutory rate $ 904 21.0 % $ 875 21.0 % $ 711 21.0 % State income tax provision, net of federal income tax benefit (a) 74 1.7 % 59 1.4 % 37 1.1 % Change in valuation allowance (68) (1.6) % 27 0.6 % (24) (0.7) % Nontaxable or nondeductible items 27 0.6 % 48 1.2 % 39 1.1 % Other, net 16 0.4 % 10 0.2 % 6 0.2 % Income tax expense $ 953 22.1 % $ 1,019 24.4 % $ 769 22.7 % (a) California and Colorado make up more than 50% of the state income tax expense category in 2025. California, Colorado and Illinois make up more than 50% of the state income tax expense category in 2024 and 2023 The components of the income tax provision consisted of the following for the years ended December 31 (in millions): 2025 2024 2023 Current: US Federal $ (4) $ 50 $ US State and Local 20 28 8 Foreign 12 6 5 Total Current 28 84 13 Deferred: US Federal 866 898 726 US State and Local 58 37 30 Total Deferred 925 935 756 Total income tax expense: US Federal 862 948 726 US State and Local 79 65 38 Foreign 12 6 5 Total Income Tax Expense $ 953 $ 1,019 $ 769 The following table presents tax payment, net of refunds, by jurisdiction for the years ended December 31 (in million): 2025 2024 2023 Federal $ 33 $ 47 $ 1 State California 13 25 (4) Illinois 2 5 3 All other …

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"LEASES United leases aircraft, airport passenger terminal space, aircraft hangars and related maintenance facilities, cargo terminals, other airport facilities, other commercial real estate, office and computer equipment and vehicles, among other items. Certain of these leases include provisions for variable lease payments which are based on several factors, including, but not limited to, relative leased square footage, available seat miles, enplaned passengers, passenger facility charges, terminal equipment usage fees, departures, and airports' annual operating budgets. Due to the variable nature of these payments, they are not included in the calculation of the right-of-use asset and lease liability. Lease Cost . The Company's lease cost for the years ended December 31 included the following components (in millions): 2025 2024 2023 Operating lease cost $ 894 $ 855 $ 925 Variable and short-term lease cost 4,003 3,592 3,028 Amortization of finance lease assets 86 62 52 Interest on finance lease liabilities 15 16 20 Sublease income (33) (35) (39) Total lease cost $ 4,964 $ 4,490 $ 3,986 Lease Terms and Commitments . United's leases include aircraft leases for aircraft that are directly leased by United and aircraft that are operated by regional carriers on United's behalf under CPAs (but excluding aircraft owned by United) and non-aircraft leases. Aircraft operating leases relate to leases of 81 mainline and 217 regional aircraft while finance leases relate to leases of 27 ma …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"DEBT (In millions) Maturity Dates Interest Rate(s) at December 31, 2025 At December 31, 2025 2024 Equipment Notes (a) 2026 2037 2.70 % 6.25% $ 11,708 $ 12,983 2026 and 2029 Notes 2026 2029 4.38 % 4.63% 4,000 4,000 2024 Term Loans (b) 2031 5.73% 2,061 2,082 MileagePlus Senior Secured Notes n/a n/a 1,900 Other secured debt 2029 2035 4.00 % 5.25% 361 295 Unsecured PSP Notes (c) 2030 2031 1.00 % 5.93% 3,181 3,181 Notes n/a n/a 315 Other unsecured debt 2027 5.75% 71 81 21,383 24,837 Less: unamortized debt discount, premiums and debt issuance costs (117) (184) Less: current portion of long-term debt (4,096) (2,973) Long-term debt, net $ 17,170 $ 21,680 (a) Financing includes variable rate debt based on the Secured Overnight Financing Rate (""SOFR"") (or another index rate), generally subject to a floor, plus a specified margin of 0.64% to 2.00%. (b) Financing includes variable rate debt based on SOFR (or another index rate), subject to a floor, plus a specified margin of 2.00%. (c) The PSP Notes include $1.50 billion of indebtedness evidenced by a 10-year senior unsecured promissory note with Treasury provided under PSP, $0.9 billion of indebtedness evidenced by a 10-year senior unsecured promissory note issued to Treasury pursuant to PSP2 and $0.8 billion of indebtedness evidenced by a 10-year senior unsecured promissory note issued to Treasury pursuant to PSP3. These PSP Notes have a rate of 1.00% in years 1 through 5, and a rate of the SOFR plus 2.00% in years 6 through 10. As …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Standards Income Taxes. In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") No. 2023-09, ""Income Taxes (Topic 740): Improvements to Income Tax Disclosures."" This ASU enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. The Company adopted the standard beginning with our annual reporting for fiscal year 2025. The adoption resulted in incremental disclosures. See Note 7 of this report for these disclosures. Internal-Use Software. In September 2025, the FASB issued ASU No. 2025-06, ""IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40)."" The guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. This guidance requires internal-use software development cost capitalization to begin when both of the following occur: management has authorized and committed to funding the software project and, it is probable the project will be completed and the software will be used to perform its intended function. The guidance is effective for the Company for annual and interim reporting periods beginning January 1, 2028; early adoption is permitted. The Company early adopted this ASU on January 1, 2026, using the prospective transition approach, which applies this guidance to new software costs incurred starting on the adoption date. The …

