UNITED AIRLINES, INC.

Previous wording

•Geopolitical Conflicts in the Middle East: During the first half of 2026, geopolitical conflicts in the Middle East caused disruption of flying in the region and contributed to materially higher global fuel prices. In response, we took immediate and decisive actions to mitigate the impact of the operational disruptions and rising fuel costs, including reducing capacity and adjusting fares and fees. While our long-term outlook is positive due to our expectation that customer demand will remain strong, we may continue to be impacted by future volatility in the fuel market, especially if the geopolitical conflicts in the Middle East escalate or expand.

Current wording

•Geopolitical Conflicts Elevating Fuel Prices. The ongoing geopolitical conflicts in the Middle East and in other regions have caused disruption of flying and/or have contributed to materially higher global fuel prices. In response to the conflicts in the Middle East that arose earlier this year, we have taken immediate and decisive actions to mitigate the impact of the operational disruptions and rising fuel costs, including reducing capacity and adjusting fares and fees. While our long-term outlook is positive due to our expectation that customer demand will remain strong, we may continue to be impacted by future volatility in the fuel market, especially if the geopolitical conflicts in the Middle East or other regions escalate further or expand.

Previous wording

•Regulatory or Court Decisions Restricting Our Capacity Targets: We remain vulnerable to regulatory actions (including by the Federal Aviation Administration) or court decisions that would force us to adjust our planned capacity at our hub locations.

Current wording

•Regulatory or Court Decisions Restricting Our Capacity Targets. We remain vulnerable to regulatory actions (including by the Federal Aviation Administration) or court decisions that would require us to adjust our planned capacity at our hub locations.

Previous wording

•Governmental Funding Constraints: We are working with our U.S. federal government partners to reduce passenger travel disruptions due to potential budgetary decisions limiting or delaying government spending or reducing staffing of government agencies with which we interact routinely, including as a result of a federal government shutdown.

Current wording

•Governmental Funding Constraints. We have been working with our U.S. federal government partners to reduce passenger travel disruptions due to potential budgetary decisions limiting or delaying government spending or reducing staffing of government agencies with which we interact routinely, including as a result of a federal government shutdown.

Previous wording

We will monitor the potential favorable or unfavorable impacts of these and other factors on our business, operations, financial condition, future results of operations, liquidity and financial flexibility, which are dependent on future developments, including as a result of those factors discussed in Part I, Item 1A. Risk Factors, of our 2025 Form 10-K.

Current wording

We will monitor the potential favorable or unfavorable impacts of these and other factors on our business, operations, financial condition, results of operations, liquidity and financial flexibility, which are dependent on future developments, including as a result of the factors discussed in Part I, Item 1A. Risk Factors, of our 2025 Form 10-K.

Previous wording

The following discussion provides an analysis of our results of operations and reasons for material changes therein for the three and six months ended June 30, 2026, as compared to the corresponding period in 2025.

Current wording

The following discussion provides an analysis of our results of operations and reasons for material changes therein for the three and nine months ended September 30, 2026, as compared to the corresponding periods in 2025.

Previous wording

Passenger revenue increased $2.3 billion, or 16.4%, in the second quarter of 2026 as compared to the year-ago period, primarily due to a 12.1% increase in yield and a 5.4% increase in the number of passengers flown.

Current wording

Passenger revenue increased $2.4 billion, or 17.6%, in the third quarter of 2026 as compared to the year-ago period, primarily due to a 16.8% increase in yield and a 2.4% increase in the number of passengers flown.

Previous wording

Cargo revenue increased $97 million, or 22.6%, in the second quarter of 2026 as compared to the year-ago period, primarily due to an increase in freight yields.

Current wording

Cargo revenue increased $99 million, or 22.9%, in the third quarter of 2026 as compared to the year-ago period, primarily due to an increase in freight yields as well as a slight increase in tonnage.

Previous wording

Other operating revenue increased $75 million, or 7.7%, in the second quarter of 2026 as compared to the year-ago period, primarily due to an increase in mileage revenue from non-airline partners, including credit card spending with our co-branded credit card partner, JPMorgan Chase Bank, N.A., and an increase in visitor volumes at United Club lounges.

Current wording

Other operating revenue increased $127 million, or 12.9%, in the third quarter of 2026 as compared to the year-ago period, primarily due to an increase in mileage revenue from non-airline partners, including credit card spending with our co-branded credit card partner, JPMorgan Chase Bank, N.A., and an increase in visitor volumes at United Club lounges.

Previous wording

Salaries and related costs increased $274 million, or 6.2%, in the second quarter of 2026 as compared to the year-ago period, primarily due to increased pay as a result of the increase in flying activity, a 5.6% increase in headcount and pay rate increases for various eligible employee groups, most recently the employees represented by the Association of Flight Attendants ("AFA") per the new collective bargaining agreement.

