United Airlines Holdings, Inc.

United Airlines Holdings, Inc. operates in the global air transportation industry, transporting people and cargo throughout North America and to destinations in Asia, Europe, Africa, the Pacific, the Middle East and Latin America. The Company, through United and its regional carriers, operates across six continents with hubs at Chicago O'Hare, Denver, Houston, Los Angeles, Newark, San Francisco, Washington Dulles and A.B. Won Pat International Airport in Guam. The hub-and-spoke system allows the Company to transport passengers between a large number of destinations with substantially more frequent service than if each route were served directly. The Company is a member of Star Alliance, the world's largest alliance network, which in 2025 served more than 1,150 airports in more than 190 countries and territories with 17,500 average daily departures.

The Company's primary competitors consist primarily of other airlines and, to a certain extent, other forms of transportation. Competition can be direct, in the form of another carrier flying the exact non-stop route, or indirect, where a carrier serves the same two cities non-stop from an alternative airport or via a connecting itinerary. The Company faces significant competition from traditional network carriers, national point-to-point carriers and discount carriers, including low-cost carriers and ultra-low-cost carriers, that may have lower costs and provide service at lower fares. Internationally, the Company competes not only with U.S. airlines but also with foreign carriers, including government-subsidized competitors from certain Middle East countries. The Company's competitive advantages include its comprehensive route network among North American carriers, its membership in Star Alliance, and its participation in four passenger joint business arrangements covering transatlantic, transpacific, United States-New Zealand, and United States-Canada transborder routes.

The Company generates revenue primarily by transporting people and cargo. The Company sells airline tickets and ancillary products through a wide range of distribution channels, including direct channels such as the Company's website and mobile app, as well as traditional travel agencies, online travel agencies and other intermediaries. The Company's MileagePlus loyalty program builds customer loyalty by offering awards, benefits and services to program participants, who earn miles for flights on United, United Express, Star Alliance members and certain other airlines, as well as by purchasing goods and services from a network of non-airline partners such as credit card issuers, retail merchants, hotels and car rental companies. The Company also generates third-party business revenue that includes maintenance services, frequent flyer award non-travel redemptions, flight academy and ground handling.

The Company's operating revenues are derived from passenger transportation, which is the largest revenue category. For the year ended December 31, 2025, passenger revenues were $48.449 billion ¹, compared to $46.673 billion ² in 2024 and $44.093 billion ³ in 2023. Cargo revenues were $1.376 billion ⁴ in 2025, compared to $1.340 billion ⁵ in 2024 and $1.316 billion ⁶ in 2023. Other revenues were $4.385 billion ⁷ in 2025, compared to $4.065 billion ⁸ in 2024 and $3.742 billion ⁹ in 2023. The Company's passenger revenues are further segmented by geographic region: Domestic passenger revenues were $30.155 billion ¹⁰ in 2025, Atlantic passenger revenues were $9.829 billion ¹¹, Pacific passenger revenues were $4.503 billion ¹², and Latin America passenger revenues were $3.962 billion ¹³. The Company also reports passenger ancillary fees separately, which were $2.064 billion ¹⁴ in 2025.

The Company's MileagePlus loyalty program is a significant component of its business. In 2025, approximately 10.9 million ¹⁵ MileagePlus flight awards were used on United and United Express, representing approximately 10.3% ¹⁶ of United's total revenue passenger miles. Total miles redeemed for flights on United and United Express, including class-of-service upgrades, represented approximately 90% ¹⁷ of the total miles redeemed. Excluding miles redeemed for flights on United and United Express, MileagePlus members redeemed miles for approximately 4.3 million ¹⁸ other awards, including United Club memberships, car and hotel awards, merchandise and flights on other air carriers. The Company has an agreement with JPMorgan Chase Bank, N.A. pursuant to which members of the MileagePlus loyalty program who are residents of the United States can earn miles for making purchases using a MileagePlus credit card issued by Chase. The Company also provides freight and mail transportation services through its Air Cargo operations, generating revenues in domestic and international markets through the use of cargo capacity on regularly scheduled passenger flights, interline and charter flights, and ground trucking arrangements.

In 2025, the Company continued to make progress with its United Next plan, which includes firm orders of over 630 ¹⁹ new narrow- and widebody aircraft by the end of 2034. The Company has taken delivery of new aircraft that have increased gauge, scale and connectivity as well as improved fuel efficiency. Key highlights include increasing employee headcount by more than 38,000 ²⁰ employees since 2020, surpassing 530 ²¹ new and retrofit aircraft featuring United's signature interior with bigger bins, seatback screens at every seat and Bluetooth connectivity, and inaugurating service to eight new destinations: Nuuk, Greenland; Ulaanbaatar, Mongolia; Faro, Portugal; Puerto Escondido, Mexico; Palermo, Italy; Bilbao, Spain; and Madeira Island, Portugal. The Company launched Kinective Media, the first media network that uses insights from travel behaviors to connect customers to personalized advertising, and began bringing Starlink's Wi-Fi service to United Express regional aircraft and mainline aircraft. The Company also launched the United Airlines Ventures Sustainable Flight Fund, a first-of-its-kind investment vehicle to support start-ups developing technologies focused on decarbonizing aviation. In 2025, the Company hired approximately 13,100 ²² employees across the globe. The Company repurchased shares of its common stock during the period, and as of December 31, 2025, had approximately 113,200 ²³ employees, of whom approximately 83% ²⁴ were represented by various U.S. labor organizations.

For the fiscal year ended December 31, 2025, the Company reported total operating revenues of $54.210 billion ²⁵, compared to $52.078 billion ²⁶ in 2024 and $49.151 billion ²⁷ in 2023. Net income for 2025 was $3.949 billion ²⁸, compared to $3.514 billion ²⁹ in 2024 and $2.618 billion ³⁰ in 2023. Diluted earnings per share for 2025 were $11.92 ³¹, compared to $10.67 ³² in 2024 and $7.94 ³³ in 2023. Operating income for 2025 was $5.490 billion ³⁴, compared to $5.016 billion ³⁵ in 2024 and $4.064 billion ³⁶ in 2023. The Company's operating margin improved to 10.1% ³⁷ in 2025 from 9.6% ³⁸ in 2024 and 8.3% ³⁹ in 2023.

The Company's United Next plan includes firm orders of over 630 ⁴⁰ new narrow- and widebody aircraft by the end of 2034. The Company expects to continue to take delivery of these aircraft, which are intended to increase gauge, scale and connectivity as well as improve fuel efficiency. The Company has made assumptions including customer demand, fuel costs, delivery of aircraft, aircraft certification approval timelines, labor market constraints and related costs, supply chain constraints, inflationary pressures, and other macroeconomic and geopolitical factors. The Company has also adjusted certain assumptions as a result of increases in costs due to infrastructure improvements, new labor contracts and aircraft maintenance needed to support the United Next plan as well as delays in aircraft deliveries.

The Company is focused on expanding its leading global network, having inaugurated service to eight new destinations in 2025: Nuuk, Greenland; Ulaanbaatar, Mongolia; Faro, Portugal; Puerto Escondido, Mexico; Palermo, Italy; Bilbao, Spain; and Madeira Island, Portugal. The Company also plans to continue to expand its network to destinations like Bangkok, Thailand; Ho Chi Minh City, Vietnam; and Adelaide, Australia. The Company is investing in technology changes that empower employees and improve the customer experience, including bringing Starlink's Wi-Fi service to its fleet and launching Kinective Media, a media network that uses insights from travel behaviors to connect customers to personalized advertising. The Company is also investing in its corporate venture capital arm, UAV, and the United Airlines Ventures Sustainable Flight Fund to invest in sustainable aviation technologies and innovation.

The Company's operating margin improved to 10.1% ⁴¹ in 2025 from 9.6% ⁴² in 2024. The Company's fuel expense was $11.396 billion ⁴³ in 2025, representing 21% ⁴⁴ of total operating expense, compared to $11.756 billion ⁴⁵ and 23% ⁴⁶ in 2024. The average price per gallon of fuel was $2.44 ⁴⁷ in 2025, compared to $2.65 ⁴⁸ in 2024. The Company's current strategy is to not enter into financial transactions to hedge the market price exposure of its expected fuel consumption, although the Company regularly reviews its strategy based on market conditions and other factors. The Company expects that its absolute GHG emissions will continue to increase in the immediate future as the Company continues to grow.

The Company's regional capacity accounted for approximately 6.1% ⁴⁹ of the Company's total capacity for the year ended December 31, 2025. The Company has contractual relationships with regional carriers CommuteAir, GoJet Airlines, Mesa Airlines, Republic Airways and SkyWest Airlines under capacity purchase agreements. Under these CPAs, the Company pays contractually agreed fees based on rates multiplied by specific operating statistics as well as fixed monthly amounts, and is responsible for all fuel costs incurred, as well as landing fees and other costs. The Company continues to invest in modernizing its distribution systems, including enhancements to its direct channels and implementing New Distribution Capability to support the marketing and sale of its products.

The Company's capital expenditure plans are driven by its United Next plan, which includes firm orders of over 630 ⁵⁰ new aircraft by the end of 2034. The Company has made significant technology changes that empower employees and improve the customer experience. The Company is also investing in the electrification of ground service equipment across its hubs and stations; as of the end of 2025, over 5,800 ⁵¹ units of the Company's GSE around the world are electric, representing approximately 41% ⁵² of its GSE fleet. The Company continues to invest in its leadership development programs and technical training programs, including immersive training, virtual reality, simulations, on the job training and assessments of proficiency.

The Company has a substantial amount of debt, which imposes certain limitations on its business development capacity. The Company's debt structure includes secured debt such as equipment notes with interest rates ranging from 2.36% to 12.00% ⁵³, secured notes due 2026 and 2029 with interest rates ranging from 2.50% to 8.00% ⁵⁴, MileagePlus senior secured notes, and other secured debt with interest rates ranging from 2.36% to 12.00% ⁵⁵. The Company also has unsecured debt including Payroll Support Program notes with interest rates ranging from 1.00% to 2.00% ⁵⁶ and unsecured notes. The Company's ability to pursue acquisitions, investments, joint ventures and other portfolio actions may be constrained by its debt levels and credit ratings.

The Company faces significant headwinds from the highly competitive nature of the airline industry, including price discounting and capacity changes by competitors. The Company's U.S. operations are subject to competition from low-cost carriers and ultra-low-cost carriers that engage in substantial price discounting, which has caused the Company to reduce fares for certain routes, resulting in lower yields on many domestic markets. The Company also faces competition from government-subsidized competitors from certain Middle East countries that have large numbers of international widebody aircraft on order and are increasing service to the U.S. from their hubs. Additionally, the Company faces risks from geopolitical conflicts, terrorist attacks, and security events that could adversely affect demand for air travel and fuel prices. The suspension of the Company's overflying in Russian airspace as a result of the Russia-Ukraine military conflict has significantly impacted the Company's financial condition, cash flows and results of operations.

The Company faces significant regulatory and environmental compliance costs. The Company is subject to extensive government regulation by the DOT, FAA, DHS and other U.S. and international regulatory bodies. The Company's anticipated CORSIA compliance costs for the first phase, 2024-2026, for which compliance is intended to be demonstrated by 2028, may be substantial. The Company is also subject to environmental regulations including those related to GHG emissions, noise, and PFAS. The Company expects that its absolute GHG emissions will continue to increase in the immediate future as the Company continues to grow. The Company has made commitments to reduce its GHG emissions by 100% by 2050 and its carbon emission intensity by 50% by 2035 compared to 2019, and expects to continue to incur costs to achieve these climate goals.

The Company faces significant risks from its substantial debt levels, with secured debt including equipment notes bearing interest rates ranging from 2.36% to 12.00% ⁵⁷ and unsecured Payroll Support Program notes with interest rates ranging from 1.00% to 2.00% ⁵⁸, which impose limitations on business development capacity and could result in credit rating downgrades. The Company's United Next plan, which includes firm orders of over 630 ⁵⁹ aircraft by 2034, is subject to execution risk from assumptions about customer demand, fuel costs, aircraft delivery timelines, labor market constraints, supply chain disruptions, and inflationary pressures that may differ from actual conditions. The Company is highly unionized with approximately 83% ⁶⁰ of its 113,200 ⁶¹ employees represented by labor organizations, and failure to reach agreements in ongoing negotiations could result in work interruptions or stoppages; the Company's flight attendants represented by the AFA voted against ratification of a tentative agreement in July 2025, and negotiations continue. The Company faces significant environmental compliance costs, with anticipated CORSIA compliance costs for the 2024-2026 phase that may be substantial, and the Company's absolute GHG emissions are expected to continue increasing in the immediate future despite commitments to reduce emissions intensity by 50% by 2035 compared to 2019. The Company is dependent on a limited number of suppliers for aircraft and engines, primarily Boeing and Airbus, and production delays have caused the Company to rework its fleet plan, with further delays possible that could impact financial position and results of operations.

Management's message emphasizes the Company's shared purpose of 'Connecting People. Uniting the World.' and highlights the progress made with the United Next plan to align the Company's network and product with the potential of its hubs while remaining focused on protecting the safety of its employees and customers and providing a superior customer experience. Key strategic priorities include taking delivery of over 630 ⁶² new narrow- and widebody aircraft by the end of 2034, increasing employee headcount by more than 38,000 ⁶³ employees since 2020, surpassing 530 ⁶⁴ new and retrofit aircraft featuring United's signature interior, expanding the global network to new destinations, launching Kinective Media, bringing Starlink's Wi-Fi service to the fleet, and making significant technology changes that empower employees and improve the customer experience. Management also emphasizes the Company's commitment to environmental sustainability, including a net zero goal to reduce GHG emissions by 100% by 2050 without relying on voluntary traditional carbon offsets, and a mid-term target of reducing carbon emissions intensity by 50% by 2035 compared to 2019, which has been validated by the Science Based Targets initiative.