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"PENSION, POSTRETIREMENT AND OTHER EMPLOYEE BENEFIT PLANS The following summarizes the significant pension and other postretirement plans of United: Pension Plans. United maintains two primary defined benefit pension plans, one covering certain pilot employees and another covering certain U.S. non-pilot employees. Each of these plans provides benefits based on a combination of years of benefit accruals service and an employee's final average compensation. Additional benefit accruals are frozen under the plan covering certain pilot employees and for management and administrative employees covered under the non-pilot plan. Benefit accruals for certain non-pilot employees continue. United maintains additional defined benefit pension plans, which cover certain international employees. Other Postretirement Plans. United maintains postretirement medical programs which provide medical benefits to certain retirees and eligible dependents, as well as life insurance benefits to certain retirees participating in the plan. Benefits provided are subject to applicable contributions, co-payments, deductibles and other limits as described in the specific plan documentation. Actuarial assumption changes are reflected as a component of the net actuarial (gain) loss. The 2025 actuarial losses were primarily related to expected pay increases for certain represented employees partially offset by asset performance. Actuarial (gains) losses are amortized over the average remaining service life of a …

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"REVENUE RECOGNITION Passenger Revenue . Passenger revenue is recognized when transportation is provided. Passenger tickets and related ancillary services sold by the Company for flights are purchased primarily via credit card transactions, with payments collected by the Company in advance of the performance of related services. The Company initially records ticket sales in its Advance ticket sales liability, deferring revenue recognition until the travel occurs. For travel that has more than one flight segment, the Company deems each segment as a separate performance obligation and recognizes revenue for each segment as travel occurs. Tickets sold by other airlines where the Company provides the transportation are recognized as passenger revenue at the estimated value to be billed to the other airline when travel is provided. Differences between amounts billed and the actual amounts may be rejected and rebilled or written off if the amount recorded was different from the original estimate. When necessary, the Company records a reserve against its billings and payables with other airlines based on historical experience. The Company sells certain tickets with connecting flights with one or more segments operated by its other airline partners. For segments operated by its other airline partners, the Company has determined that it is acting as an agent on behalf of the other airlines as they are responsible for their portion of the contract (i.e., transportation of the passenger …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation United Airlines Holdings, Inc. (together with its consolidated subsidiaries, ""UAL"" or the ""Company"") is a holding company incorporated in Delaware and its wholly-owned subsidiary is United Airlines, Inc. (together with its consolidated subsidiaries, ""United""). As UAL consolidates United for financial statement purposes, disclosures that relate to activities of United also apply to UAL, unless otherwise noted. United comprises substantially all of UAL's operating revenues, operating expenses, assets, liabilities and operating cash flows. When appropriate, UAL and United are named specifically for their individual contractual obligations and related disclosures and any significant differences between the operations and results of UAL and United are separately disclosed and explained. The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (""GAAP""). The Company consolidates variable interest entities when it determines that it is the primary beneficiary of those entities' operations. All material intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. In 2025, the Company changed its rounding presentation to the nearest whole number in millions of reported amounts, except …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"COMMON STOCKHOLDERS' EQUITY AND PREFERRED SECURITIES Common stock. On October 15, 2024, the Company announced that its Board of Directors (the ""Board"") authorized a new share repurchase program, allowing for purchases of up to $1.5 billion in the aggregate of outstanding UAL common stock and certain Warrants (as defined below) issued in connection with the Coronavirus Aid, Relief, and Economic Security Act (the ""CARES Act""), subject to a limit of $500 million in the aggregate