Current wording

Salaries and related costs increased $406 million, or 8.9%, in the third quarter of 2026 as compared to the year-ago period, primarily due to increased pay as a result of the increase in flying activity, a 5.4% increase in headcount and pay rate increases for various eligible employee groups, including employees represented by the Association of Flight Attendants ("AFA") pursuant to the collective bargaining agreement that was ratified in May 2026.

Previous wording

Aircraft fuel expense increased $2.3 billion, or 84.1%, in the second quarter of 2026 as compared to the year-ago period, primarily due to a higher average price per gallon of fuel and increased consumption from increased flight activity.

Current wording

Aircraft fuel expense increased $1.8 billion, or 61.6%, in the third quarter of 2026 as compared to the year-ago period, primarily due to a higher average price per gallon of fuel.

Previous wording

Distribution expense increased $157 million, or 32.3%, in the second quarter of 2026 as compared to the year-ago period, primarily due to higher credit card fees and agency commissions driven by the overall increase in passenger revenue as well as the refinement of assumptions used in determining our credit card fees expense in the year-ago period.

Current wording

Distribution expense increased $77 million, or 13.9%, in the third quarter of 2026 as compared to the year-ago period, primarily due to higher credit card fees and agency commissions driven by the overall increase in passenger revenue.

Previous wording

Other operating expenses increased $215 million, or 8.6%, in the second quarter of 2026 as compared to the year-ago period, primarily due to an increase in flight activity and number of passengers, including increased costs for catering, ground handling and passenger services, crew-related expenses, as well as expenditures related to information technology projects and services.

Current wording

Other operating expenses increased $194 million, or 7.6%, in the third quarter of 2026 as compared to the year-ago period, primarily due to an increase in flight activity and number of passengers, including increased costs for catering, ground handling and passenger services, crew-related expenses, as well as expenditures related to information technology projects and services.

Previous wording

First Six Months 2026 Compared to First Six Months 2025

Current wording

First Nine Months 2026 Compared to First Nine Months 2025

Previous wording

Significant components of the Company's operating results for the six months ended June 30 are as follows (in millions, except percentage changes):

Current wording

Significant components of the Company's operating results for the nine months ended September 30 are as follows (in millions, except percentage changes):

Previous wording

Certain consolidated statistical information for the Company's operations for the six months ended June 30 is as follows:

Current wording

Certain consolidated statistical information for the Company's operations for the nine months ended September 30 is as follows:

Previous wording

Operating Revenue. The table below shows year-over-year comparisons by type of operating revenue for the six months ended June 30 (in millions, except for percentage changes):

Current wording

Operating Revenue. The table below shows year-over-year comparisons by type of operating revenue for the nine months ended September 30 (in millions, except for percentage changes):

Previous wording

The table below presents selected passenger revenue and operating data, broken out by geographic region, expressed as year-over-year changes for the six months ended June 30, 2026 compared to the six months ended June 30, 2025:

Current wording

The table below presents selected passenger revenue and operating data, broken out by geographic region, expressed as year-over-year changes for the nine months ended September 30:

Previous wording

Passenger revenue increased $3.6 billion, or 13.9%, in the first six months of 2026 as compared to the year-ago period, primarily due to an 8.4% increase in yield and a 4.8% increase in the number of passengers flown.

Current wording

Passenger revenue increased $6.0 billion, or 15.2%, in the first nine months of 2026 as compared to the year-ago period, primarily due to an 11.3% increase in yield and a 3.9% increase in the number of passengers flown.

Previous wording

Cargo revenue increased $90 million, or 10.5%, in the first six months of 2026 as compared to the year-ago period, primarily due to an increase in freight yields.

Current wording

Cargo revenue increased $189 million, or 14.7%, in the first nine months of 2026 as compared to the year-ago period, primarily due to an increase in freight yields as well as a slight increase in tonnage.

Previous wording

Other operating revenue increased $171 million, or 9.1%, in the first six months of 2026 as compared to the year-ago period, primarily due to an increase in mileage revenue from non-airline partners, including credit card spending with our co-branded credit card partner, JPMorgan Chase Bank, N.A., and an increase in visitor volumes at United Club lounges.

Current wording

Other operating revenue increased $298 million, or 10.4%, in the first nine months of 2026 as compared to the year-ago period, primarily due to an increase in mileage revenue from non-airline partners, including credit card spending with our co-branded credit card partner, JPMorgan Chase Bank, N.A., and an increase in visitor volumes at United Club lounges.

Previous wording

Operating Expenses. The table below presents data related to the Company's operating expenses for the six months ended June 30 (in millions, except for percentage changes):

Current wording

Operating Expenses. The table below presents data related to the Company's operating expenses for the nine months ended September 30 (in millions, except for percentage changes):

Previous wording

Salaries and related costs increased $680 million, or 7.9%, in the first six months of 2026 as compared to the year-ago period, primarily due to increased pay as a result of the increase in flying activity, a 5.6% increase in headcount and pay rate increases for various eligible employee groups, most recently the employees represented by the AFA per the new collective bargaining agreement.

Current wording

Salaries and related costs increased $1.1 billion, or 8.3%, in the first nine months of 2026 as compared to the year-ago period, primarily due to increased pay as a result of the increase in flying activity, a 5.4% increase in headcount and pay rate increases for various eligible employee groups, including employees represented by the AFA pursuant to the collective bargaining agreement that was ratified in May 2026.

Previous wording

Aircraft fuel expense increased $2.7 billion, or 48.8%, in the first six months of 2026 as compared to the year-ago period, primarily due to a higher average price per gallon of fuel and increased consumption from increased flight activity.

Current wording

Aircraft fuel expense increased $4.5 billion, or 53.3%, in the first nine months of 2026 as compared to the year-ago period, primarily due to a higher average price per gallon of fuel as well as increased consumption from increased flight activity.

Previous wording

Landing fees and other rent increased $170 million, or 9.3%, in the first six months of 2026 as compared to the year-ago period, primarily due to rate increases at various airports and higher landed weight volume due to increased flight activity.

Current wording

Landing fees and other rent increased $214 million, or 7.6%, in the first nine months of 2026 as compared to the year-ago period, primarily due to rate increases at various airports and higher landed weight volume due to increased flight activity.

Previous wording

Aircraft maintenance materials and outside repairs increased $164 million, or 10.3%, in the first six months of 2026 as compared to the year-ago period, primarily due to higher volumes of engine overhauls and component part repairs as well as contractual rate increases.

Current wording

Aircraft maintenance materials and outside repairs increased $191 million, or 8.0%, in the first nine months of 2026 as compared to the year-ago period, primarily due to higher volumes of engine overhauls and component part repairs as well as contractual rate increases.

Previous wording

Depreciation and amortization increased $58 million, or 3.9%, in the first six months of 2026 as compared to the year-ago period, primarily due to the induction of new aircraft as well as certain aircraft improvements.

Current wording

Depreciation and amortization increased $104 million, or 4.8%, in the first nine months of 2026 as compared to the year-ago period, primarily due to the induction of new aircraft as well as certain aircraft improvements.

Previous wording

Regional capacity purchase increased $67 million, or 9.8%, in the second quarter of 2026 as compared to the year-ago period, primarily due to a 6% increase in regional flying activity and annual rate increases under United's capacity purchase agreements ("CPAs").

Current wording

Regional capacity purchase increased $148 million, or 7.3%, in the first nine months of 2026 as compared to the year-ago period, primarily due to a 2% increase in regional flying activity and annual rate increases under United's capacity purchase agreements.

Previous wording

Distribution expenses increased $183 million, or 18.6%, in the first six months of 2026 as compared to the year-ago period, primarily due to higher credit card fees and agency commissions driven by the overall increase in passenger revenue as well as the refinement of assumptions used in determining our credit card fees expense in the year-ago period.

Current wording

Distribution expenses increased $260 million, or 16.9%, in the first nine months of 2026 as compared to the year-ago period, primarily due to higher credit card fees and agency commissions driven by the overall increase in passenger revenue as well as the refinement of assumptions used in determining our credit card fees expense in the year-ago period.

Previous wording

Aircraft rent increased $77 million, or 65.0%, in the first six months of 2026 as compared to the year-ago period, primarily due to the addition of new leased aircraft to the Company's fleet.

Current wording

Aircraft rent increased $139 million, or 80.4%, in the first nine months of 2026 as compared to the year-ago period, primarily due to the addition of new leased aircraft to the Company's fleet.

Previous wording

For details on the Company's Special charges, see Note 10 to the financial statements included in Part I, Item 1 of this report.

Current wording

For details on the Company's Special charges (credits), see Note 10 to the financial statements included in Part I, Item 1 of this report.

Previous wording

Other operating expenses increased $431 million, or 9.0%, in the first six months of 2026 as compared to the year-ago period, primarily due to an increase in flight activity and number of passengers, including increased costs for catering, ground handling and passenger services, crew-related expenses, as well as expenditures related to information technology projects and services.

Current wording

Other operating expenses increased $625 million, or 8.5%, in the first nine months of 2026 as compared to the year-ago period, primarily due to an increase in flight activity and number of passengers, including increased costs for catering, ground handling and passenger services, crew-related expenses, as well as expenditures related to information technology projects and services.

Previous wording

Nonoperating Income (Expense). The following table illustrates the year-over-year dollar and percentage changes in the Company's nonoperating income (expense) for the six months ended June 30 (in millions, except for percentage changes):

Current wording

Nonoperating Income (Expense). The following table illustrates the year-over-year dollar and percentage changes in the Company's nonoperating income (expense) for the nine months ended September 30 (in millions, except for percentage

Previous wording

Interest income decreased $47 million, or 14.2%, in the first six months of 2026 as compared to the year-ago period, primarily due to lower interest rates.

Current wording

Interest income decreased $33 million, or 6.9%, in the first nine months of 2026 as compared to the year-ago period, primarily due to lower interest rates.

Previous wording

As of June 30, 2026, the Company had $16.6 billion in unrestricted cash, cash equivalents and short-term investments, as compared to $12.2 billion at December 31, 2025. We believe that our existing cash, cash equivalents and short-term investments, together with cash generated from operations, will be sufficient to satisfy our anticipated liquidity needs for the next 12 months, and we expect to meet our long-term liquidity needs with our anticipated access to the capital markets and projected cash from operations.

Current wording

As of September 30, 2026, the Company had $14.7 billion in unrestricted cash, cash equivalents and short-term investments, as compared to $12.2 billion at December 31, 2025. We believe that our existing cash, cash equivalents and short-term investments, together with cash generated from operations, will be sufficient to satisfy our anticipated liquidity needs for the next 12 months, and we expect to meet our long-term liquidity needs with our anticipated access to the capital markets and projected cash from operations.

Previous wording

The Company has a $3.0 billion revolving credit facility as of June 30, 2026. The revolving credit facility is secured by certain route authorities and airport slots and gates. No borrowings were outstanding under the revolving credit facility as of June 30, 2026.

Current wording

The Company had $3.0 billion undrawn and available under its revolving credit facility as of September 30, 2026. No borrowings were outstanding under the revolving credit facility as of September 30, 2026. On October 16, 2026, the Company amended and restated its revolving credit facility to increase total commitments from $3.0 billion to $5.0 billion and to extend the maturity of the commitments to October 16, 2031. The amendment also reduced the applicable interest rate margins on borrowings under the facility. No borrowings were outstanding under the revolving credit facility as of the date of this report. See Note 8 to the financial statements included in Part I, Item 1 of this report and Part II, Item 5 (Other Information) for additional information regarding the Company's revolving credit facility.

Previous wording

noncancelable commitments for capital expenditures, including the acquisition of certain new aircraft and related spare engines. 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. As of June 30, 2026, a substantial portion of the Company's assets, principally aircraft and certain related assets, certain route authorities and airport slots and gates, was pledged under various loan and other agreements. See Note 8 to the financial statements included in Part I, Item 1 of this report for additional information on aircraft financing and other debt instruments.

Current wording

We have a significant amount of fixed obligations, including debt, leases of aircraft, airport and other facilities, and pension funding obligations. As of September 30, 2026, the Company had $34.3 billion of debt, finance lease, operating lease and other financial liabilities, including $2.8 billion that will become due in the next 12 months. In addition, we have substantial noncancelable commitments for capital expenditures, including the acquisition of certain new aircraft and related spare engines. 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 September 30, 2026, the Company was in compliance with its covenants under these debt agreements. As of September 30, 2026, a substantial portion of the Company's assets, principally aircraft and certain related assets, certain route authorities and airport slots and gates, was pledged under various loan and other agreements. See Note 8 to the financial statements included in Part I, Item 1 of this report for additional information on aircraft financing and other debt instruments.

Previous wording

The following table summarizes our cash flows for the six months ended June 30 (in millions):

Current wording

The following table summarizes our cash flows for the nine months ended September 30 (in millions):

Previous wording

Operating Activities. Cash flows provided by operating activities increased $0.5 billion in the first six months of 2026 as compared to the year-ago period, primarily due to an operating income increase period-over-period as well as a net change in various working capital items, primarily an increase in advance ticket sales.

Current wording

Operating Activities. Cash flows provided by operating activities decreased $271 million in the first nine months of 2026 as compared to the year-ago period, primarily due to a net change in various working capital items, primarily the one-time payment related to the flight attendant contract ratification, partially offset by an increase in advance ticket sales.

Previous wording

Investing Activities. Cash flows used in investing activities increased $0.3 billion in the first six months of 2026 as compared to the year-ago period, primarily due to an increase in capital expenditures attributable to the purchase of aircraft and related spare parts.

Current wording

Investing Activities. Cash flows used in investing activities increased $2.4 billion in the first nine months of 2026 as compared to the year-ago period, primarily due to an increase in the purchase of short-term and other investments as well as an increase in capital expenditures attributable to the purchase of aircraft and related spare parts.

Previous wording

Financing Activities. Significant financing events in the six months ended June 30, 2026 were as follows:

Current wording

Financing Activities. Significant financing events in the nine months ended September 30, 2026 were as follows: