Chicago, Illinois-based United Airlines Holdings, Inc. (UAL) is a major airline holding company. The company has a market cap of $35.5 billion and provides passenger and cargo air transportation services across the Americas, Europe, Asia, Australia, and the Middle East, serving more than 370 destinations across six continents.
UAL shares have outperformed the broader market over the past year and have lagged behind in 2026. UAL stock has grown 11.6% over the past 52 weeks and has fallen 4.1% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 10.5% over the past year and risen 10.6% in 2026.
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Narrowing the focus, UAL has outperformed the State Street Industrials Select Sector SPDR ETF’s (XLI) 11% rise over the past 52 weeks but has trailed its 10.4% increase this year.
www.barchart.com United Airlines delivered third-quarter earnings on Oct. 20, and its shares popped 2.3%. It posted record operating revenue of $17.88 billion, up 17.4% year over year, supported by strong passenger demand, higher fares, and broad-based growth across its premium, loyalty, and cargo businesses. Passenger revenue increased 17.6% to $16.24 billion, while cargo revenue climbed 22.9% to $529 million.
Despite the strong top-line performance, profitability faced significant cost pressures. Adjusted net income totaled $833 million, and adjusted diluted EPS fell to $2.54, missing analysts' expectations of $2.57. Rising fuel expenses were the biggest challenge during the quarter, with total operating expenses increasing 18.8% to $16.43 billion, outpacing revenue growth of 17.4%.
Looking ahead, United expects revenue growth to accelerate in Q4, with total operating revenue projected to increase more than 20% year over year and reach another quarterly record. Management also expects unit revenue growth to improve while unit cost growth excluding fuel moderates. Adjusted diluted EPS is expected to be between $0.50 and $1.50 for Q4 2026.
For the current year, which ends in December, analysts expect UAL’s EPS to fall 32.5% to $7.17 on a diluted basis. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in three of the last four quarters, while missing on another quarter.
UAL has a consensus “Strong Buy” rating overall. Of the 25 analysts covering the stock, opinions include 21 “Strong Buys,” two “Moderate Buys,” one “Hold,” and one “Strong Sell.”
www.barchart.com This configuration has remained mostly stable in recent months.
On Oct. 22, Wells Fargo maintained an “Overweight” rating on United Airlines but lowered its price target to $155 from $160.
UAL’s mean price target of $147.67 indicates a modest premium of 37.7% from the current market prices. Moreover, the Street-high target of $203 suggests a notable 89.3% upside potential.
On the date of publication, Kritika Sarmah did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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