through 2024. In 2025, the Company repurchased 8.1 million shares of UAL common stock at an average price of $78.75 for a total investment of approximately $640 million, including commissions and taxes, as part of the program. As of February 5, 2026, the dollar value of shares that may yet be purchased under the program is approximately $0.8 billion. Unless suspended or terminated earlier by the Board, this program has no set expiration date and will therefore terminate when the Company has completed all purchases authorized under the program. The specific timing and number of shares of UAL common stock or Warrants purchased will be determined by the Company's management at its discretion and will vary based on the capital needs of the business, the market price of UAL common stock, general market conditions, securities law limitations and other factors. The purchases may be effected through a combination of one or more open market and privately negotiated transactions (including under trading plans …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES Regional CPAs. During the six months ended June 30, 2026, United amended some of its CPAs with certain of its regional carriers to modify the terms for certain aircraft and amend the contractually agreed fees paid to those carriers. Our future commitments under our CPAs are dependent on numerous variables, and are, therefore, difficult to predict. The most important of these variables is the number of scheduled block hours. Although we are not required to purchase a minimum number of block hours under certain of our CPAs, we do have contractual minimum utilization levels in other CPAs and we have set forth below estimates of our future payments under the CPAs based on our current assumptions. The actual amounts we pay to our regional operators under CPAs could differ materially from these estimates. United's estimates of its future payments under all of the CPAs do not include the portion of the underlying obligation for any aircraft leased to a regional carrier or deemed to be leased from other regional carriers, or facility rent. For purposes of calculating these estimates, we have assumed (1) the number of block hours flown is based on our anticipated level of flight activity or at any contractual minimum utilization levels if applicable, whichever is higher, (2) that we will reduce the fleet as rapidly as contractually allowed under each CPA, (3) that aircraft utilization, stage length and load factors will remain constant, (4) that each car …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The table below presents the Company's operating revenue by principal geographic region (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Domestic (U.S. and Canada) $ 10,476 $ 8,784 $ 19,324 $ 16,818 Atlantic 3,632 3,370 5,873 5,270 Pacific 2,069 1,720 4,013 3,442 Latin America 1,495 1,362 3,070 2,919 Total $ 17,672 $ 15,236 $ 32,280 $ 28,448

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"FAIR VALUE MEASUREMENTS, INVESTMENTS AND NOTES RECEIVABLE The table below presents the value of financial assets measured at fair value on a recurring basis in the Company's financial statements (in millions): June 30, 2026 December 31, 2025 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 10,166 $ 10,166 $ $ $ 5,942 $ 5,942 $ $ Restricted cash noncurrent 142 142 139 139 Short-term investments: Corporate debt 3,550 3,550 3,399 3,399 U.S. government and agency notes 2,601 2,601 2,465 2,465 Other fixed-income securities 319 319 433 433 Long-term investments: Equity securities 170 170 34 34 Investments presented in the table above have the same fair value as their carrying amount. Short-term investments The short-term investments shown in the table above are classified as available-for-sale and have remaining maturities of less than two years. Long-term investments: Equity securities Represents equity and equity-linked securities (such as vested warrants) that comprise United's investments in Azul S.A. (""Azul""), Archer Aviation Inc. and Eve Holding, Inc. On February 17, 2026, United, Azul and certain of Azul's subsidiaries entered into an amended and restated investment agreement pursuant to which United agreed to subscribe for $100 million of American Depositary Shares (""ADS""), with each ADS initially representing 500,000 common shares, no par value, of Azul (and with each ADS representing two Azul common shares, after taking into acc …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Company's effective tax rates for the three and six months ended June 30, 2026 were 21.6% and 20.7%, respectively. The Company's effective tax rate for the three and six months ended June 30, 2025 were 22.0% and 21.2%, respectively. The provision for income taxes is based on the estimated annual effective tax rate, which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items.

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"DEBT As of June 30, 2026, the Company had $3.0 billion undrawn and available under its revolving credit facility. The table below presents the Company's contractual principal payments (not including $157 million of unamortized debt discount, premiums and debt issuance costs) as of June 30, 2026 under then-outstanding long-term debt agreements (in millions): Last Six Months of 2026 2027 2028 2029 2030 After 2030 Total Contractual principal payments $ 928 $ 2,049 $ 2,017 $ 4,752 $ 2,171 $ 11,165 $ 23,081 Our debt agreements contain customary terms and conditions as well as various affirmative, negative and financial covenants that, among other things, limit the ability of the Company and its subsidiaries, under certain circumstances, to incur additional indebtedness and pay dividends or repurchase stock. As of June 30, 2026, the Company was in compliance with its covenants under these debt agreements. On February 2, 2026, UAL issued, in a public offering, $1,000,000,000 principal amount of its 5.375% Senior Notes due 2031 (the ""2031 Notes""), which are guaranteed by United. The 2031 Notes, issued at a price of 100% of their principal amount, bear interest at a rate of 5.375% per annum, payable semi-annually on March 1 and September 1 of each year, beginning September 1, 2026 and maturing on March 1, 2031. UAL, at its option, may redeem the 2031 Notes at any time prior to September 1, 2030, in whole or in part, at a redemption price equal to the greater of (1) 100% of the prin …

LongTermDebtTextBlock · excerpt; the full note is in the filing

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The Company's net periodic benefit cost includes the following components for the three months ended June 30 (in millions): Pension Benefits Other Postretirement Benefits Affected Line Item in the Statements of Consolidated Operations 2026 2025 2026 2025 Service cost $ 33 $ 32 $ 2 $ 1 Salaries and related costs Interest cost 64 61 7 8 Miscellaneous, net Expected return on plan assets (80) (68) Miscellaneous, net Amortization of unrecognized gain (2) (11) (8) Miscellaneous, net Amortization of prior service credit (7) (22) Miscellaneous, net Total $ 17 $ 23 $ (9) $ (20) The Company's net periodic benefit cost includes the following components for the six months ended June 30 (in millions): Pension Benefits Other Postretirement Benefits Affected Line Item in the Statements of Consolidated Operations 2026 2025 2026 2025 Service cost $ 65 $ 64 $ 3 $ 3 Salaries and related costs Interest cost 129 121 14 16 Miscellaneous, net Expected return on plan assets (160) (136) (1) (1) Miscellaneous, net Amortization of unrecognized gain (1) (3) (14) (15) Miscellaneous, net Amortization of prior service credit (21) (43) Miscellaneous, net Total $ 34 $ 46 $ (19) $ (41) During the three and six months ended June 30, 2026, the Company contributed $9 million to its U.S. domestic tax-qualified defined benefit pension plans. …

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REVENUE RECOGNITION Revenue by Geography. The table below presents the Company's operating revenue by principal geographic region (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Domestic (U.S. and Canada) $ 10,476 $ 8,784 $ 19,324 $ 16,818 Atlantic 3,632 3,370 5,873 5,270 Pacific 2,069 1,720 4,013 3,442 Latin America 1,495 1,362 3,070 2,919 Total $ 17,672 $ 15,236 $ 32,280 $ 28,448 Advance ticket sales. In the six months ended June 30, 2026 and 2025, the Company recognized $5.9 billion and $5.5 billion, respectively, of passenger revenue for tickets that were included in Advance ticket sales at the beginning of those periods. Ancillary services. The Company recognized $1.4 billion and $2.6 billion of ancillary fees within passenger revenue in the three and six months ended June 30, 2026, respectively. The Company recorded $1.2 billion and $2.2 billion of ancillary fees within passenger revenue in the three and six months ended June 30, 2025, respectively. Frequent flyer deferred revenue. The table below presents a roll forward of Frequent flyer deferred revenue (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Beginning Balance $ 7,934 $ 7,591 $ 7,777 $ 7,441 Miles earned 1,083 991 2,118 1,910 Travel miles redeemed (1,013) (888) (1,848) (1,618) Non-travel miles redeemed (33) (29) (75) (67) Ending Balance $ 7,971 $ 7,665 $ 7,971 $ 7,665 In the three and six months ended June 30, 2026, the Company r …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing