United posts record $17.9 billion quarterly revenue as fuel expense jumps 62%

United Airlines (Nasdaq: UAL) said on Tuesday that third-quarter revenue rose 17% to a record $17.9 billion, even as higher jet fuel prices pushed fuel expense up 62%, according to its earnings release.

What happened

Total operating revenue was $17.9 billion, up 17.4% from the third quarter of 2025, while capacity rose only 1.3%. Revenue per available seat mile, a measure of unit revenue, rose 15.9%. United said premium revenue rose 17%, Basic Economy revenue 16%, loyalty revenue 17% and cargo revenue 23%. It carried a record 49.5 million customers.

Net income was $1.0 billion, or $3.14 per diluted share. Adjusted diluted earnings per share were $2.54, which United said was within its guidance. Pre-tax earnings were $1.3 billion, a margin of 7.3%.

The fuel bill

Aircraft fuel expense was $4.843 billion, compared with $2.997 billion a year earlier, an increase of $1.846 billion, or 61.6%. Gallons consumed rose 0.8% to 1,243 million, so the increase came almost entirely from price: the average price per gallon was $3.90, up 60.3% from $2.43. Excluding fuel, profit sharing, special charges and third-party business expenses, unit costs (CASM-ex) rose 7.8%.

Crude oil prices have been volatile this fall. The US Energy Information Administration's daily series, published by the St. Louis Fed, shows Brent crude at $115.22 a barrel on October 20, down from $130.03 on October 9.

Outlook and balance sheet

United expects fourth-quarter revenue growth to accelerate from the third quarter and to exceed 20% year over year. On October 16 it expanded its revolving credit facility, lifting available liquidity under it to $5 billion from $3 billion. Ending available liquidity was $17.7 billion, and total debt, finance leases and other financial liabilities were $26.4 billion. Trailing twelve-month net leverage was 2.4 times.

What to watch

The $1.846 billion rise in fuel expense compares with pre-tax earnings of $1.3 billion in the quarter (computed), so the path of jet fuel prices bears directly on the fourth-quarter result United is forecasting.