United Airlines Q4 2025 United Airlines Holdings Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 United Airlines Holdings Inc Earnings Call
Will be that'll be your conference facilitator today.
Following the initial remarks for management, we will open the lines for questions.
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I will now turn the presentation over to your host. For today's call, Christina Edwards, managing director of investor relations. Please go ahead.
Speaker #1: Good morning. And welcome to United Airlines Holdings, Earnings Conference Call for the fourth quarter and full year 2025. My name is Colby, and I'll be your conference facilitator today.
Operator: Good morning, and welcome to United Airlines Holdings' earnings conference call for the fourth quarter and full year 2025. My name is Colby, and I'll be your conference facilitator today. Following the initial remarks from management, we will open the lines for questions. All lines have been placed on mute to prevent any background noise, and if you'd like to ask a question at that time, please press star, then the number one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question at any time, please press star one again. Thank you. This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed, or rebroadcast without the company's permission. Your participation implies your consent to our recording of this call.
Operator: Good morning, and welcome to United Airlines Holdings' Earnings Conference Call For The Fourth Quarter And Full Year 2025. My name is Colby, and I'll be your conference facilitator today. Following the initial remarks from management, we will open the lines for questions. All lines have been placed on mute to prevent any background noise, and if you'd like to ask a question at that time, please press star, then the number one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question at any time, please press star one again. Thank you. This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed, or rebroadcast without the company's permission. Your participation implies your consent to our recording of this call.
Q4 2025 United Airlines Holdings Inc Earnings Call
Speaker #1: Following the initial remarks from management, we will open the lines for questions. All lines have been placed on mute to prevent any background noise.
Speaker #1: And if you’d like to ask a question at that time, please press star, then the number one on your telephone keypad to raise your hand and enter the queue.
Speaker #1: If you would like to withdraw your question at any time, please press star once again. Thank you. This call is being recorded, and it's copyrighted.
Thank you, Colby, good morning, everyone and welcome to United's fourth quarter and full year 2025 earnings conference call. Yesterday, we issued our earnings release which is available on our website at iRun united.com information and yesterday's release. And the remarks made during this conference call may contain forward-looking statements, which represent the company's current expectations and are based upon information currently available to the company. A number of factors could cause actual results to differ materially from our current expectations, please refer to our earnings release form 10K and 10q and other reports filed with the FCC by United.
Airlines Holdings and United Airlines for more thorough description of these factors.
Speaker #1: Please note that no portion of the call may be recorded, transcribed, or rebroadcast without the company's permission. Your participation implies your consent to our recording of this call.
Unless otherwise noted, we will be discussing our financial metrics on a non-gaap basis. On this call and historical operational metrics will exclude pandemic years of 2020 to 2022. Please refer to the related definitions. And reconciliations of these non-gaap measures to the most directly comparable gaap measures at the end of our earnings release.
Speaker #1: If you do not agree with these terms, simply drop off the line. I will now turn the presentation over to your host for today's call, Kristina Edwards.
Operator: If you do not agree with these terms, simply drop off the line. I will now turn the presentation over to your host for today's call, Kristina Edwards, Managing Director of Investor Relations. Please go ahead.
If you do not agree with these terms, simply drop off the line. I will now turn the presentation over to your host for today's call, Kristina Edwards, Managing Director of Investor Relations. Please go ahead.
Speaker #1: Managing Director of Investor Relations. Please go
Speaker #1: ahead. Thank you, Colby.
Kristina Edwards: Thank you, Colby. Good morning, everyone, and welcome to United's fourth quarter and full year 2025 earnings conference call. Yesterday, we issued our earnings release, which is available on our website at ir.united.com. Information in yesterday's release and the remarks made during this conference call may contain forward-looking statements, which represent the company's current expectations and are based upon information currently available to the company. A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and 10-Q, and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors. Unless otherwise noted, we will be discussing our financial metrics on a non-GAAP basis on this call, and historical operational metrics will exclude pandemic years as 2020 to 2022.
Kristina Edwards: Thank you, Colby. Good morning, everyone, and welcome to United's Fourth Quarter And Full Year 2025 Earnings Conference Call. Yesterday, we issued our earnings release, which is available on our website at ir.united.com. Information in yesterday's release and the remarks made during this conference call may contain forward-looking statements, which represent the company's current expectations and are based upon information currently available to the company. A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and 10-Q, and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors. Unless otherwise noted, we will be discussing our financial metrics on a non-GAAP basis on this call, and historical operational metrics will exclude pandemic years as 2020 to 2022.
Speaker #2: Good morning, everyone, and welcome to United's fourth quarter and full year 2025 earnings conference call. Yesterday, we issued our earnings release, which is available on our website at ir.united.com.
Joining us in Houston today to discuss our results and Outlook are chief executive officer, Scott Kirby president, Brett Hart, Executive, Vice President and chief operations officer to be inquest, Executive, Vice, President and chief commercial officer. Andrew Noella and Executive Vice President and Chief Financial Officer, Mike luskin. We also have other members of the executive team on the line and available for Q&A. And now I'd like to flip the call over to Scott.
Speaker #2: Information in yesterday's release, and the remarks made during this conference call, may contain forward-looking statements, which represent the company's current expectations and are based upon information currently available to the company.
Thank you, Christina. And thank you to everyone for joining us today.
Speaker #2: A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and 10-Q, and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors.
2025 have more than its fair share of unusual challenges, but the people of United did a truly remarkable job of living our no excuses culture. Focusing on the customers and overcoming obstacles. Last year, was really a proof point. That the strategy we've had to build our Revenue diverse brand loyal, Airline the United for the last decade is not only working, but it's remarkably resilient and tough times as well.
Speaker #2: Unless otherwise noted, we will be discussing our financial metrics on a non-GAAP basis on this call and historical operational metrics will exclude pandemic years of 2020 to 2022.
Speaker #2: Please refer to the related definitions and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures at the end of our earnings release.
Kristina Edwards: Please refer to the related definitions and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures at the end of our earnings release. Joining us in Houston today to discuss our results and outlook are Chief Executive Officer Scott Kirby, President Brett Hart, Executive Vice President and Chief Operations Officer Toby Enqvist, Executive Vice President and Chief Commercial Officer Andrew Nocella, and Executive Vice President and Chief Financial Officer Mike Leskinen. We also have other members of the executive team on the line and available for Q&A. And now, I'd like to flip the call over to Scott.
Please refer to the related definitions and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures at the end of our earnings release. Joining us in Houston today to discuss our results and outlook are Chief Executive Officer Scott Kirby, President Brett Hart, Executive Vice President and Chief Operations Officer Toby Enqvist, Executive Vice President and Chief Commercial Officer Andrew Nocella, and Executive Vice President and Chief Financial Officer Mike Leskinen. We also have other members of the executive team on the line and available for Q&A. And now, I'd like to flip the call over to Scott.
The proof is in the numbers and we expect to be the only US Airline that managed to grow EPS year-over-year despite all the headlines. The United Team truly is the best in global Aviation and I'm very proud of them.
They have made today's United, a remarkably different Airline than it was in the past.
Speaker #2: Joining us in Houston today to discuss our results and outlook are our Chief Executive Officer, Scott Kirby; President, Brett Hart; Executive Vice President and Chief Operations Officer, Toby Enqvist; Executive Vice President and Chief Commercial Officer, Andrew Nocella; and Executive Vice President and Chief Financial Officer, Mike Leskinen.
Speaker #2: We also have other members of the executive team on the line and available for Q&A. And now, I'd like to flip the call over to Scott.
Before turning the 2026, I want to wish all the best to a friend and an industry icon. Glen hauenstein. My first real introduction to what has become modern successful Airlines like Delta and United was it. Continental in 1994 with Glenn and Andrew Nella as they were dismantling cow light and building the Newark in Houston, hubs that we didn't United are now proud to call our own.
Speaker #1: Thank you, Kristina, and thank you to everyone for joining us today. 2025 had more than its fair share of unusual challenges, but the people of United did a truly remarkable job of living our no-excuses culture, focusing on the customers and overcoming obstacles.
Operator: Thank you, Kristina, and thank you to everyone for joining us today. 2025 had more than its fair share of unusual challenges, but the people of United did a truly remarkable job of living our no-excuses culture, focusing on the customers, and overcoming obstacles. Last year was really a proof point that the strategy we've had to build a revenue-diverse, brand-loyal airline at United for the last decade is not only working, but it's remarkably resilient in tough times as well. The proof is in the numbers, and we expect to be the only US airline that managed to grow EPS year over year despite all the headwinds. The United team truly is the best in global aviation, and I'm very proud of them. They have made today's United a remarkably different airline than it was in the past.
Scott Kirby: Thank you, Kristina, and thank you to everyone for joining us today. 2025 had more than its fair share of unusual challenges, but the people of United did a truly remarkable job of living our no-excuses culture, focusing on the customers, and overcoming obstacles. Last year was really a proof point that the strategy we've had to build a revenue-diverse, brand-loyal airline at United for the last decade is not only working, but it's remarkably resilient in tough times as well. The proof is in the numbers, and we expect to be the only US airline that managed to grow EPS year over year despite all the headwinds. The United team truly is the best in global aviation, and I'm very proud of them. They have made today's United a remarkably different airline than it was in the past.
I remember Glenn was coming into the conference room where I sat and yelled at me for being too loud. Something by the way, that my wife Kathleen wholeheartedly agrees with Clint on
Speaker #1: Last year, it was really a proof point that the strategy we've had to build our revenue-diverse, brand-loyal airline at United for the last decade is not only working, but it's remarkably resilient in tough times as well.
Speaker #1: The proof is in the numbers, and we expect to be the only US airline that managed to grow EPS year over year despite all the headwinds.
At an airline. I think the most important and impactful job is building a great commercial strategy and a large modern Airline, simply cannot succeed without a commercial Superstar. Glenn and Andrew are simply in a separately from all the other commercial Minds around the globe and Glenn on, a personal level, given the momentum at United. I'll just say that your retirement timing is impeccable.
Speaker #1: The United team truly is the best in global aviation, and I'm very proud of them. They have made today's United a remarkably different airline than it was in the past.
Speaker #1: Before turning to 2026, I want to wish all the best to a friend and an industry icon, Glenn Howenstein. My first real introduction to what has become modern, successful airlines like Delta and United was at Continental in 1994, with Glenn and Andrew Nocella, as they were dismantling CAL Lite and building the newer Ken Houston hubs that we at United are now proud to call our own.
Operator: Before turning to 2026, I want to wish all the best to a friend and an industry icon, Glen Hauenstein. My first real introduction to what has become modern, successful airlines like Delta and United was at Continental in 1994 with Glen and Andrew Nocella as they were dismantling Continental Lite and building the Newark and Houston hubs that we at United are now proud to call our own. I remember Glen once coming into the conference room where I sat and yelled at me for being too loud, something, by the way, that my wife, Kathleen, wholeheartedly agrees with Glen on. At an airline, I think the most important and impactful job is building a great commercial strategy, and a large modern airline simply cannot succeed without a commercial superstar. Glen and Andrew are simply in a separate league from all the other commercial minds around the globe.
Before turning to 2026, I want to wish all the best to a friend and an industry icon, Glen Hauenstein. My first real introduction to what has become modern, successful airlines like Delta and United was at Continental in 1994 with Glen and Andrew Nocella as they were dismantling Continental Lite and building the Newark and Houston hubs that we at United are now proud to call our own. I remember Glen once coming into the conference room where I sat and yelled at me for being too loud, something, by the way, that my wife, Kathleen, wholeheartedly agrees with Glen on. At an airline, I think the most important and impactful job is building a great commercial strategy, and a large modern airline simply cannot succeed without a commercial superstar. Glen and Andrew are simply in a separate league from all the other commercial minds around the globe.
After a solid year in 2025 2026 sets up as more of the same United. But with a much better industry backdrop, our plan has been working for the last decade. And while we make Minor Adjustments to it every year, the core of building a great Revenue, diverse brand loyal, Airline Remains the Same. We've had the right strategy for a long time. Now, in the United Team across the board, it's just better at executing than any other airline in the world. I'm proud of them and excited as we continue to build the best airline and aviation history on to you Brett.
Speaker #1: I remember Glenn once coming into the conference room where I sat and yelled at me for being too loud. Something, by the way, that my wife, Kathleen, wholeheartedly agrees with Glenn on.
Thank you, Scott and good morning while 2025 presented a challenging macro backdrop for the industry. We remain laser focused on the customer experience and on building brand loyalty.
Speaker #1: At an airline I think the most important and impactful job is building a great commercial strategy. And a large, modern airline simply cannot succeed without a commercial superstar.
Continued investments in the travel experience, communication and reliability, helped us navigate disruption, and deliver to our for our customers.
Speaker #1: Glenn and Andrew are simply in a separate league from all the other commercial minds around the globe. And Glenn, on a personal level, given the momentum at United, I'll just say that your retirement timing is impeccable.
Our Strong net promoter scores, for the year, highlight, the care and consistency.
Operator: Glen, on a personal level, given the momentum at United, I'll just say that your retirement timing is impeccable. After a solid year in 2025, 2026 sets up as more of the same at United, but with a much better industry backdrop. Our plan has been working for the last decade, and while we make minor adjustments to it every year, the core of building a great, revenue-diverse, brand-loyal airline remains the same. We've had the right strategy for a long time now, and the United team, across the board, is just better at executing than any other airline in the world. I'm proud of them and excited as we continue to build the best airline in aviation history. On to you, Brett.
Glen, on a personal level, given the momentum at United, I'll just say that your retirement timing is impeccable. After a solid year in 2025, 2026 sets up as more of the same at United, but with a much better industry backdrop. Our plan has been working for the last decade, and while we make minor adjustments to it every year, the core of building a great, revenue-diverse, brand-loyal airline remains the same. We've had the right strategy for a long time now, and the United team, across the board, is just better at executing than any other airline in the world. I'm proud of them and excited as we continue to build the best airline in aviation history. On to you, Brett.
Speaker #1: After a solid year in 2025, 2026 sets up as more of the same at United, but with a much better industry backdrop. Our plan has been working for the last decade, and while we make minor adjustments to it every year, the core of building a great, revenue-diverse, brand-loyal airline remains the same.
We finished 2025 with an almost 3-point increase in our overall, net promoter score.
And during the month of November amid an unprecedented government shutdown and a real-time flight reductions, we had the best NPS month in the company's history.
Speaker #1: We've had the right strategy for a long time now, and the United team, across the board, is just better at executing than any other airline in the world.
Speaker #1: I'm proud of them, and excited as we continue to build the best airline in aviation history. On to you, Brett.
This is a testament to our customer focus, decisive actions and customer-friendly policies, and commitment to transparent. Communication. Specially during disruptions Toby will share more details of specific actions. We took to produce these customer-friendly results.
Speaker #3: Thank you, Scott, and good morning. While 2025 presented a challenging macro backdrop for the industry, we remain laser-focused on the customer experience and on building brand loyalty.
Brett Hart: Thank you, Scott, and good morning. While 2025 presented a challenging macro backdrop for the industry, we remain laser-focused on the customer experience and on building brand loyalty. Continued investments in the travel experience, communication, and reliability helped us navigate disruption and deliver for our customers. Our strong Net Promoter Scores for the year highlight the care and consistency built into the United travel experience. Despite the operational headwinds of the year, we finished 2025 with an almost three-point increase in our overall Net Promoter Score. During the month of November, amid an unprecedented government shutdown and real-time flight reductions, we had the best NPS month in the company's history. This is a testament to our customer focus, decisive actions, customer-friendly policies, and commitment to transparent communication, especially during disruptions. Toby will share in more detail the specific actions we took to produce these customer-friendly results.
Brett Hart: Thank you, Scott, and good morning. While 2025 presented a challenging macro backdrop for the industry, we remain laser-focused on the customer experience and on building brand loyalty. Continued investments in the travel experience, communication, and reliability helped us navigate disruption and deliver for our customers. Our strong Net Promoter Scores for the year highlight the care and consistency built into the United travel experience. Despite the operational headwinds of the year, we finished 2025 with an almost three-point increase in our overall Net Promoter Score. During the month of November, amid an unprecedented government shutdown and real-time flight reductions, we had the best NPS month in the company's history. This is a testament to our customer focus, decisive actions, customer-friendly policies, and commitment to transparent communication, especially during disruptions. Toby will share in more detail the specific actions we took to produce these customer-friendly results.
Speaker #3: Continued investments in the travel experience, communication, and reliability helped us navigate disruption and deliver to our customers. Our strong net promoter scores for the year highlight the care and consistency built into the United travel experience.
We also continue to innovate and in the fourth quarter, we introduce new features and more personalized updates and our award-winning United app, including enhanced mobile bag, tracking virtual gate real time boarding updates and more detailed arrival information.
These enhancements are designed to improve transparency, save customers, time to provide clearer real-time communication at Key moments of the journey.
Speaker #3: Despite the operational headwinds of the year, we finished 2025 with an almost 3-point increase in our overall Net Promoter Score. And during the month of November, amid an unprecedented government shutdown and real-time flight reductions, we had the best NPS month in the company's history.
With more than 85% of customers, using the United app, on the day of travel, another 1 of our competitive advantages and we are confident that these Investments are meaningfully. Enhancing the United experience, earning customer trust at every touch point and winning for any loyal customers.
Speaker #3: This is a testament to our customer focus, decisive actions, and customer-friendly policies, and commitment to transparent communication, especially during disruptions. Toby will share in more detail the specific actions we took to produce these customer-friendly results.
On labor. We are currently an active negotiations with 4 of our labor unions. We look forward to reaching industry-leading contracts, with these groups and will share more when able
we have a bright 2026 ahead of us.
And I want to thank our employees, for the important work, they do every day.
Speaker #3: We also continue to innovate and, in the fourth quarter, we introduced new features and more personalized updates in our award-winning United app, including enhanced mobile bag tracking, virtual gate real-time boarding updates, and more detailed arrival information.
Brett Hart: We also continue to innovate, and in Q4, we introduced new features and more personalized updates in our award-winning United app, including enhanced mobile bag tracking, virtual gate real-time boarding updates, and more detailed arrival information. These enhancements are designed to improve transparency, save customers' time, and provide clearer, real-time communication at key moments of the journey. With more than 85% of customers using the United app on the day of travel, another one of our competitive advantages, and we are confident that these investments are meaningfully enhancing the United experience, earning customer trust at every touchpoint and winning brand-loyal customers. On labor, we are currently in active negotiations with four of our labor unions. We look forward to reaching industry-leading contracts with these groups and will share more when able.
We also continue to innovate, and in Q4, we introduced new features and more personalized updates in our award-winning United app, including enhanced mobile bag tracking, virtual gate real-time boarding updates, and more detailed arrival information. These enhancements are designed to improve transparency, save customers' time, and provide clearer, real-time communication at key moments of the journey. With more than 85% of customers using the United app on the day of travel, another one of our competitive advantages, and we are confident that these investments are meaningfully enhancing the United experience, earning customer trust at every touchpoint and winning brand-loyal customers. On labor, we are currently in active negotiations with four of our labor unions. We look forward to reaching industry-leading contracts with these groups and will share more when able.
I am proud to say they will be receiving over 700 million in well-deserved profit sharing for 2025.
Their resilience and shared commitment to our values. And customers are what make United strong.
I now hand it over to Toby to discuss our operation.
Speaker #3: These enhancements are designed to improve transparency, save customers time, and provide clearer, real-time communication at key moments of the journey. With more than 85% of customers using the United app on the day of travel—another one of our competitive advantages—we are confident that these investments are meaningfully enhancing the United experience, earning customer trust at every touchpoint and winning brand-loyal customers.
Thank you, Brett, and I'm happy to join you all this on. This morning's call at United. We're proud of our no excuses culture. And last year, it was really put to the test as the United operations team confronted. A wide array of challenges outside of our control.
Speaker #3: On labor, we are currently in active negotiations with four of our labor unions. We look forward to reaching industry-leading contracts with these groups and will share more when able.
I'm so proud of how the team responded and delivered for our customers capitalizing on investment. In our people, new tools, and other Innovations allowed us to be nimble and react quickly to capacity, directors from the FAA and to recover faster and stronger during other irregular operations than ever before.
Speaker #3: We have a bright 2026 ahead of us. And I want to thank our employees for the important work they do every day. I am proud to say they will be receiving over $700 million in well-deserved profit sharing for 2025.
Brett Hart: We have a bright 2026 ahead of us, and I want to thank our employees for the important work they do every day. I am proud to say they will be receiving over $700 million in well-deserved profit sharing for 2025. Their resilience and shared commitment to our values and customers are what make United strong. I now hand it over to Toby to discuss our operation.
We have a bright 2026 ahead of us, and I want to thank our employees for the important work they do every day. I am proud to say they will be receiving over $700 million in well-deserved profit sharing for 2025. Their resilience and shared commitment to our values and customers are what make United strong. I now hand it over to Toby to discuss our operation.
As a result, we had the highest heat completion factor in our history. And number 1 on the big, 3-legged carriers in 2025, in fact, at O'Hare, in 2025, we canceled at half the seats rate of our largest competitor. If you're a record, 189 million passengers, and ranked number 1 in Star DC, for the second year, in a row.
Speaker #3: Their resilience and shared commitment to our values and customers are what make United strong. I now hand it over to Toby to discuss our
Speaker #3: operation. Thank you, Brett.
Toby Enqvist: Thank you, Brett, and I'm happy to join you all on this morning's call. At United, we're proud of our no-excuses culture, and last year, it was really put to the test as the United operations team confronted a wide array of challenges outside of our control. I'm so proud of how the team responded and delivered for our customers. Capitalizing on investment in our people, new tools, and other innovations allowed us to be nimble and react quickly to capacity directives from the FAA and to recover faster and stronger during other irregular operations than ever before. As a result, we had the highest seat completion factor in our history and number one of the big three legacy carriers in 2025. In fact, at O'Hare in 2025, we canceled half the seat rate of our largest competitor.
Toby Enqvist: Thank you, Brett, and I'm happy to join you all on this morning's call. At United, we're proud of our no-excuses culture, and last year, it was really put to the test as the United operations team confronted a wide array of challenges outside of our control. I'm so proud of how the team responded and delivered for our customers. Capitalizing on investment in our people, new tools, and other innovations allowed us to be nimble and react quickly to capacity directives from the FAA and to recover faster and stronger during other irregular operations than ever before. As a result, we had the highest seat completion factor in our history and number one of the big three legacy carriers in 2025. In fact, at O'Hare in 2025, we canceled half the seat rate of our largest competitor.
The year United. Ranked number 2 in on-time. Departures and number 2 in cancellations. A United Express operation. Delivered, 134 days of perfect completion. This is a remarkable performance in the face of the outside challenges that we face at Newark and staff at challenges at the ATC.
Speaker #1: And I'm happy to join you all on this morning's call. At United, we're proud of our no-excuses culture. And last year, it was really put to the test as the United operations team confronted a wide array of challenges outside of our control.
Beginning in the early November the FAA directed Airlines to temporarily reduce departures at 40 major. Airports due to Staffing and system constraints from the prolonged US Government shutdown.
Speaker #1: I'm so proud of how the team responded and delivered for our customers. Capitalizing on investment in our people, new tools, and other innovations allowed us to be nimble and react quickly to capacity directives from the FAA, and to recover faster and stronger during other irregular operations than ever before.
We work closely with FAA leadership to swiftly. Implement, the reductions. And we want to thank them for their partnership.
As united, we were intentional with how we made these cuts from the start, our priority was protecting the Integrity of our Network. We made a clear decision not to cut the Long Haul International and have to have flying.
Speaker #1: As a result, we had the highest seat completion factor in our history, and number one of the big three legacy carriers in 2025. In fact, at O'Hare in 2025, we canceled at half the seat rate of our largest competitor.
Those flights are the backbone of our Network and aided in retaining connectivity and flexibility for our customers.
Speaker #1: We flew a record 189 million passengers and ranked number one in Star D0 for the second year in a row. For the year, United ranked number two in on-time departures and number two in cancellations. A United Express operation delivered 134 days of perfect completion.
Toby Enqvist: We flew a record 189 million passengers and ranked number one in Star D0 for the second year in a row. For the year, United ranked number two in on-time departures and number two in cancellations. Our United Express operation delivered 134 days of perfect completion. This is a remarkable performance in the face of the outside challenges that we faced at Newark and staffing challenges at the ATC. Beginning in the early November, the FAA directed airlines to temporarily reduce departures at 40 major airports due to staffing and system constraints from the prolonged US government shutdown. We worked closely with FAA leadership to swiftly implement the reductions, and we want to thank them for their partnership. At United, we were intentional with how we made these cuts. From the start, our priority was protecting the integrity of our network.
We flew a record 189 million passengers and ranked number one in Star D0 for the second year in a row. For the year, United ranked number two in on-time departures and number two in cancellations. Our United Express operation delivered 134 days of perfect completion. This is a remarkable performance in the face of the outside challenges that we faced at Newark and staffing challenges at the ATC. Beginning in the early November, the FAA directed airlines to temporarily reduce departures at 40 major airports due to staffing and system constraints from the prolonged US government shutdown. We worked closely with FAA leadership to swiftly implement the reductions, and we want to thank them for their partnership. At United, we were intentional with how we made these cuts. From the start, our priority was protecting the integrity of our network.
We focus on the reductions where we could minimize customer impact with the majority of caps. Concentrated on Regional flying, and non-op domestic routes with smaller. Narrow body aircraft.
Speaker #1: This is a remarkable performance in the face of the outside challenges that we faced at Newark and Stafford Challenges at the ATC. Beginning in the early November, the FAA-directed airlines have temporarily reduced departures at 40 major airports due to staffing and system constraints from the prolonged US government shutdown.
In many cases that meant trimming, frequency on routes, where there were multiple daily options rather than eliminating connectivity altogether, where we could be Consolidated, flying fewer departure with larger, aircraft to move the same number of customer more efficiently, and reducing further disruption.
Even with these changes total cancellations were only approximately 4% of the purchase during Peak periods and had a minimal impact to our capacity in the quarter.
Speaker #1: We worked closely with FAA leadership to swiftly implement the reductions, and we want to thank them for their partnership. At United, we were intentional with how we made these cuts.
Operationally. I'm very proud of how our team managed. The rolling schedule changes, were no strangers to managing through irregular operation, and that has contributed to the speed and flexibility in which we respond to these situations.
Speaker #1: From the start, our priority was protecting the integrity of our network. We made a clear decision not to cut long-haul international and hub-to-hub flying.
Toby Enqvist: We made a clear decision not to cut long-haul international and hub-to-hub flying. Those flights are the backbone of our network and aided in retaining connectivity and flexibility for our customers. We focused on the reductions where we could minimize customer impact, with a majority of cuts concentrated on regional flying and non-hub domestic routes with smaller narrow-body aircraft. In many cases, that meant trimming frequency on routes where there were multiple daily options rather than eliminating connectivity altogether. Where we could, we consolidated flying in fewer departures with larger aircraft to move the same number of customers more efficiently and reducing further disruption. Even with these changes, total cancellations were only approximately 4% of departures during peak periods and had a minimal impact on our capacity in the quarter. Operationally, I'm very proud of how our team managed the rolling schedule changes.
We made a clear decision not to cut long-haul international and hub-to-hub flying. Those flights are the backbone of our network and aided in retaining connectivity and flexibility for our customers. We focused on the reductions where we could minimize customer impact, with a majority of cuts concentrated on regional flying and non-hub domestic routes with smaller narrow-body aircraft. In many cases, that meant trimming frequency on routes where there were multiple daily options rather than eliminating connectivity altogether. Where we could, we consolidated flying in fewer departures with larger aircraft to move the same number of customers more efficiently and reducing further disruption. Even with these changes, total cancellations were only approximately 4% of departures during peak periods and had a minimal impact on our capacity in the quarter. Operationally, I'm very proud of how our team managed the rolling schedule changes.
we published cancellations several days in advance to give peace of mind to our customers and directly communicated, any changes through our app and website and focus on
Speaker #1: Those flights are the backbone of our network, and aided in retaining connectivity and flexibility for our customers. We focused on the reductions where we could minimize customer impact, with the majority of cuts concentrated on regional flying and non-hub domestic routes with smaller, nearby aircraft.
Notably nearly 60% of our customers flights were canceled, or re-booked within 4 hours of the original departure time.
Even if their flight ultimately operated and that included non-refundable and basic economy tickets. It was the right thing to do.
Speaker #1: In many cases, that meant trimming frequency on routes where there were multiple daily options, rather than eliminating connectivity altogether. Where we could, we consolidated flying into fewer departures with larger aircraft to move the same number of customers more efficiently and reduce further disruption.
Thank you to each United employee, who helped us successfully navigate these real-time schedule changes.
Speaker #1: Even with these changes, total cancellations were only approximately 4% of departures during peak periods and had a minimal impact to our capacity in the quarter.
Speaker #1: Operationally, I'm very proud of how our team managed the rolling schedule changes. We're no strangers to managing through irregular operations, and that has contributed to the speed and flexibility with which we respond to these situations.
We close out the year on a high note, United delivered the best operation in the industry of the holidays ranking. Number 1, and on-time departure and on-time arrivals. We canceled less than 1% of our flights during the holidays and following the Caribbean airspace closure. In the early 2026, we added 10% more seats over a 3-day period to help customers return home. And
Toby Enqvist: We're no strangers to managing through irregular operation, and that has contributed to the speed and flexibility in which we respond to these situations. We published cancellations several days in advance to give peace of mind to our customers and directly communicated any changes through our app and website, and focused on reaccommodating customers wherever possible as quickly as able. Notably, nearly 60% of our customers whose flights were canceled were rebooked within four hours of the original departure time. Any customers traveling during this period could request a refund, even if their flight ultimately operated, and that included non-refundable and Basic Economy tickets. It was the right thing to do. Thank you to each United employee who helped us successfully navigate these real-time schedule changes. We closed out the year on a high note.
We're no strangers to managing through irregular operation, and that has contributed to the speed and flexibility in which we respond to these situations. We published cancellations several days in advance to give peace of mind to our customers and directly communicated any changes through our app and website, and focused on re-accommodating customers wherever possible as quickly as able. Notably, nearly 60% of our customers whose flights were canceled were rebooked within four hours of the original departure time. Any customers traveling during this period could request a refund, even if their flight ultimately operated, and that included non-refundable and Basic Economy tickets. It was the right thing to do. Thank you to each United employee who helped us successfully navigate these real-time schedule changes. We closed out the year on a high note.
Any way to close out the busy holiday season.
Press 25 is a year. We should all be proud of, especially given the multiple headwinds United in the industry phase.
Speaker #1: We published cancellations several days in advance to give peace of mind to our customers, and directly communicated any changes through our app and website, and focused on reaccommodating customers wherever possible as quickly as able.
Speaker #1: Notably, nearly 60% of our customers whose flights were canceled were rebooked within four hours of the original departure time. Any customers traveling during this period could request a refund, even if their flight ultimately operated, and that included non-refundable and Basic Economy tickets.
Running a strong operation sets the foundation for delivering on our financial commitments and helps attract the brand loyal customers that we speak so much about thank you again to our incredible team here at United. And I look forward to building on our momentum in 2026 together. Not a year Andrew to speak about the revenue environment.
Thanks, Toby. United's Top Line, revenues, increased 4.8% to 15.4 billion in the quarter on a 6 and a half percent increase in capacity year-over-year.
Speaker #1: It was the right thing to do. Thank you to each United employee who helped us successfully navigate these real-time schedule changes. We closed out the year on a high note.
Consolidated trials. And for the quarter was down 1.6% Q4 was United's highest revenue quarter ever.
Speaker #1: United delivered the best operation in the industry over the holidays, ranking number one in on-time departures and on-time arrivals. We canceled less than 1% of our flights during the holidays and, following the Caribbean airspace closure in early 2026, we added 10% more seats over a three-day period to help customers return home.
Toby Enqvist: United delivered the best operation in the industry over the holidays, ranking number one in on-time departures and on-time arrivals. We canceled less than 1% of our flights during the holidays, and following the Caribbean airspace closure in the early 2026, we added 10% more seats over a three-day period to help customers return home, an outstanding way to close out the busy holiday season. 2025 is a year we should all be proud of, especially given the multiple headwinds United and the industry face. Running a strong operation sets the foundation for delivering on our financial commitments and helps attract the brand-loyal customers that we speak so much about. Thank you again to our incredible team here at United, and I look forward to building on our momentum in 2026 together. Now to you, Andrew, to speak about the revenue environment.
United delivered the best operation in the industry over the holidays, ranking number one in on-time departures and on-time arrivals. We canceled less than 1% of our flights during the holidays, and following the Caribbean airspace closure in the early 2026, we added 10% more seats over a three-day period to help customers return home, an outstanding way to close out the busy holiday season. 2025 is a year we should all be proud of, especially given the multiple headwinds United and the industry face. Running a strong operation sets the foundation for delivering on our financial commitments and helps attract the brand-loyal customers that we speak so much about. Thank you again to our incredible team here at United, and I look forward to building on our momentum in 2026 together. Now to you, Andrew, to speak about the revenue environment.
Speaker #1: An outstanding way to close out the busy holiday season. 2025 is a year we should all be proud of, especially given the multiple headwinds United and the industry face.
Premium cabins, outperformed main cabin. Once again in the quarter, premium cabin revenue for up to 12% year-over-year on a 7% more capacity. Pzm for premium cabins outperformed. The main cabin by almost 10 points, in Q4 main cabin, revenues were up 1% on a 6% more capacity for the quarter for the year premium revenues increased approximately 11% while standard and basic economy revenues were down approximately 5%.
Speaker #1: Running a strong operation sets the foundation for delivering on our financial commitments and helps attract the brand-loyal customers that we speak so much about.
Speaker #1: Thank you again to our incredible team here at United, and I look forward to building on our momentum in 2026 together—not a year, Andrew, to speak about the revenue.
We did see a nice bounce back in our International, flying in Q4, after a challenge in, Q3 the Pacific and the Atlantic performed. Well, with prasam, turn in positive in both regions, Latin America. On the other hand had yet another challenge in quarter.
Speaker #1: environment. Thanks, Toby.
Andrew Nocella: Thanks, Toby. United's top-line revenues increased 4.8% to $15.4 billion in the quarter on a 6.5% increase in capacity year-over-year. TRASM for the quarter was down 1.6%. Q4 was United's highest revenue quarter ever. Premium cabins outperformed Main Cabin once again in the quarter. Premium cabin revenue were up 12% year-over-year on a 7% more capacity. PRASM for premium cabins outperformed the Main Cabin by almost 10 points in Q4. Main Cabin revenues were up 1% on a 6% more capacity for the quarter. For the year, premium revenues increased approximately 11%, while standard and Basic Economy revenues were down approximately 5%. We did see a nice bounce back in our international flying in Q4 after a challenge in Q3. The Pacific and the Atlantic performed well, with PRASM turning positive in both regions. Latin America, on the other hand, had yet another challenging quarter.
Andrew Nocella: Thanks, Toby. United's top-line revenues increased 4.8% to $15.4 billion in the quarter on a 6.5% increase in capacity year-over-year. TRASM for the quarter was down 1.6%. Q4 was United's highest revenue quarter ever. Premium cabins outperformed Main Cabin once again in the quarter. Premium cabin revenue were up 12% year-over-year on a 7% more capacity. PRASM for premium cabins outperformed the Main Cabin by almost 10 points in Q4. Main Cabin revenues were up 1% on a 6% more capacity for the quarter. For the year, premium revenues increased approximately 11%, while standard and Basic Economy revenues were down approximately 5%. We did see a nice bounce back in our international flying in Q4 after a challenge in Q3. The Pacific and the Atlantic performed well, with PRASM turning positive in both regions. Latin America, on the other hand, had yet another challenging quarter.
Speaker #2: United's top-line revenues increased 4.8% to $15.4 billion in the quarter on a 6.5% increase in capacity year over year. Consolidated TRASM for the quarter was down 1.6%.
Cargo revenues for 2025 were up 1.8 billion or or 1.8 billion to 2 points up 2.1% year-over-year.
Speaker #2: Q4 was United's highest revenue quarter ever. Premium cabins outperformed main cabin once again in the quarter. Premium cabin revenue was up 12% year over year, on 7% more capacity.
To revenues for 2025, or up 9% for reination, from Global. Co-brands was up 12% for the year and 14% for the quarter, and for the third year in a row, we added over 1 million new co-brand cards.
As we look to q1 2026, we expect to see sequential Improvement the possibility that all regions have positive raasm year over year.
Speaker #2: Trends for premium cabins outperformed the main cabin by almost 10 points in Q4. Main cabin revenues were up 1%, on 6% more capacity for the quarter.
Last year did start very strong from a good perspective but then dropped off sharply towards the back, third of January and for the rest of the quarter.
Speaker #2: For the year, premium revenues increased approximately 11%, while standard and basic economy revenues were down approximately 5%. We did see a nice bounce back in our international flying in Q4 after a challenge in Q3.
Based on what we've seen so far this year, bookings and yields are outpatient with strong start from last year and we're hopeful that the momentum will continue which could admittedly cause our guidance to feel a bit conservative.
Speaker #2: The Pacific and the Atlantic performed well, with Tries turning positive in both regions. Latin America, on the other hand, had yet another challenge in the quarter.
We also expect the domestic capacity environment to be quite favorable, for the first half of 2026 with small, but meaningful amount of perennial unprofitable capacity by others, leaving the market.
Speaker #2: Cargo revenues for 2025 were up $1.8 billion, or 1.8% to 2.1% year over year. Loyalty revenues for 2025 were up 9%. Remuneration from global co-brands was up 12% for the year and 14% for the quarter, and for the third year in a row, we added over 1 million new co-brand cards.
Andrew Nocella: Cargo revenues for 2025 were up $1.8 billion, up 2.1% year-over-year. Loyalty revenues for 2025 were up 9%. Remuneration from global co-brands was up 12% for the year and 14% for the quarter. For the third year in a row, we added over 1 million new co-brand cards. As we look to Q1 2026, we expect to see sequential improvement with the possibility that all regions have positive RASM year-over-year. Last year did start very strong from a booking perspective, but then dropped off sharply towards the back third of January and for the rest of the quarter. Based on what we've seen so far this year, bookings and yields are outpacing the strong start from last year, and we're hopeful that the momentum will continue, which could admittedly cause our guidance to feel a bit conservative.
Cargo revenues for 2025 were up $1.8 billion, up 2.1% year-over-year. Loyalty revenues for 2025 were up 9%. Remuneration from global co-brands was up 12% for the year and 14% for the quarter. For the third year in a row, we added over 1 million new co-brand cards. As we look to Q1 2026, we expect to see sequential improvement with the possibility that all regions have positive RASM year-over-year. Last year did start very strong from a booking perspective, but then dropped off sharply towards the back third of January and for the rest of the quarter. Based on what we've seen so far this year, bookings and yields are outpacing the strong start from last year, and we're hopeful that the momentum will continue, which could admittedly cause our guidance to feel a bit conservative.
However, in q1 premium revenues, continue to lead the way while standard main cabin seats. Continue to show some weakness. This main cabin weakness is due to unprofitable capacity, offered by other large spilled, man, US carriers. As ulcc capacity becomes less relevant.
Speaker #2: As we look to Q1 2026, we expect to see sequential improvement, with the possibility that all regions have positive RASM year over year.
Speaker #2: Last year did start very strong from a beginner's perspective, but then dropped off sharply towards the back third of January and for the rest of the quarter.
We also have a Tailwind in New York later. This spring would operations run in. Well, we expect New York to give United a unique rather than Tailwind versus the industry. Considering the events last spring, but the number of flights. Now limited to what the runways can accommodate our customers can and our book in income,
Confidence.
Speaker #2: Based on what we've seen so far this year, bookings and yields are outpacing the strong start from last year, and we're hopeful that the momentum will continue, which could admittedly cause our guidance to feel a bit conservative.
We did make aggressive Latin capacity adjustments for q1 to correct underperformance. We saw in Q3 and Q4
However, recent Julio geopolitical events are having a measurable negative impact on bookings. In the Caribbean, yet we still have a chance at positive, Latin raasm depending on when concerned dissipates
Speaker #2: We also expect the domestic capacity environment to be quite favorable for the first half of 2026, with a small but meaningful amount of perennial unprofitable capacity by others leaving the market.
Andrew Nocella: We also expect the domestic capacity environment to be quite favorable for the first half of 2026, with a small but meaningful amount of perennial unprofitable capacity by others leaving the market. However, in Q1, premium revenues continue to lead the way, while standard main cabin seats continue to show some weakness. This main cabin weakness is due to unprofitable capacity offered by other large spill-demand US carriers as ULCC capacity becomes less relevant. We also have a tailwind in Newark later this spring when operations run well. We expect Newark to give United a unique RASM tailwind versus the industry considering the events last spring. But the number of flights, now limited to what the runways can accommodate, our customers can and are booking in confidence. We did make aggressive Latin capacity adjustments for Q1 to correct underperformance we saw in Q3 and Q4.
We also expect the domestic capacity environment to be quite favorable for the first half of 2026, with a small but meaningful amount of perennial unprofitable capacity by others leaving the market. However, in Q1, premium revenues continue to lead the way, while standard main cabin seats continue to show some weakness. This main cabin weakness is due to unprofitable capacity offered by other large spill-demand US carriers as ULCC capacity becomes less relevant. We also have a tailwind in Newark later this spring when operations run well. We expect Newark to give United a unique RASM tailwind versus the industry considering the events last spring. But the number of flights, now limited to what the runways can accommodate, our customers can and are booking in confidence. We did make aggressive Latin capacity adjustments for Q1 to correct underperformance we saw in Q3 and Q4.
Speaker #2: However, in Q1, premium revenues continue to lead the way, while standard main cabin seats continue to show some weakness. This main cabin weakness is due to unprofitable capacity offered by other large spill-demand U.S. carriers, as ULCC capacity becomes less relevant.
All United hubs were once again profitable in Q4. And for all of 2025 a fully profitable Hub framework. Allows United to invest incremental capacity on a solid foundation. We think we're only 1 of 2, large US carriers, that can say all their hubs were profitable in 2025. And these same 2, carriers are expected to represent the bulk of Industry profits in the year.
Speaker #2: We also have a tailwind in Newark later this spring, when operations are running well. We expect Newark to give United a unique, ride-them tailwind versus the industry, considering the events last spring.
We also believe that of the 3 a hubs located in Chicago, only United Hub with profitable in 2025 and we expect it will be profitable again once again in 2026.
Speaker #2: But with the number of flights now limited to what the runways can accommodate, our customers can and are booking in confidence. We did make aggressive Latin capacity adjustments for Q1 to correct underperformance we saw in Q3 and Q4.
Today, I also wanted to talk about our commercial Focus points for 2026 to drive higher, RMS and margins.
Speaker #2: However, recent geopolitical events are having a measurable negative impact on bookings in the Caribbean, yet we still have a chance at positive Latin rides, depending on when concern dissipates.
Andrew Nocella: However, recent geopolitical events are having a measurable negative impact on bookings in the Caribbean. Yet, we still have a chance at positive Latin RASM depending on when concern dissipates. All United hubs were once again profitable in Q4 and for all of 2025. A fully profitable hub framework allows United to invest incremental capacity on a solid foundation. We think we're only one of two large US carriers that can say all their hubs were profitable in 2025, and these same two carriers are expected to represent the bulk of industry profits in the year. We also believe that of the three airline hubs located in Chicago, only United's hub was profitable in 2025, and we expect it will be profitable again once again in 2026. Today, I also wanted to talk about our commercial focus points for 2026 to drive higher RASMs and margins.
However, recent geopolitical events are having a measurable negative impact on bookings in the Caribbean. Yet, we still have a chance at positive Latin RASM depending on when concern dissipates. All United hubs were once again profitable in Q4 and for all of 2025. A fully profitable hub framework allows United to invest incremental capacity on a solid foundation. We think we're only one of two large US carriers that can say all their hubs were profitable in 2025, and these same two carriers are expected to represent the bulk of industry profits in the year. We also believe that of the three airline hubs located in Chicago, only United's hub was profitable in 2025, and we expect it will be profitable again once again in 2026. Today, I also wanted to talk about our commercial focus points for 2026 to drive higher RASMs and margins.
Orders to other parts of the year. As a result of this shift, we expect the fastest growing quarter for United's International capacity, to be q1 in 2026 with minimal growth, in Q3, flattened capacity across the quarters. Would have not been correct in 2019, but it is today.
Speaker #2: All United hubs were once again profitable in Q4, and for all of 2025. A fully profitable hub framework allows United to invest incremental capacity on a solid foundation.
Speaker #2: We think we're only one of two large U.S. carriers that can say all their hubs were profitable in 2025, and these same two carriers are expected to represent the bulk of industry profits in the year.
Second Focus will be enhanced merchandising of our growing product lineup. We plan to increase segmentation and customer choices with our changes, which will announce an early 2026. This effort, includes the largest redesign of the united.com in a decade.
Speaker #2: We also believe that, of the three airline hubs located in Chicago, only United's hub was profitable in 2025, and we expect it will be profitable once again in 2026.
Speaker #2: Today, I also wanted to talk about our commercial focus points for 2026 to drive higher RASM and margins. Our first focus will be new seasonal capacity shaping of our long-haul schedule.
Our third Focus will be enhanced connectivity. We will soon. Approached the connectivity goals we set in 2021 with the United. Next plan by 2027 as a result, 2025 represents United's high water mark on domestic capacity growth. As we draw this very successful part of the United next plan to an end.
Andrew Nocella: Our first focus will be new seasonal capacity shaping of our long-haul schedule. Peak demand for international travel has spread from the second, and third quarters to other parts of the year. As a result of this shift, we expect the fastest growing quarter for United's international capacity to be Q1 in 2026, with minimal growth in Q3. Flattening capacity across the quarters would have not been correct in 2019, but it is today. A second focus will be enhanced merchandising of our growing product lineup. We plan to increase segmentation and customer choices with our changes, which we'll announce in early 2026. This effort includes the largest redesign of United.com in a decade. Our third focus will be enhanced connectivity. We will soon approach the connectivity goals we set in 2021 with the United Next Plan by 2027.
Our first focus will be new seasonal capacity shaping of our long-haul schedule. Peak demand for international travel has spread from the second, and third quarters to other parts of the year. As a result of this shift, we expect the fastest growing quarter for United's international capacity to be Q1 in 2026, with minimal growth in Q3. Flattening capacity across the quarters would have not been correct in 2019, but it is today. A second focus will be enhanced merchandising of our growing product lineup. We plan to increase segmentation and customer choices with our changes, which we'll announce in early 2026. This effort includes the largest redesign of United.com in a decade. Our third focus will be enhanced connectivity. We will soon approach the connectivity goals we set in 2021 with the United Next Plan by 2027.
Speaker #2: Peak demand for international travel has spread from the second and third quarters to other parts of the year. As a result of this shift, we expect the fastest growth quarter for United's international capacity to be Q1 in 2026, with minimal growth in Q3.
Our fourth Focus will be Mileage, Plus enhancing the growth potential in the coming years via drawing a larger distinction between true loyalty, programs and reward programs offered by others. We have a legacy contract that continues with our banking Partners regarding core economics, but we still have plenty of ideas to abuse growth in Revenue, in the meantime,
Speaker #2: Platinum capacity across the quarters would not have been corrected in 2019, but it is today. A second focus will be enhanced merchandising of our grown product lineup.
Speaker #2: We plan to increase segmentation and customer choices with our changes, which we'll announce in early 2026. This effort includes the largest redesign of United.com in a decade.
And premiumization is our fifth focus in 2026. We've had a this premium Focus for almost 8 years now. And while our lead is now being followed by a range of other US carriers, it's United 7 business Centric, hubs that, dictate this plan and why we expect to be more successful at it.
Speaker #2: Our third focus will be enhanced connectivity. We will soon approach the connectivity goals we set in 2021 with the United Next plan by 2027.
Speaker #2: As a result, 2025 represents United's high-water mark on domestic capacity growth, as we draw this very successful part of the United Next Plan to an end.
Andrew Nocella: As a result, 2025 represents United's high watermark on domestic capacity growth as we draw this very successful part of the United Next Plan to an end. Our fourth focus will be MileagePlus, enhancing the growth potential in the coming years via drawing a larger distinction between true loyalty programs and reward programs offered by others. We have a legacy contract that continues with our banking partners regarding core economics, but we still have plenty of ideas to boost growth and revenue in the meantime. And premiumization is our fifth focus in 2026. We've had this premium focus for almost eight years now, and while our lead is now being followed by a range of other US carriers, it's United's seven business-centric hubs that dictate this plan and why we expect to be more successful at it.
As a result, 2025 represents United's high watermark on domestic capacity growth as we draw this very successful part of the United Next Plan to an end. Our fourth focus will be MileagePlus, enhancing the growth potential in the coming years via drawing a larger distinction between true loyalty programs and reward programs offered by others. We have a legacy contract that continues with our banking partners regarding core economics, but we still have plenty of ideas to boost growth and revenue in the meantime. And premiumization is our fifth focus in 2026. We've had this premium focus for almost eight years now, and while our lead is now being followed by a range of other US carriers, it's United's seven business-centric hubs that dictate this plan and why we expect to be more successful at it.
Last spring, we announced our new elevated interior for our widebody Jets, including the new new United. Polaris Studio seat Polaris seats with doors. Along with countless, other upgrades to the stock product for elevated, 787s are now being prepared for delivery in the coming weeks. And we expect 16 more for the remainder of 2026. These aircraft along with other new deliveries will result in our premium capacity. Growth, accounted for more than half our growth in 26.
Speaker #2: Our fourth focus will be MileagePlus. Enhancing the growth potential in the coming years via drawing a larger distinction between true loyalty programs and reward programs offered by others.
Speaker #2: We have a legacy contract that continues with our banking partners regarding core economics, but we still have plenty of ideas to boost growth in revenue in the meantime.
Speaker #2: And premiumization is our fifth focus in 2026. We've had this premium focus for almost eight years now, and while our lead is now being followed by a range of other U.S. carriers, it's United's seven business-centric hubs that dictate this plan and why we expect to be more successful at it.
We look forward to another Innovative set of products and aircraft announcements in 2026. United is defining What premium means for all customers, no matter where they sit or what they pay or United section of your interior mods, and starlink installs are now moving at PACE, and we'll be completed in 2027, creating an existent premium product. We hope for when we announce United next in 2021.
A quick but important preview for 2027. Is our long-term focus on Gage while gauge is not a focus in 26. It will be in 27 and Beyond is a much higher percentage of our growth equation.
Speaker #2: Last spring, we announced our new elevated interior for our wide-body jets, including the new United Polaris Studio C, Polaris seats with doors, along with countless other upgrades to the soft product. Four elevated 787s are now being prepared for delivery in the coming weeks, and we expect 16 more for the remainder of 2026.
Andrew Nocella: Last spring, we announced our new elevated interior for our wide-body jets, including the new United Polaris Studio seat, Polaris seats with doors, along with countless other upgrades to the soft product. Four elevated 787s are now being prepared for delivery in the coming weeks, and we expect 16 more for the remainder of 2026. These aircraft, along with other new deliveries, will result in our premium capacity growth accounting for more than half our growth in 2026. We look forward to another innovative set of products and aircraft announcements in 2026. United is defining what premium means for all customers, no matter where they sit or what they pay. Our United Signature Interior Mods and Starlink installs are now moving at that pace and will be completed in 2027, creating a consistent premium product we hope for when we announce United Next in 2021.
Last spring, we announced our new elevated interior for our wide-body jets, including the new United Polaris Studio seat, Polaris seats with doors, along with countless other upgrades to the soft product. Four elevated 787s are now being prepared for delivery in the coming weeks, and we expect 16 more for the remainder of 2026. These aircraft, along with other new deliveries, will result in our premium capacity growth accounting for more than half our growth in 2026. We look forward to another innovative set of products and aircraft announcements in 2026. United is defining what premium means for all customers, no matter where they sit or what they pay. Our United Signature Interior Mods and Starlink installs are now moving at that pace and will be completed in 2027, creating a consistent premium product we hope for when we announce United Next in 2021.
Speaker #2: These aircraft, along with other new deliveries, will result in our premium capacity growth accounting for more than half our growth in ’26. We look forward to another innovative set of products and aircraft announcements in 2026.
Most of our commercial Focus areas in 26. Of course, latter up to decommodify a brand loyal, customers we like our plan we remain focused on doing more of the same in the coming years with that. I'll thanks to. I offer my thanks to the entire United Team for a great, but challenge in 2025 and headed off to Mike to talk about our financial results. Mike
Speaker #2: United is defining what premium means for all customers, no matter where they sit or what they pay. Our United Signature interior mods and Starlink installs are now moving at pace, and we'll be completed in 2027, creating the consistent premium product we hoped for when we announced United Next in 2021.
Thanks Andrew. We closed out 2025 on a high note and delivered fourth quarter, earnings per share of 3.10 within our guidance range of 3 to 3.50 and that's despite a 250 million impact to our pre-tax earnings, from the government shutdown.
Speaker #2: A quick but important preview for 2027 is our long-term focus on Gage. While Gage is not a focus in '26, it will be in '27 and beyond as a much higher percentage of our growth equation.
Andrew Nocella: A quick but important preview for 2027 is our long-term focus on gauge. While gauge is not a focus in 2026, it will be in 2027 and beyond as a much higher percentage of our growth equation. Most of our commercial focus areas in 2026, of course, ladder up to decommoditizing our product, providing consumers with more choices, and winning a higher share of brand-loyal customers. We like our plan. We remain focused on doing more of the same in the coming years. With that, I'll offer my thanks to the entire United team for a great but challenging 2025 and hand it off to Mike to talk about our financial results. Mike.
A quick but important preview for 2027 is our long-term focus on gauge. While gauge is not a focus in 2026, it will be in 2027 and beyond as a much higher percentage of our growth equation. Most of our commercial focus areas in 2026, of course, ladder up to decommoditizing our product, providing consumers with more choices, and winning a higher share of brand-loyal customers. We like our plan. We remain focused on doing more of the same in the coming years. With that, I'll offer my thanks to the entire United team for a great but challenging 2025 and hand it off to Mike to talk about our financial results. Mike?
2025 was a challenging year for the airline industry between macro volatility and Industrial challenges at Newark each quarter of 2025 experienced, a material event. The pressure earnings in further, widened to Performance gap between the industry leaders and laggers.
Speaker #2: Most of our commercial focus areas in '26, of course, ladder up to decommoditizing our product, providing consumers with more choices, and winning a higher share of brand-loyal customers.
Our full year 2025 EPS came in at $10.62 which was slightly up versus 2024 and despite an 85 Cent headwind from our challenges at Newark.
Speaker #2: We like our plan. We remain focused on doing more of the same in the coming years. With that, I'll offer my thanks to the entire United team for a great but challenging 2025 and hand it off to Mike to talk about our financial results.
I expect we will be the only US Airline to grow EPS last year. This is an incredible proof point of United's ability to execute through times of elevated uncertainty when most of the industry, cannot
an airline with a business anchored by brand loyal, customers isn't only more profitable. It's also more resilient.
Speaker #2: Mike? Thanks, Andrew. We closed out 2025 on a high note and delivered fourth quarter earnings per share of $3.10, within our guidance range of $3.00 to $3.50. And that's despite a $250 million impact to our pre-tax earnings from the government shutdown.
Michael Leskinen: Thanks, Andrew. We closed out 2025 on a high note and delivered fourth-quarter earnings per share of $3.10 within our guidance range of $3.00 to $3.50. And that's despite a $250 million impact to our pre-tax earnings from the government shutdown. 2025 was a challenging year for the airline industry. Between macro volatility and idiosyncratic challenges at Newark, each quarter of 2025 experienced a material event that pressured earnings and further widened the performance gap between industry leaders and laggards. Our full-year 2025 EPS came in at $10.62, which was slightly up versus 2024, and despite a $0.85 headwind from our challenges at Newark. I expect we will be the only US airline to grow EPS last year. This is an incredible proof point of United's ability to execute through times of elevated uncertainty when most of the industry cannot.
Michael Leskinen: Thanks, Andrew. We closed out 2025 on a high note and delivered fourth-quarter earnings per share of $3.10 within our guidance range of $3.00 to $3.50. And that's despite a $250 million impact to our pre-tax earnings from the government shutdown. 2025 was a challenging year for the airline industry. Between macro volatility and idiosyncratic challenges at Newark, each quarter of 2025 experienced a material event that pressured earnings and further widened the performance gap between industry leaders and laggards. Our full-year 2025 EPS came in at $10.62, which was slightly up versus 2024, and despite a $0.85 headwind from our challenges at Newark. I expect we will be the only US airline to grow EPS last year. This is an incredible proof point of United's ability to execute through times of elevated uncertainty when most of the industry cannot.
Our plan is working and I'd like to thank the entire United Team for their hard work in the face of all these challenges. I particularly like to thank
Speaker #2: 2025 was a challenging year for the airline industry. Between macro volatility and idiosyncratic challenges at Newark, each quarter of 2025 experienced a material event that pressured earnings and further widened the performance gap between the industry leaders and laggards.
our Frontline flight attendants pilots and customer service Representatives through an extraordinarily difficult time during the government shutdown. You served our customers leading to the highest net promoter scores in United's history.
Over the last year, we've invested a billion dollars in the customer. And as a result, customers are taking notes.
Speaker #2: Our full year 2025 EPS came in at $10.62, which was slightly up versus 2024, and that’s despite an $0.85 headwind from our challenges at Newark.
From larger clubs to free starlink Wi-Fi, the United product offering as well as further segmentation continues to attract more and more brand loyal customers. Driving strong, Topline performance and more durable earnings.
Speaker #2: I expect we will be the only U.S. airline to grow EPS last year. This is an incredible proof point of United's ability to execute through times of elevated uncertainty when most of the industry cannot.
Speaker #2: An airline with a business anchored by brand-loyal customers isn't only more profitable; it's also more resilient. Our plan is working, and I'd like to thank the entire United team for their hard work in the face of all these challenges.
Michael Leskinen: An airline with a business anchored by brand-loyal customers isn't only more profitable; it's also more resilient. Our plan is working, and I'd like to thank the entire United team for their hard work in the face of all of these challenges. I'd particularly like to thank our frontline flight attendants, pilots, and customer service representatives. Through an extraordinarily difficult time during the government shutdown, you served our customers, leading to the highest net promoter scores in United's history. Over the last year, we've invested $1 billion in the customer, and as a result, customers are taking note. From larger clubs to free Starlink Wi-Fi, the United product offering, as well as further segmentation, continues to attract more and more brand-loyal customers, driving strong top-line performance and more durable earnings.
An airline with a business anchored by brand-loyal customers isn't only more profitable; it's also more resilient. Our plan is working, and I'd like to thank the entire United team for their hard work in the face of all of these challenges. I'd particularly like to thank our frontline flight attendants, pilots, and customer service representatives. Through an extraordinarily difficult time during the government shutdown, you served our customers, leading to the highest net promoter scores in United's history. Over the last year, we've invested $1 billion in the customer, and as a result, customers are taking note. From larger clubs to free Starlink Wi-Fi, the United product offering, as well as further segmentation, continues to attract more and more brand-loyal customers, driving strong top-line performance and more durable earnings.
Core Business in the fourth quarter or cassmac year over year was up only 0.4% bringing our full year 2025 Chasm up chasmac up to 0.4% as well.
We expect this performance to be industry-leading and will continue to drive efficiencies across the business in 2026.
Now, turning to the Outlook.
Speaker #2: I'd particularly like to thank our frontline flight attendants, pilots, and customer service representatives. Through an extraordinarily difficult time during the government shutdown, you served our customers, leading to the highest Net Promoter Scores in United's history.
Looking to the first quarter, we expect earnings per share to be between $1 and $1.50 in approximately 37% earnings Improvement. Versus the first quarter of last year at the midpoint and margin expansion year-over-year.
Speaker #2: Over the last year, we've invested $1 billion in the customer, and as a result, customers are taking note. From larger clubs to free Starlink Wi-Fi, the United product offering as well as further segmentation continues to attract more and more brand-loyal customers.
For the full year 2026, we expect earnings per share to be between 12 and 14 at the midpoint. This represents over 20% growth and implies continued margin expansion as we marched towards. Double digit margins.
Speaker #2: Driving strong top-line performance and more durable earnings. The investment in the customer has been enabled by our industry-leading efforts to drive cost efficiencies across the core business.
Michael Leskinen: The investment in the customer has been enabled by our industry-leading efforts to drive cost efficiencies across the core business. In the fourth quarter, our CASM-ex year-over-year was up only 0.4%, bringing our full-year 2025 CASM-ex up to 0.4% as well. We expect this performance to be industry-leading and will continue to drive efficiencies across the business in 2026. Now turning to the outlook. Looking to the first quarter, we expect earnings per share to be between $1.00 and $1.50, an approximately 37% earnings improvement versus the first quarter of last year at the midpoint, and margin expansion year-over-year. Building off a strong quarter for the full year 2026, we expect earnings per share to be between $12.00 and $14.00. At the midpoint, this represents over 20% growth and implies continued margin expansion as we march towards double-digit margins.
The investment in the customer has been enabled by our industry-leading efforts to drive cost efficiencies across the core business. In the fourth quarter, our CASM-ex year-over-year was up only 0.4%, bringing our full-year 2025 CASM-ex up to 0.4% as well. We expect this performance to be industry-leading and will continue to drive efficiencies across the business in 2026. Now turning to the outlook. Looking to the first quarter, we expect earnings per share to be between $1.00 and $1.50, an approximately 37% earnings improvement versus the first quarter of last year at the midpoint, and margin expansion year-over-year. Building off a strong quarter for the full year 2026, we expect earnings per share to be between $12.00 and $14.00. At the midpoint, this represents over 20% growth and implies continued margin expansion as we march towards double-digit margins.
turning to the fleet this year, we expect to take delivery of over 100 aircraft 100, narrow body, aircraft and approximately 20 wide body aircraft
According accordingly, we expect our Capital expenditures for the year to be less than 8 billion.
Speaker #2: In the fourth quarter, our CASIMAX year-over-year was up only 0.4%, bringing our full-year 2025 CASIMAX up to 0.4% as well. We expect this performance to be industry-leading and will continue to drive efficiencies across the business in 2026.
Consistent with the 7 to 9 billion. Multi-year capex guidance. We provided back in 2024
On the balance sheet.
Becoming investment grade rated is a majority is a major priority of mine. And in 2025, we made meaningful progress, towards investment. Grade metrics
Speaker #2: Now turning to the outlook. Looking to the first quarter, we expect earnings per share to be between $1.00 and $1.50, and approximately 37% earnings improvement versus the first quarter of last year at the midpoint.
we paid off 1.9 billion of our high-cost Co error debt and brought our total cost of debt down to 4.7%
Speaker #2: And margin expansion year-over-year. Building off a strong quarter, for the full year 2026 we expect earnings per share to be between $12 and $14.
Our net leverage at the end of the year, was 2.2 times as a result of our deleveraging efforts combined with our earnings power and Industry. Bifurcation, we've received 5 upgrades to our credit ratings at Moody's, S&P and Fitch over the last 13 months.
Speaker #2: At the midpoint, this represents over 20% growth, and implies continued margin expansion as we march towards double-digit margins. Turning to the fleet, this year we expect to take delivery of over 100 aircraft—100 narrow-body aircraft and approximately 20 wide-body aircraft.
United is now just 1 Notch. Below investment grade at all. 3 agencies, our highest ratings in over 25 years.
Michael Leskinen: Turning to the fleet, this year, we expect to take delivery of over 100 aircraft, 100 narrow-body aircraft, and approximately 20 wide-body aircraft. Accordingly, we expect our capital expenditures for the year to be less than $8 billion, consistent with the $7 to 9 billion multi-year CapEx guidance we provided back in 2024. On the balance sheet, becoming investment-grade rated is a major priority of mine, and in 2025, we made meaningful progress towards investment-grade metrics. We paid off $1.9 billion of our high-cost COVID-era debt and brought our total cost of debt down to 4.7%. Our net leverage at the end of the year was 2.2x. As a result of our deleveraging efforts, combined with our earnings power and industry bifurcation, we've received five upgrades to our credit ratings across Moody's, S&P, and Fitch over the last 13 months.
Turning to the fleet, this year, we expect to take delivery of over 100 aircraft, 100 narrow-body aircraft, and approximately 20 wide-body aircraft. Accordingly, we expect our capital expenditures for the year to be less than $8 billion, consistent with the $7 to 9 billion multi-year CapEx guidance we provided back in 2024. On the balance sheet, becoming investment-grade rated is a major priority of mine, and in 2025, we made meaningful progress towards investment-grade metrics. We paid off $1.9 billion of our high-cost COVID-era debt and brought our total cost of debt down to 4.7%. Our net leverage at the end of the year was 2.2x. As a result of our deleveraging efforts, combined with our earnings power and industry bifurcation, we've received five upgrades to our credit ratings across Moody's, S&P, and Fitch over the last 13 months.
In 2026. We've planned to deliver further and Target net. Leverage below 2 times with the intention of achieving investment grade metrics by year end.
Speaker #2: Accordingly, we expect our capital expenditures for the year to be less than $8 billion, consistent with the $7 to $9 billion multi-year CapEx guidance we provided back in 2024.
We're hopeful to achieve investment grade ratings, shortly thereafter and are committed to managing our balance sheet to achieve that goal.
Speaker #2: On the balance sheet, becoming investment-grade rated is a major priority of mine, and in 2025, we made meaningful progress towards investment-grade metrics. We paid off $1.9 billion of our high-cost COVID-era debt and brought our total cost of debt down to 4.7%.
Free cash flow generation remains a key priority in 2025. We generated 2.7 billion in free cash flow and in 2026 we expect to deliver a similar level of free cash flow. Given higher aircraft deliverers.
In the medium term, we expect free cash conversion to remain around 50% and as we exit the decade, we continue to expect free cash conversion to expand to around 75%.
Speaker #2: Our net leverage at the end of the year was 2.2 times. As a result of our deleveraging efforts, combined with our earnings power and industry bifurcation, we've received five upgrades to our credit ratings across Moody's, S&P, and Fitch over the last 13 months.
On the buyback, we have 782 million left in authorization, from a board of directors, we will continue to balance our priority of being investment grade with making opportunistic, purchases of our shares when Market opportunities, present themselves, hopefully, less frequently.
Speaker #2: United is now just one notch below investment grade at all three agencies—our highest ratings in over 25 years. In 2026, we plan to delever further and target net leverage below 2 times, with the intention of achieving investment-grade metrics by year-end.
Michael Leskinen: United is now just one notch below investment-grade at all three agencies, our highest ratings in over 25 years. In 2026, we plan to deliver further and target net leverage below 2x with the intention of achieving investment-grade metrics by year-end. We're hopeful to achieve investment-grade ratings shortly thereafter and are committed to managing our balance sheet to achieve that goal. Free cash flow generation remains a key priority. In 2025, we generated $2.7 billion in free cash flow, and in 2026, we expect to deliver a similar level of free cash flow given higher aircraft deliveries. In the medium term, we expect free cash conversion to remain around 50%, and as we exit the decade, we continue to expect free cash conversion to expand to around 75%. On the buyback, we have $782 million left in authorization from our board of directors.
United is now just one notch below investment-grade at all three agencies, our highest ratings in over 25 years. In 2026, we plan to deliver further and target net leverage below 2x with the intention of achieving investment-grade metrics by year-end. We're hopeful to achieve investment-grade ratings shortly thereafter and are committed to managing our balance sheet to achieve that goal. Free cash flow generation remains a key priority. In 2025, we generated $2.7 billion in free cash flow, and in 2026, we expect to deliver a similar level of free cash flow given higher aircraft deliveries. In the medium term, we expect free cash conversion to remain around 50%, and as we exit the decade, we continue to expect free cash conversion to expand to around 75%. On the buyback, we have $782 million left in authorization from our board of directors.
2025 Pro proved United could effectively manage through macro volatility and Company specific challenges while also delivering resilient earnings.
Our relative margins remain, strong. And moving forward, our Focus will be on continued margin expansion and achieving double-digit margins.
Speaker #2: We're hopeful to achieve investment-grade ratings shortly thereafter, and are committed to managing our balance sheet to achieve that goal. Free cash flow generation remains a key priority.
The industry continues to transform and competitive Dynamics are evolving with United firmly in the lead.
Speaker #2: In 2025, we generated $2.7 billion in free cash flow, and in 2026, we expect to deliver a similar level of free cash flow given higher aircraft deliveries.
Taken together, United Airlines is positioned for another year of growth and success, that will drive value to our employees, our customers, and our shareholders. Now back to Christina to kick off the Q&A.
Speaker #2: In the medium term, we expect free cash conversion to remain around 50%, and as we exit the decade, we continue to expect free cash conversion to expand to around 75%.
Thank you, Mike. We will now take questions from the analyst Community. Please limit yourself to 1 question and if needed 1 brief follow-up question, as we hope to get to, as many of you as possible, Kobe please describe the procedure to ask a question.
Speaker #2: On the buyback, we have $782 million left in authorization from our board of directors. We will continue to balance our priority of being investment-grade with making opportunistic purchases of our shares when market opportunities present themselves.
Thank you. The question and answer session will be conducted electronically.
Michael Leskinen: We will continue to balance our priority of being investment-grade with making opportunistic purchases of our shares when market opportunities present themselves, hopefully less frequently. 2025 proved United could effectively manage through macro volatility and company-specific challenges while also delivering resilient earnings. Our relative margins remain strong, and moving forward, our focus will be on continued margin expansion and achieving double-digit margins. The industry continues to transform, and competitive dynamics are evolving, with United firmly in the lead. Taken together, United Airlines is positioned for another year of growth and success that will drive value to our employees, our customers, and our shareholders. Now, back to Kristina to kick off the Q&A.
We will continue to balance our priority of being investment-grade with making opportunistic purchases of our shares when market opportunities present themselves, hopefully less frequently. 2025 proved United could effectively manage through macro volatility and company-specific challenges while also delivering resilient earnings. Our relative margins remain strong, and moving forward, our focus will be on continued margin expansion and achieving double-digit margins. The industry continues to transform, and competitive dynamics are evolving, with United firmly in the lead. Taken together, United Airlines is positioned for another year of growth and success that will drive value to our employees, our customers, and our shareholders. Now, back to Kristina to kick off the Q&A.
If you would like to ask a question, please press star. Then the number 1 on your telephone keypad, to raise your hand and enter the queue.
If you'd like to withdraw your question at any time, please press star 1 again.
Speaker #2: Hopefully, less frequently. 2025 proved United could effectively manage through macro volatility and company-specific challenges while also delivering resilient earnings. Our relative margins remain strong, and moving forward, our focus will be on continued margin expansion and achieving double-digit margins.
Please hold for a moment while we assemble. Our queue.
Your first question comes from Conor Cunningham from Melius research, your line is open.
Speaker #2: The industry continues to transform, and competitive dynamics are evolving. We've united firmly in the lead. Taken together, United Airlines is positioned for another year of growth and success that will drive value to our employees, our customers, and our shareholders.
Speaker #2: Now, back to Kristina to kick off the Q&A.
Hi everyone. Thank you. Um, just on the on the corporate travel comments, you've noted a lot of strength there in January so far, and I actually think that's your much most most most difficult comp of the quarter. So, if you could just talk about how things change throughout 1 Q, I just think that you're going to be exiting at a, at a much higher, you know, booking rate in in, in March than you are right now. So, if you could just talk about that, uh, in general, thank you,
Speaker #1: Thank you, Mike. We will now take questions from the analyst community. Please limit yourself to one question and, if needed, one brief follow-up question, as we hope to get to as many of you as possible.
Operator: Thank you, Mike. We will now take questions from the analyst community. Please limit yourself to one question and, if needed, one brief follow-up question as we hope to get to as many of you as possible. Colby, please describe the procedure to ask a question.
Kristina Edwards: Thank you, Mike. We will now take questions from the analyst community. Please limit yourself to one question and, if needed, one brief follow-up question as we hope to get to as many of you as possible. Colby, please describe the procedure to ask a question.
Speaker #1: Colby, please describe the procedure to ask a question.
Speaker #1: question. Thank you.
Operator: Thank you. The question-and-answer session will be conducted electronically. If you would like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question at any time, please press star one again. Please hold for a moment while we assemble our queue. Your first question comes from Connor Cunningham from Melius Research. Your line is open.
Operator: Thank you. The question-and-answer session will be conducted electronically. If you would like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question at any time, please press star one again. Please hold for a moment while we assemble our queue. Your first question comes from Conor Cunningham from Melius Research. Your line is open.
Speaker #2: The question and answer session will be conducted electronically. If you'd like to ask a question, please press star, then the number one on your telephone keypad to raise your hand and enter the queue.
Speaker #2: If you'd like to withdraw your question at any time, please press star one again. Please hold for a moment while we assemble our queue.
We saw actually a strong business volumes at first, but those numbers quickly, uh, trailed off to the up. Just very low single digits in February and March
Speaker #2: Your first question comes from Connor Cunningham from Melius Research.
Speaker #2: Your line is open. Hi
[Analyst] (Melius Research): Hi, everyone. Thank you. Just on the corporate travel comments, you've noted a lot of strength there in January so far, and I actually think that's your most difficult comp of the quarter. So if you could just talk about how things changed throughout Q1. I just think that you're going to be exiting at a much higher booking rate in March than you are right now. So if you could just talk about that in general. Thank you.
Conor Cunningham: Hi, everyone. Thank you. Just on the corporate travel comments, you've noted a lot of strength there in January so far, and I actually think that's your most difficult comp of the quarter. So if you could just talk about how things changed throughout Q1. I just think that you're going to be exiting at a much higher booking rate in March than you are right now. So if you could just talk about that in general? Thank you.
Speaker #3: Everyone, thank you. Just on the corporate travel comments—you've noted a lot of strength there in January so far, and I actually think that's your most difficult comp of the quarter.
Speaker #3: So if you could just talk about how things changed throughout one queue. I just think that you're going to be exiting at a much higher booking rate in March than you are right now.
This year, for the same early January week, Disney's revenue is up high, single digits and nearly 20% a year or 2. So if current visits business volumes, you know, simply continue. You'll see year-over-year growth for the last 2 weeks of January, for business. You know, up 1213 14% the further, you push this math into February and March, the stronger it potentially gets. Um, so, uh, you know, I, I, I think I agree with your conclusion. We'll we'll, you know, it's still early in the year but, uh, just we're off to a great start from a, from a business, uh, point of view.
Okay, great. And then
Speaker #3: So, if you could just talk about that in general. Thank you.
Speaker #4: Thanks, Connor. I think I agree with your conclusion. 2026 has gotten off to a really, I think, very strong start, but in particular, business volumes have gotten off and are just really compelling.
Andrew Nocella: Thanks, Connor. I think I agree with your conclusion. 2026 has gotten off to a really, I think, very strong start, but in particular, business volumes have gotten off and are just really compelling. And the way I look at it is if you think back to early 2025, we saw actually strong business volumes at first, but those numbers quickly trailed off to be up just very low single digits in February and March. This year, for the same early January week, business revenue is up high single digits and nearly 20% year-over-year. So if current business volumes simply continue, you'll see year-over-year growth for the last two weeks of January for business up 12%, 13%, 14%. The further you push this math into February and March, the stronger it potentially gets. So I think I agree with your conclusion.
Andrew Nocella: Thanks, Connor. I think I agree with your conclusion. 2026 has gotten off to a really, I think, very strong start, but in particular, business volumes have gotten off and are just really compelling. And the way I look at it is if you think back to early 2025, we saw actually strong business volumes at first, but those numbers quickly trailed off to be up just very low single digits in February and March. This year, for the same early January week, business revenue is up high single digits and nearly 20% year-over-year. So if current business volumes simply continue, you'll see year-over-year growth for the last two weeks of January for business up 12%, 13%, 14%. The further you push this math into February and March, the stronger it potentially gets. So I think I agree with your conclusion.
Speaker #4: And the way I look at it is, if you think back to early 2025, we saw actually strong business volumes at first, but those numbers quickly trailed off to be up just very low single digits in February and March.
I mean, I know you've spent a lot of time diversifying away from the the main cabin and with all the premium and corporate and all that stuff that you're doing. But it just feels like we've been, I mean you noted ongoing issues in the main cabin into 2026 so far. So if you could just talk about how that segment potentially flips to the positive and, you know, are you assuming uh, you know any to any sort of like rate of change or or that flipping positive at some point. Um, later in the year? Thank you.
Speaker #4: This year, for the same early January week, business revenue is up high single digits and nearly 20% year over two. So, if current business volumes simply continue, you'll see year-over-year growth for the last two weeks of January for business up 12, 13, 14%.
Speaker #4: The further you push this math into February and March, the stronger it potentially gets. So I think I agree with your conclusion. We're still early in the year, but we're off to a great start from a business point of view.
Andrew Nocella: It's still early in the year, but we're off to a great start from a business point of view.
It's still early in the year, but we're off to a great start from a business point of view.
Speaker #3: Okay, great. And then, I mean, I know you've spent a lot of time diversifying away from the main cabin, and with all the premium and corporate and all that stuff that you're doing, but it just feels like we've been—I mean, you noted ongoing issues in the main cabin into 2026 so far.
[Analyst] (Melius Research): Okay. Great. And then, I mean, I know you spend a lot of time diversifying away from the Main Cabin and with all the premium and corporate and all that stuff that you're doing, but it just feels like we've been, I mean, you noted ongoing issues in the Main Cabin into 2026 so far. So if you could just talk about how that segment potentially flips to the positive. And are you assuming any sort of rate of change or that flipping positive at some point later in the year? Thank you.
Conor Cunningham: Okay. Great. And then, I mean, I know you spend a lot of time diversifying away from the Main Cabin and with all the premium and corporate and all that stuff that you're doing, but it just feels like we've been, I mean, you noted ongoing issues in the Main Cabin into 2026 so far. So if you could just talk about how that segment potentially flips to the positive. And are you assuming any sort of rate of change or that flipping positive at some point later in the year? Thank you.
Speaker #3: So, if you could just talk about how that segment potentially flips to the positive, and are you assuming any sort of rate of change or that flipping positive at some point later in the year?
Well, look, uh, you know, I think it's inevitable. Um, uh, you know, premium cabinets are look really on their fourth year in a row, uh, but I do think it's inevitable that the coach cabin, the main cabin, improves and it's, it's a really simple equation. It's it's the unprofitable, uh, capacity offered by others in the marketplace, uh, that continues to fly, you know, more than you, otherwise expect to fly. So we'll, we'll see how that all shakes out. I, I can't predict the time in, um, but I do think eventually, uh, businesses stop doing unprofitable things. Uh, we'll have to see when that happens. But I, I remain bullish that, uh, we are going to see, uh, the performance of the main cabin flip at some point in the future. And when it does uh, that will be enormous uh fuel to our our margin growth and be great for for the industry itself. So time will tell. Um but I remain optimistic that you are on the course for that at some point in the future.
Appreciate it. Thank you.
Your next question comes from David Vernon with Bernstein. Your line is open.
Speaker #3: Thank you.
Speaker #4: Well, look, I think it's inevitable. Premium cabins are really on their fourth year in a row, but I do think it's inevitable that the coach cabin—the main cabin—improves.
Andrew Nocella: Well, look, I think it's inevitable. Premium cabins look really on their fourth year in a row, but I do think it's inevitable that the coach cabin, the main cabin, improves. And it's a really simple equation. It's the unprofitable capacity offered by others in the marketplace that continues to fly more than you otherwise expect to fly. So we'll see how that all shakes out. I can't predict the time in, but I do think eventually businesses stop doing unprofitable things. We'll have to see when that happens, but I remain bullish that we are going to see the performance of the main cabin flip at some point in the future. And when it does, that will be enormous fuel to our margin growth and be great for the industry itself.
Andrew Nocella: Well, look, I think it's inevitable. Premium cabins look really on their fourth year in a row, but I do think it's inevitable that the coach cabin, the main cabin, improves. And it's a really simple equation. It's the unprofitable capacity offered by others in the marketplace that continues to fly more than you otherwise expect to fly. So we'll see how that all shakes out. I can't predict the time in, but I do think eventually businesses stop doing unprofitable things. We'll have to see when that happens, but I remain bullish that we are going to see the performance of the main cabin flip at some point in the future. And when it does, that will be enormous fuel to our margin growth and be great for the industry itself.
Speaker #4: And it's a really simple equation. It's the unprofitable capacity offered by others in the marketplace that continues to fly more than you would otherwise expect to fly.
Hey, good morning guys. And uh, thanks for taking the question. So, um, Scott maybe I think it's your thoughts on on how you're thinking about some of the changes that are being discussed around the credit card, I think ecosystem, um, and and we'll kind of what that might mean for United as we look, uh, for the next couple of years. Um, if some of these changes are implemented, you know, how do you think about, uh, what you can do to manage around it and and what are you and your partners thinking about as a most most likely set of outcomes?
Speaker #4: So, we'll see how that all shakes out. I can't predict the timing, but I do think eventually businesses stop doing unprofitable things. We'll have to see when that happens, but I remain bullish that we are going to see the performance of the main cabin flip at some point in the future.
As far as, uh, whether it's a cap on interest rates or or the credit card competition act, what have you? Thanks.
Speaker #4: And when it does, that will be enormous fuel to our margin growth and be great for the industry itself. So, time will tell. But I remain optimistic that we're on the course for that at some point in the future.
Andrew Nocella: Time will tell, but I remain optimistic that we're on the course for that at some point in the future.
Time will tell, but I remain optimistic that we're on the course for that at some point in the future.
Speaker #3: Appreciate it. Thank
[Analyst] (Melius Research): Appreciate it. Thank you.
Conor Cunningham: Appreciate it. Thank you.
Speaker #3: You. Your next question comes from David.
Operator: Your next question comes from David Vernon with Bernstein. Your line is open.
Operator: Your next question comes from David Vernon with Bernstein. Your line is open.
Speaker #2: Vernon with Bernstein, your line is open.
Speaker #5: Hey, good morning, guys, and thanks for taking the question. So, Scott, maybe I'd like to get your thoughts on how you're thinking about some of the changes that are being discussed around the credit card ecosystem, and what that might mean for United as we look over the next couple of years.
[Analyst] (Bernstein): Hey, good morning, guys. And thanks for taking the question. So Scott, maybe I'd like to get your thoughts on how you're thinking about some of the changes that are being discussed around the credit card ecosystem and what that might mean for United as we look forward to the next couple of years. If some of these changes are implemented, how do you think about what you can do to manage around it, and what are you and your partners thinking about as the most likely set of outcomes as far as whether it's the cap on interest rates or the credit card competition tax, what have you? Thanks.
David Vernon: Hey, good morning, guys. And thanks for taking the question. So Scott, maybe I'd like to get your thoughts on how you're thinking about some of the changes that are being discussed around the credit card ecosystem and what that might mean for United as we look forward to the next couple of years. If some of these changes are implemented, how do you think about what you can do to manage around it, and what are you and your partners thinking about as the most likely set of outcomes as far as whether it's the cap on interest rates or the credit card competition tax, what have you? Thanks.
Speaker #5: If some of these changes are implemented, how do you think about what you can do to manage around it? And what are you and your partners thinking about as a most likely set of outcomes as far as whether it’s the cap on interest rates or the credit card competition tax, what have you?
Sure. I'll, I'll I'll take the question. Uh, you know, I think it's a really good and relevant question. Obviously. Uh at first we're in constant contact with Chase on the issue obviously Chase is our largest co-brand partner. Uh, and we talked to them all the time on this on this issue. And what I'd say is, well much remains uncertain, of course, United portfolio would be impacted, but in our view it would be impacted a lot less than just about everybody else. You know, Mileage Plus kobrand holders, tend to skew towards higher FICA band. Ranges often revolve at a lower rate and have low loss rates. These factors make us different than most non-airline co-brand programs, and maybe even a lot different from a lot of other airlines over in programs. You know, we're going to let the banks sort this out, interest rates and revolve rates are more their thing. Our focus is on providing amazing benefits via this program. Uh, that our consumers love. So uh, a lot more to come on this subject, um, but we feel like we're on top of it and, uh, we will be ready for whatever happens in the future.
Speaker #5: Thanks.
Speaker #4: Sure. I'll take the question. I think it's a really good and relevant question, obviously. And first, we're in constant contact with Chase on the issue.
Andrew Nocella: Sure. I'll take the question. I think it's a really good and relevant question, obviously. And first, we're in constant contact with Chase on the issue. Obviously, Chase is our largest co-brand partner, and we talk to them all the time on this issue. And what I'd say is, while much remains uncertain, of course, United's portfolio would be impacted, but in our view, it would be impacted a lot less than just about everybody else. MileagePlus co-brand holders tend to skew towards higher FICA band ranges, often revolve at a lower rate, and have low loss rates. These factors make us different than most non-airline co-brand programs and maybe even a lot different from a lot of other airline co-brand programs. We're going to let the banks sort this out. Interest rates and revolve rates are more their thing.
Andrew Nocella: Sure. I'll take the question. I think it's a really good and relevant question, obviously. And first, we're in constant contact with Chase on the issue. Obviously, Chase is our largest co-brand partner, and we talk to them all the time on this issue. And what I'd say is, while much remains uncertain, of course, United's portfolio would be impacted, but in our view, it would be impacted a lot less than just about everybody else. MileagePlus co-brand holders tend to skew towards higher FICA band ranges, often revolve at a lower rate, and have low loss rates. These factors make us different than most non-airline co-brand programs and maybe even a lot different from a lot of other airline co-brand programs. We're going to let the banks sort this out. Interest rates and revolve rates are more their thing.
Speaker #4: Obviously, Chase is our largest co-brand partner, and we talk to them all the time on this issue. And what I'd say is, while much remains uncertain, of course, United's portfolio would be impacted—but in our view, it would be impacted a lot less than just about everybody else.
All right, thanks for that. And then maybe just as a quick follow-up. You mentioned, um, some additional stuff you might be able to do outside of the, the, the, the, the, the on top of the existing sort of agreements that you have with your card card Partners, any more color you can give us in terms of kind of, you know what that means in terms of um specific uh changes or enhancements. So you can you can drive the program in the near term outside of renegotiating the contract.
Speaker #4: MileagePlus co-brand holders tend to skew towards higher FICO band ranges, often revolve at a lower rate, and have low loss rates. These factors make us different than most non-airline co-brand programs, and maybe even a lot different from a lot of other airline co-brand programs.
Speaker #4: We're going to let the bank sort this out. Interest rates and revolve rates are more their thing. Our focus is on providing amazing benefits via this program that our consumers love.
Andrew Nocella: Our focus is on providing amazing benefits via this program that our consumers love. So a lot more to come on this subject, but we feel like we're on top of it, and we will be ready for whatever happens in the future.
Our focus is on providing amazing benefits via this program that our consumers love. So a lot more to come on this subject, but we feel like we're on top of it, and we will be ready for whatever happens in the future.
Speaker #4: So, a lot more to come on this subject, but we feel like we're on top of it, and we will be ready for whatever happens in the future.
Speaker #4: future. All right.
[Analyst] (Bernstein): All right. Thanks for that. And then maybe just as a quick follow-up, you mentioned some additional stuff you might be able to do outside of the or on top of the existing sort of agreements that you have with your card partners. Any more color you can give us in terms of kind of what that means in terms of specific changes or enhancements you can drive to the program in the near term outside of renegotiating the contract?
David Vernon: All right. Thanks for that. And then maybe just as a quick follow-up, you mentioned some additional stuff you might be able to do outside of the or on top of the existing sort of agreements that you have with your card partners. Any more color you can give us in terms of kind of what that means in terms of specific changes or enhancements you can drive to the program in the near term outside of renegotiating the contract?
Speaker #5: Thanks for that. And then maybe just as a quick follow-up, you mentioned some additional stuff you might be able to do outside of, or on top of, the existing sort of agreements that you have with your card partners.
All right, thanks again.
Speaker #5: Any more color you can give us in terms of what that means in terms of specific changes or enhancements you can drive to the program in the near term—outside of renegotiating?
Your next question comes from the line of Sheila Caillou with Jeffrey's your line is open.
Speaker #5: the contract? Sure.
Andrew Nocella: Sure. I'll do my best. But first, I want to welcome Jared Fisher to the team. Jared's our new head of MileagePlus. He has experience in credit cards, strong brands, and airlines, which make him a perfect fit to lead MileagePlus into the next chapter. Richard and Luke have just done a great job, and as you can see from our new card growth stats that I said earlier in 2025, along with our redemption growth. I know I often talk about these changes at MileagePlus without a lot of details, but what I'll tell you is Jared and I will have a lot more to say about this, and we're going to say something within the next 10 weeks to accelerate growth and pull levers that we can pull that are in our control.
Andrew Nocella: Sure. I'll do my best. But first, I want to welcome Jared Fisher to the team. Jared's our new head of MileagePlus. He has experience in credit cards, strong brands, and airlines, which make him a perfect fit to lead MileagePlus into the next chapter. Richard and Luke have just done a great job, and as you can see from our new card growth stats that I said earlier in 2025, along with our redemption growth. I know I often talk about these changes at MileagePlus without a lot of details, but what I'll tell you is Jared and I will have a lot more to say about this, and we're going to say something within the next 10 weeks to accelerate growth and pull levers that we can pull that are in our control.
Speaker #4: I'll do my best. But first, I want to welcome Jared Fisher to the team. Jared's our new head of MileagePlus. He has experience in credit cards, strong brands, and airlines, which makes him a perfect fit to lead MileagePlus into the next chapter.
Good morning, guys, and great quarter. Um, Mike, maybe this first 1's for you. You know, the unit cost has been, uh, Stellar cost 2025 quarters, even in light of the Investments, you guys are making around the product, the experience and your debunking, that sort of needs that there's a variable cost relationship here. So, maybe can you dissect?
Speaker #4: Richard and Luke have just done a great job. And as you can see from our new card growth stats that I mentioned earlier, in 2025, along with our remission growth.
What you guys are doing, right? What the opportunities are for efficiencies going forward and how that plays into 2026 growth
Speaker #4: I know I often talk about these changes at MileagePlus without a lot of details. But what I'll tell you is Jared and I will have a lot more to say about this, and we're going to say something within the next 10 weeks to accelerate growth and pull levers that we can pull that are in our control.
Speaker #4: So, just a few more weeks and I'll be able to, I think, answer that question sufficiently for—
Andrew Nocella: So just a few more weeks, and I'll be able to, I think, answer that question sufficiently for you.
So just a few more weeks, and I'll be able to, I think, answer that question sufficiently for you.
Thanks, Sheila, and I'm very proud of our cost performance in 2025. I think it'll prove to be industry-leading. Uh, as I said, in my prepared remarks, um, look, the cost efficiency in 2025 in the first in the fourth quarter, uh, the operation, the strong operation form, the foundation. And so a lot of credit goes to Toby and his team for uh for driving that strong operation. Strong operation is a cost efficient operation.
Speaker #4: you. All right.
[Analyst] (Bernstein): All right. Thanks again.
David Vernon: All right. Thanks again.
Speaker #5: Thanks again.
Speaker #2: Your next question comes from the line of Sheila Cayoglu with Jefferies. Your line is open.
Operator: Your next question comes from the line of Sheila Kahyaoglu with Jefferies. Your line is open.
Operator: Your next question comes from the line of Sheila Kahyaoglu with Jefferies. Your line is open.
Speaker #6: Good morning, guys, and great quarter. Mike, maybe this first one's for you. The unit cost has been stellar across 2025 quarters, even in light of the investments you guys are making around the product, the experience, and your debunking that sort of view that there's a variable cost relationship here.
Operator: Good morning, guys. It's been a great quarter. Mike, maybe this first one's for you. The unit cost has been stellar across 2025 quarters, even in light of the investments you guys are making around the product, the experience, and you're debunking that sort of view that there's a variable cost relationship here. So maybe can you dissect what you guys are doing, right, what the opportunities are for efficiencies going forward, and how that plays into 2026 growth?
Good morning, guys. It's been a great quarter. Mike, maybe this first one's for you. The unit cost has been stellar across 2025 quarters, even in light of the investments you guys are making around the product, the experience, and you're debunking that sort of view that there's a variable cost relationship here. So maybe can you dissect what you guys are doing, right, what the opportunities are for efficiencies going forward, and how that plays into 2026 growth?
But in, in addition to that, we are driving a real cultural efficiency here at United Airlines. Uh, I'll give a few examples, um, and we can talk more about it as time goes on, but a few examples are, you know, as we continue to invest in industry-leading apps. Uh, it drives a lot about automation for quicker check-in. It's customer pleasing. It also takes, uh, it takes some costs, some variable costs out of our system. Um, we've also
Speaker #6: So, maybe can you dissect what you guys are doing right, what the opportunities are for efficiencies going forward, and how that plays into 2026 growth?
Called our Global procurement organization. And I'm really happy to say that through this first year of that overhaul we've identified and delivered on 150 million in run rate savings uh in in the procurement organization and there's a lot lot more to come.
Speaker #3: Thanks, Sheila. And I'm very proud of our cost performance in 2025. I think it'll prove to be industry-leading. As I said in my prepared remarks, look, the cost efficiency in 2025 in the fourth quarter—the operation, the strong operation—formed the foundation.
Michael Leskinen: Thanks, Sheila. I'm very proud of our cost performance in 2025. I think it'll prove to be industry-leading, as I said in my prepared remarks. Look, the cost efficiency in 2025, in the fourth quarter, the operation, the strong operation formed the foundation. So a lot of credit goes to Toby and his team for driving that strong operation. Strong operation is a cost-efficient operation. But in addition to that, we are driving a real cultural efficiency here at United Airlines. I'll give a few examples, and we can talk more about it as time goes on, but a few examples are as we continue to invest in an industry-leading app; it drives a lot of automation for quicker check-in. It's customer-pleasing. It takes some variable costs out of our system. We've also overhauled our global procurement organization.
Michael Leskinen: Thanks, Sheila. I'm very proud of our cost performance in 2025. I think it'll prove to be industry-leading, as I said in my prepared remarks. Look, the cost efficiency in 2025, in the fourth quarter, the operation, the strong operation formed the foundation. So a lot of credit goes to Toby and his team for driving that strong operation. Strong operation is a cost-efficient operation. But in addition to that, we are driving a real cultural efficiency here at United Airlines. I'll give a few examples, and we can talk more about it as time goes on, but a few examples are as we continue to invest in an industry-leading app; it drives a lot of automation for quicker check-in. It's customer-pleasing. It takes some variable costs out of our system. We've also overhauled our global procurement organization.
Speaker #3: And so, a lot of credit goes to Toby and his team for driving that strong operation. Strong operation is a cost-efficient operation. But in addition to that, we are driving a real culture of efficiency here at United Airlines.
Speaker #3: And I'll give a few examples, and we can talk more about it as time goes on. But a few examples are, as we continue to invest in our industry-leading app, it drives a lot of automation for quicker check-in. It's customer-pleasing, and it also takes some costs out of it—some variable costs out of our system.
Speaker #3: We've also overhauled our global procurement organization, and I'm really happy to say that through this first year of that overhaul, we've identified and delivered on $150 million in run rate savings in the procurement organization.
Michael Leskinen: I'm really happy to say that through this first year of that overhaul, we've identified and delivered on $150 million in run rate savings in the procurement organization, and there's a lot, lot more to come. Then finally, we are using sophisticated technology to help model the demand for our tech ops organization. That's leading to more productive technicians, fewer grounded aircraft, and a more productive fleet overall. There's a few examples. I'll tell you that there's more to come. This is a culture at United to drive an efficient operation. We reinvest a lot of that in the customer, and it's helping to drive higher structural profitability for United. Thanks for the question.
I'm really happy to say that through this first year of that overhaul, we've identified and delivered on $150 million in run rate savings in the procurement organization, and there's a lot, lot more to come. Then finally, we are using sophisticated technology to help model the demand for our tech ops organization. That's leading to more productive technicians, fewer grounded aircraft, and a more productive fleet overall. There's a few examples. I'll tell you that there's more to come. This is a culture at United to drive an efficient operation. We reinvest a lot of that in the customer, and it's helping to drive higher structural profitability for United. Thanks for the question.
And then finally, um, we are using, uh, sophisticated technology to help model, uh, to model the demand for our Tech Ops organization and that's leading the more productive technicians, uh, fewer grounded aircraft, uh, and a more productive Fleet overall. So there's a few examples. Um, I'll tell you that there's more to come. Uh, this is a culture at United, uh, to drive an efficient operation. We reinvest a lot of that in the customer, um, and it's helping to drive higher higher structural profitability for United. So, thanks for the question and and I, at least want to add on mostly to compliment team. Um, I think this is from an investor perspective 1 of the differentiating points of United, uh, versus all the other airlines in the world. Um, uh, we are the best in the air, best airlines in the world at the real core cost efficiency. So that we've talked about a little in the past and credit to Mike credit and Jonathan Ireland, who's sitting in this room, Toby, inquis our chief operating officer uh, and Jason b, b bmbb who runs
Technology for us. Um, we've
Speaker #3: And there's a lot, lot more to come. And then finally, we are using sophisticated technology to help model the demand for our Tech Ops organization.
Speaker #3: And that's leading to more productive technicians, fewer grounded aircraft, and a more productive fleet overall. So there's a few examples. I'll tell you that there's more to come.
Speaker #3: This is a culture at United to drive an efficient operation. We reinvest a lot of that in the customer, and it's helping to drive higher structural profitability for United.
Speaker #3: So thanks for the
Speaker #3: And I at least want to
Scott Kirby: And I at least want to add on, mostly to complement the team. I think this is, from an investor perspective, one of the differentiating points of United versus all the other airlines in the world. We are the best airline in the world at the real core cost efficiency, something we've talked about a little in the past. And credit to Mike, credit to Jonathan Ireland, who's sitting in this room, Toby Enqvist, our chief operating officer, and Jason Birnbaum, who runs technology for us. Culturally, we are great, but we've also made technology investments that I know do not exist at any other airline. And that's the foundation, the culture, and the technology that drives core efficiency. We keep doing more. And Mike told you a bunch of the tactical things that have happened recently, but then we keep finding more.
Scott Kirby: And I at least want to add on, mostly to complement the team. I think this is, from an investor perspective, one of the differentiating points of United versus all the other airlines in the world. We are the best airline in the world at the real core cost efficiency, something we've talked about a little in the past. And credit to Mike, credit to Jonathan Ireland, who's sitting in this room, Toby Enqvist, our chief operating officer, and Jason Birnbaum, who runs technology for us. Culturally, we are great, but we've also made technology investments that I know do not exist at any other airline. And that's the foundation, the culture, and the technology that drives core efficiency. We keep doing more. And Mike told you a bunch of the tactical things that have happened recently, but then we keep finding more.
Speaker #4: add on mostly to complement the team. I think this is from an investor perspective, one of the differentiating points of United versus all the other airlines in the world.
it would culturally, um, uh, are great, but we've also made technology Investments that I know do not exist at any other Airline, um, and that's the foundation that the culture and the technology that drives core, uh, efficiency. And, you know, we keep doing more and Mike told you a bunch of the Tactical things that have happened recently, but then we keep finding more, you know, 1 of my favorite stories was, you know, we've finished the budget last year and finished the budget and Toby came forward and said, you know, I think we got chances to drive another 250 million out of the operation, um, in core efficiency. Nothing. That impacts the customer. It helps the airline actually run better, um, and saves money. And there's no other Chief Operating Officer in the world that is doing that. They're all begging for more money in their budgets. Um, like this is real, uh, at United. Um, you know, I
Speaker #4: We are the best in the best airline in the world at the real core cost efficiency, something we've talked about a little in the past.
Speaker #4: And credit to Mike, credit to Jonathan Ireland, who's sitting in this room; Toby Enqvist, our chief operating officer; and Jason Bergman, who runs technology for us.
I think we're going to drive costs for years to come, um, but outperformed the rest of the industry because what we're doing is real and is not coming at the expense of employees or customers.
Speaker #4: We’ve culturally are great, but we’ve also made technology investments that I know do not exist at any other airline. And that’s the foundation—the culture and the technology—that drives core efficiency.
Speaker #4: We keep doing more. And Mike told you a bunch of the tactical things that have happened recently, but then we keep finding more. And one of my favorite stories was, we finished the budget last year and finished the budget, and Toby came forward and said, "I think we've got chances to drive another $250 million out of the operation in core efficiency." Nothing that impacts the customer—that helps the airline actually run better.
That's great. Um, and maybe if I could ask 1 on, uh, your Fleet, you know, you talked about 25 being a high watermark for growth, but you have a 100 narrow body, deliveries plus 2787, so that's 10% growth by the end of 26. Giving you only so 20 retirements. So, you know, plus you have the gauge benefit that accelerates in 26. How you're thinking about the guard rails? The capacity growth this year, and we're in the network and the fleet plan, you're you're keeping a buffer there.
Scott Kirby: One of my favorite stories was we finished the budget last year and finished the budget, and Toby came forward and said, "I think we got chances to drive another $250 million out of that operation in core efficiency." Nothing that impacts the customer, that helps the airline actually run better and saves money. There's no other chief operating officer in the world that is doing that. They're all begging for more money in their budgets. This is real at United. I think we're going to drive costs for years to come that outperform the rest of the industry because what we're doing is real and is not coming at the expense of employees or customers.
One of my favorite stories was we finished the budget last year and finished the budget, and Toby came forward and said, "I think we got chances to drive another $250 million out of that operation in core efficiency." Nothing that impacts the customer, that helps the airline actually run better and saves money. There's no other chief operating officer in the world that is doing that. They're all begging for more money in their budgets. This is real at United. I think we're going to drive costs for years to come that outperform the rest of the industry because what we're doing is real and is not coming at the expense of employees or customers.
Speaker #4: And saves money. And there's no other chief operating officer in the world that is doing that. They're all begging for more money in their budgets.
Speaker #4: This is real at United. I think we're going to drive costs for years to come that outperform the rest of the industry, because what we're doing is real and is not coming at the expense of employees or customers.
Speaker #6: That's great. And maybe if I could ask one on your fleet: you talked about 25 being a high watermark for growth, but you have 100 narrow-body deliveries plus 27 787s, so that's 10% growth by the end of '26.
Operator: That's great. And maybe if I could ask one on your fleet. You talked about 2025 being a high watermark for growth, but you have 100 narrow-body deliveries plus 27 787s, so that's 10% growth by the end of 2026, given you only show 20 retirements. So plus you have the gauge benefit that accelerates in 2026. How are you thinking about the guardrails, the capacity growth this year, and where in the network and the fleet plan you're keeping a buffer there?
That's great. And maybe if I could ask one on your fleet. You talked about 2025 being a high watermark for growth, but you have 100 narrow-body deliveries plus 27 787s, so that's 10% growth by the end of 2026, given you only show 20 retirements. So plus you have the gauge benefit that accelerates in 2026. How are you thinking about the guardrails, the capacity growth this year, and where in the network and the fleet plan you're keeping a buffer there?
Speaker #6: Given you only show 20 retirements, plus you have the gauge benefit that accelerates in '26, how are you thinking about the guardrails, the capacity growth this year, and where in the network and the fleet plan you're keeping a buffer there?
Speaker #4: Well, look, we're not going to give capacity guidance other than to tell you that our United Next plan has been working well. And this past year was the high watermark.
Andrew Nocella: Well, look, we're not going to give capacity guidance other than to tell you that our United Next plan has been working well, and this last past year was the high watermark. So we'll manage capacity as appropriate for demand, but that's the guidance we're given today.
Andrew Nocella: Well, look, we're not going to give capacity guidance other than to tell you that our United Next plan has been working well, and this last past year was the high watermark. So we'll manage capacity as appropriate for demand, but that's the guidance we're given today.
Is is really robust versus the aircraft that we can replace and on the, on the widebody front, it's a similar story. You know, we expect 2787 in, uh, 2026. I think we'll take about that amount in future years as well, um, in that modernization of the widebody fleet is, uh, is not just for growth but, uh, it helps Drive, uh, better profitability and better Returns on capital, for, for, for United, going forward. So I feel really good about, uh, the capex profile and what it's going to do to the financials.
Great. Thank you.
Speaker #4: So, we'll manage capacity as appropriate for demand. But that's the
Your next question comes from the line of Katie O'Brien with Goldman Sachs, your line is open.
Speaker #4: guidance we're giving today. And
Michael Leskinen: And Sheila, regarding the 100 narrow-body deliveries, it could be a little more. I mean, Boeing and Airbus have been doing a better job of repairing the supply chain that's been damaged from the pandemic, and so production rates are improving. If we get a few more than that, we're going to welcome that on the narrow-body side. That's going to help us upgauge more quickly. And the profitability of those new aircraft is really robust versus the aircraft that we can replace. And on the wide-body front, it's a similar story. We expect 787s in 2026. I think we'll take about that amount in future years as well. And that modernization of the wide-body fleet is not just for growth, but it helps drive better profitability and better returns on capital for United going forward.
Michael Leskinen: And Sheila, regarding the 100 narrow-body deliveries, it could be a little more. I mean, Boeing and Airbus have been doing a better job of repairing the supply chain that's been damaged from the pandemic, and so production rates are improving. If we get a few more than that, we're going to welcome that on the narrow-body side. That's going to help us upgauge more quickly. And the profitability of those new aircraft is really robust versus the aircraft that we can replace. And on the wide-body front, it's a similar story. We expect 787s in 2026. I think we'll take about that amount in future years as well. And that modernization of the wide-body fleet is not just for growth, but it helps drive better profitability and better returns on capital for United going forward.
Speaker #3: Sheila, regarding the 100 narrow-body deliveries, it could be a little more. I mean, Boeing and Airbus have been doing a better job of repairing the supply chain that's been damaged from the pandemic.
Speaker #3: And so, production rates are improving. If we get a few more than that, we're going to welcome that on the narrow-body side. That's going to help us upgauge more quickly.
Speaker #3: And the profitability of those new aircraft is really robust versus the aircraft that we can replace. And on the wide-body front, it's a similar story.
Hey, good morning everyone. Thanks so much for the time. Um Andrew I wanted to start with you and just dig in on higher thinking about the sequential Trends by region. Underlying your 1q EPS guidance. You know. It is it fair to assume that most of the 250 million pre-tax hit was driven by lower domestic Revenue. Um so you know just trying to understand like should we see the most sequential Improvement in domestic? Um, obviously you had really strong performance in some of the international reasons to fourth quarter. So so really just trying to get a sense of the relative Improvement. You're Expecting between the 4 regions. Thanks.
Speaker #3: We expect 2,787s in 2026. I think we'll take about that amount in future years as well. And that modernization of the wide-body fleet is not just for growth, but it helps drive better profitability and better returns on capital for United going forward.
Speaker #3: So I feel really good about the CapEx profile and what it's going to do to the financials.
Michael Leskinen: So I feel really good about the CapEx profile and what it's going to do to the financials.
So I feel really good about the CapEx profile and what it's going to do to the financials.
Speaker #6: Great. Thank
Operator: Great. Thank you.
Great. Thank you.
Speaker #6: You. Your next question comes from...
Operator: Your next question comes from the line of Katie O'Brien with Goldman Sachs. Your line is open.
Operator: Your next question comes from the line of Katie O'Brien with Goldman Sachs. Your line is open.
Speaker #1: The line of Katie O'Brien with Goldman Sachs. Your line is open.
Speaker #1: open. Hey, good morning, everyone.
[Analyst] (Goldman Sachs): Hey, good morning, everyone. Thanks so much for the time. Andrew, I wanted to start with you and just dig in on how you're thinking about the sequential trends by region underlying your 1Q EPS guidance. Is it fair to assume that most of the $250 million pre-tax hit was driven by lower domestic revenue? So just trying to understand, should we see the most sequential improvement in domestic? Obviously, you had really strong performance in some of the international regions in the fourth quarter. So really just trying to get a sense of the relative improvement you're expecting between the four regions. Thanks.
Catie O’Brien: Hey, good morning, everyone. Thanks so much for the time. Andrew, I wanted to start with you and just dig in on how you're thinking about the sequential trends by region underlying your 1Q EPS guidance. Is it fair to assume that most of the $250 million pre-tax hit was driven by lower domestic revenue? So just trying to understand, should we see the most sequential improvement in domestic? Obviously, you had really strong performance in some of the international regions in the fourth quarter. So really just trying to get a sense of the relative improvement you're expecting between the four regions? Thanks.
Speaker #5: Thanks so much for the time. Andrew, I wanted to start with you and just dig in on how you're thinking about the sequential trends by region underlying your Q1 EPS guidance.
Speaker #5: Is it fair to assume that most of the $250 million pre-tax hit was driven by lower domestic revenue? So, just trying to understand—should we see the most sequential improvement in domestic?
Speaker #5: Obviously, you had really strong performance in some of the international regions in the fourth quarter, so really just trying to get a sense of the relative improvement you're expecting between the four regions.
Yeah, clearly in Q4 the larger hit was uh domestic. I wouldn't say International is zero uh from the government shutdown, but it was mostly uh, uh domestic. As you know, as we look into, uh, 2026, we do have this, uh, Caribbean situation, which is impacting the numbers there. So I I'm gonna be careful when I say about the Caribbean. We still think it could be positive. Um, but, you know, it can be closed but we are looking for sequential Improvement everywhere. Clearly, the Atlantic is leading the way, um, uh, which is great, to see or growing a lot across the Atlantic. A lot of it is Israel. Uh, but we're still growing a lot across the Atlantic, and we think we've got the capacity equation really dialed in, uh, in in that region. Uh, so we're really proud of that specific. I think looks, uh, pretty, darn good. South Pacific is not as good as the North Pacific, uh, and domestically, um, you know, it's, it's going to be another Improvement. And, uh, what I'd say, is premium, cabins are leading the way, uh, not only domestically, but across the entire network.
Great, and my give you 1 for you on the 26th, cost Outlook.
Speaker #4: Yeah, clearly in Q4, the larger hit was domestic. I wouldn't say international is zero from the government shutdown, but it was mostly domestic. As we look into 2026, we do have this Caribbean situation, which is impacting the numbers there.
Andrew Nocella: Yeah. Clearly, in Q4, the larger hit was domestic. I wouldn't say international is zero from the government shutdown, but it was mostly domestic. As we look into 2026, we do have this Caribbean situation, which is impacting the numbers there. So I'm going to be careful what I say about the Caribbean. We still think it could be positive, but it's going to be close. But we are looking for sequential improvement everywhere. Clearly, the Atlantic is leading the way, which is great to see. We're growing a lot across the Atlantic. A lot of it is Israel, but we're still growing a lot across the Atlantic, and we think we've got the capacity equation really dialed in in that region. So we're really proud of that. The Pacific, I think, looks pretty darn good. South Pacific is not as good as the North Pacific.
Andrew Nocella: Yeah. Clearly, in Q4, the larger hit was domestic. I wouldn't say international is zero from the government shutdown, but it was mostly domestic. As we look into 2026, we do have this Caribbean situation, which is impacting the numbers there. So I'm going to be careful what I say about the Caribbean. We still think it could be positive, but it's going to be close. But we are looking for sequential improvement everywhere. Clearly, the Atlantic is leading the way, which is great to see. We're growing a lot across the Atlantic. A lot of it is Israel, but we're still growing a lot across the Atlantic, and we think we've got the capacity equation really dialed in in that region. So we're really proud of that. The Pacific, I think, looks pretty darn good. South Pacific is not as good as the North Pacific.
Speaker #4: So I'm going to be careful what I say about the Caribbean. We still think it could be positive, but it's going to be close.
But, um, you know, you you just detailed a bunch of things that you were really excited about this year. Um, the operation, um, the procurement like, these are some pretty big numbers that you guys have have gotten out of the system. I guess, you know, on the 26th punch list like what are the opportunities you're most excited about? Is it just following down some of these same paths like how should we think about the opportunity to cost out this year versus
Speaker #4: But we are looking for sequential improvement everywhere. Clearly, the Atlantic is leading the way, which is great to see. We're growing a lot across the Atlantic.
You know, the great success you had in 25th.
Speaker #4: A lot of it is Israel. But we're still growing a lot across the Atlantic. And we think we've got the capacity equation really dialed in in that region.
Speaker #4: So we're really proud of that. The Pacific, I think, looks pretty darn good. South Pacific is not as good as the North Pacific. And domestically, it's going to be another improvement.
Andrew Nocella: Domestically, it's going to be another improvement. What I'd say is premium cabins are leading the way, not only domestically, but across the entire network.
Domestically, it's going to be another improvement. What I'd say is premium cabins are leading the way, not only domestically, but across the entire network.
Speaker #4: And what I'd say is, premium cabins are leading the way—not only domestically, but across the entire network.
Yeah, I think I, thanks Katie for the question. I think a continued strong operation number 1. Uh, I mentioned Global procurement. We're just getting started there. So you should see continued improvements on that front. And then we're working with our technology team, uh, led by Jason bomb and, uh, there's some significant multi hundred million dollar opportunities there. So we'll give you more details as we deliver on those. But um, this is a permanent cultural shift that United to drive drive efficiency,
Thanks so much for the time.
Speaker #5: Great. And Mike, maybe one for you on the '26 cost outlook. Obviously, not asking for guidance. But you just detailed a bunch of things that you were really excited about this year.
[Analyst] (Goldman Sachs): Great. Mike, maybe one for you on the 2026 cost outlook. Obviously, I understand not asking for guidance, but you just detailed a bunch of things that you were really excited about this year: the operation, the procurement. These are some pretty big numbers that you guys have gotten out of the system. I guess on the 2026 punch list, what are the opportunities you're most excited about? Is it just following down some of these same paths? How should we think about the opportunity to cost out this year versus the great success you had in 2025? Thanks.
Catie O’Brien: Great. Mike, maybe one for you on the 2026 cost outlook. Obviously, I understand not asking for guidance, but you just detailed a bunch of things that you were really excited about this year: the operation, the procurement. These are some pretty big numbers that you guys have gotten out of the system. I guess on the 2026 punch list, what are the opportunities you're most excited about? Is it just following down some of these same paths? How should we think about the opportunity to cost out this year versus the great success you had in 2025? Thanks.
Your next question comes from the line of Robbie chancre with Morgan Stanley. Your line is open.
Speaker #5: The operation, the procurement—these are some pretty big numbers that you guys have gotten out of the system. I guess on the '26 punch list, what are the opportunities you're most excited about?
Speaker #5: Is it just falling down some of these same paths? How should we think about the opportunity to cost out this year versus the great success you had in '25?
Uh, great thanks morning, everyone. Uh so it's pretty clear that you're fully your guide. Uh is quite conservative. I think you guys may have hinted at that in your comment as well. Uh just trying to get a sense of kind of is this as conservative as it usually is. Or do you see reasons to make it kind of even more conservative for 26? Just trying to get a sense of how many acts of God are in that school year guide, uh, for this year.
Speaker #5: Thanks.
Speaker #3: Yeah, I think—thanks, Katie, for the question. I think a continued strong operation, number one. I mentioned global procurement—we're just getting started there.
Michael Leskinen: Yeah. Thanks, Katie, for the question. I think a continued strong operation, number one. I mentioned global procurement. We're just getting started there, so you should see continued improvements on that front. And then we're working with our technology team led by Jason Birnbaum, and there's some significant multi-hundred million dollar opportunities there. So we'll give you more details as we deliver on those, but this is a permanent cultural shift at United to drive efficiency.
Michael Leskinen: Yeah. Thanks, Katie, for the question. I think a continued strong operation, number one. I mentioned global procurement. We're just getting started there, so you should see continued improvements on that front. And then we're working with our technology team led by Jason Birnbaum, and there's some significant multi-hundred million dollar opportunities there. So we'll give you more details as we deliver on those, but this is a permanent cultural shift at United to drive efficiency.
Speaker #3: So, you should see continued improvements on that front. And then we're working with our technology team, led by Jason Birnbaum, and there are some significant multi-hundred-million-dollar opportunities there.
Well, look, the, the way I would, obviously Scott said something last night about this, so if uh, it helps with the answer just a little bit, I suppose. But let's think about the process. You know, we, um, I think carefully about all these forecasts and we're pretty consistent on how we approach it. Um, you know, we did our forecast for 2026, uh, more than a few weeks ago. Um, and clearly, as we
Speaker #3: So, we'll give you more details as we deliver on those. But this is a permanent cultural shift at United to drive efficiency.
Speaker #5: Thanks so much for the
[Analyst] (Goldman Sachs): Thanks so much for the time.
Catie O’Brien: Thanks so much for the time.
Speaker #5: time. Your next
Operator: Your next question comes from the line of Ravi Shanker with Morgan Stanley. Your line is open.
Operator: Your next question comes from the line of Ravi Shanker with Morgan Stanley. Your line is open.
Speaker #1: Question comes from the line of Ravi Shanker with Morgan Stanley. Your line is open.
Speaker #1: open.
Speaker #4: Great. Thanks. Morning, everyone.
[Analyst] (Morgan Stanley): Great. Thanks. Morning, everyone. So it's pretty clear that your full year guide is quite conservative. I think you guys may have hinted at that in your comments as well. Just trying to get a sense of kind of is this as conservative as it usually is, or do you see reasons to make it kind of even more conservative for 2026? Just trying to get a sense of how many acts of God are in that full year guide for this year.
Ravi Shanker: Great. Thanks. Morning, everyone. So it's pretty clear that your full year guide is quite conservative. I think you guys may have hinted at that in your comments as well. Just trying to get a sense of kind of is this as conservative as it usually is, or do you see reasons to make it kind of even more conservative for 2026? Just trying to get a sense of how many acts of God are in that full year guide for this year.
Speaker #4: So it's pretty clear that you're fully guided is quite conservative. I think you guys may have hinted at that in your comments as well.
Speaker #4: Just trying to get a sense of kind of is this as conservative as it usually is, or do you see reasons to make it kind of even more conservative for '26?
Speaker #4: Just trying to get a sense of how many acts of God are in that fully guided for this year. Well, look, the way I would obviously, Scott said something last night about this.
Andrew Nocella: Well, look, the way I would obviously. Scott said something last night about this, so it helps with the answer just a little bit, I suppose. But let's think about the process. We think carefully about all these forecasts, and we're pretty consistent on how we approach it. We did our forecast for 2026 more than a few weeks ago. And clearly, as we refined it coming into the new year, we focused on refining it in Q1 because that's where we're at. And we focused less on refining it in Q2 and beyond because that's how we do the process. So we'll see how it goes. I'll just start off with the year's gotten off to a really great start. The international entities are looking pretty darn good, even the Caribbean, considering the situation we're facing there.
Andrew Nocella: Well, look, the way I would obviously. Scott said something last night about this, so it helps with the answer just a little bit, I suppose. But let's think about the process. We think carefully about all these forecasts, and we're pretty consistent on how we approach it. We did our forecast for 2026 more than a few weeks ago. And clearly, as we refined it coming into the new year, we focused on refining it in Q1 because that's where we're at. And we focused less on refining it in Q2 and beyond because that's how we do the process. So we'll see how it goes. I'll just start off with the year's gotten off to a really great start. The international entities are looking pretty darn good, even the Caribbean, considering the situation we're facing there.
Speaker #4: So it helps with the answer just a little bit, I suppose. But let's think about the process. We think carefully about all these forecasts.
Robbie, I just say um 2025 proved the year. If we talk about acts of God in this industry, you know, we got walloped uh the industry got walloped
Speaker #4: And we're pretty consistent on how we approach it. We did our forecast for 2026 more than a few weeks ago. And clearly, as we refined it coming into the new year, we focused on refining it in Q1 because that's where we're at.
Speaker #4: And we focused less on refining it in Q2 and beyond because that's how we do the process. So, we'll see how it goes. I'll just start off with, the year's gotten off to a really great start.
And I'm incredibly proud of United's full year results. Um, I'm particularly proud of the fourth quarter where we had a government shutdown. Just about every other major airline had to issue, 8 KS, uh, to update their guidance. And we delivered, uh, within our original guide. Um, uh, that is Testament to how we got a United Airlines, uh, to make sure that we deliver on our financial commitments. Uh, even in imperfect times in 2026, we'll be no different
Speaker #4: The international entities are looking pretty darn good. Even the Caribbean, considering the situation we're facing there. So we remain bullish. And business demand looks really pretty amazing right now.
Andrew Nocella: So we remain bullish, and business demand looks really pretty amazing right now. We'll see if that continues. If all of that continues, which I assure you we think it is, and Scott definitely thinks it is, our forecast will prove to be more conservative than it usually is. That's all I'll go with at this point. Maybe Mike wants to add to that.
So we remain bullish, and business demand looks really pretty amazing right now. We'll see if that continues. If all of that continues, which I assure you we think it is, and Scott definitely thinks it is, our forecast will prove to be more conservative than it usually is. That's all I'll go with at this point. Maybe Mike wants to add to that.
Speaker #4: And we'll see if that continues. If all of that continues, which I assure you we think it is—and Scott definitely thinks it is.
Speaker #4: Our forecast will prove to be more conservative than it usually is. But that's all I'll go with at this point. Maybe Mike wants to add to that.
Uh, very helpful and on that note, kind of obviously you guys are coming to the end of the United next kind of original guidance range. I mean 2026 seemed like an eternity away back in 21. But, but here we are, uh, so what can we expect next, in terms of like, when do we get the next set of long-term targets from you guys. Obviously incremental, loyalty to see what we're going to uh what the timing on that and what is the forum for that? Thank you.
Speaker #3: Robbie, I'd just say 2025 proved a year. If we talk about acts of God in this industry, we got walloped. The industry got walloped.
Michael Leskinen: Ravi, I'd just say 2025 proved the year. If we talk about acts of God in this industry, we got walloped. The industry got walloped. I'm incredibly proud of United's full year results. I'm particularly proud of the fourth quarter, where we had a government shutdown. Just about every other major airline had to issue 8-Ks to update their guidance, and we delivered within our original guide. That is testament to how we guide at United Airlines to make sure that we deliver on our financial commitments, even in imperfect times. 2026 will be no different.
Michael Leskinen: Ravi, I'd just say 2025 proved the year. If we talk about acts of God in this industry, we got walloped. The industry got walloped. I'm incredibly proud of United's full year results. I'm particularly proud of the fourth quarter, where we had a government shutdown. Just about every other major airline had to issue 8-Ks to update their guidance, and we delivered within our original guide. That is testament to how we guide at United Airlines to make sure that we deliver on our financial commitments, even in imperfect times. 2026 will be no different.
Speaker #3: And I'm incredibly proud of United's full year results. I'm particularly proud of the fourth quarter, where we had a government shutdown—just about every other major airline had to issue 8-Ks.
Speaker #3: To update their guidance. And we delivered within our original guide. That is a testament to how we guide at United Airlines to make sure that we deliver on our financial commitments even in imperfect times.
Hey, Robbie, I mean, I am thinking about that. Um, and, you know, all of our, uh, quarterly calls. And frankly, when we go to conferences, we talked, uh, I think we talked very big picture, very long term, um, which is serving us. Well, um, it is important that we have long-term goals that we communicate with the investor base. Uh, at this point in time, our our commitment to get the double digit margins, our commitment to get the free cash flow conversion of 75.
Speaker #3: In 2026, we'll be no different.
5% are convinced commitment to get to investment grade. Those are the longer term benchmarks that we're fighting for. Um, and so I, I feel like we're in a pretty good position around the long-term targets. Uh, at this time,
Speaker #4: Very helpful. And on that note, kind of obviously, you guys are coming to the end of the United Next kind of original guidance range.
[Analyst] (Morgan Stanley): Very helpful. On that note, kind of obviously, you guys are coming to the end of the United Next kind of original guidance range. I mean, 2026 seemed like an eternity away back in 2021, but here we are. So what can we expect next in terms of when do we get the next set of long-term targets from you guys? Obviously, incremental loyalty updates are kind of what's the timing on that, and what is the forum for that? Thank you.
Ravi Shanker: Very helpful. On that note, kind of obviously, you guys are coming to the end of the United Next kind of original guidance range. I mean, 2026 seemed like an eternity away back in 2021, but here we are. So what can we expect next in terms of when do we get the next set of long-term targets from you guys? Obviously, incremental loyalty updates are kind of what's the timing on that, and what is the forum for that? Thank you.
Speaker #4: I mean, 2026 seemed like an eternity away back in '21, but here we are. So, what can we expect next in terms of when we get the next set of long-term targets from you guys?
Speaker #4: Obviously, incremental loyalty disclosure—what's the timing on that, and what is the forum for that? Thank you.
Speaker #3: Hey, Robbie. I am thinking about that. And all of our quarterly calls, and frankly, when we go to conferences, I think we talk very big picture, very long-term.
Michael Leskinen: Hey, Ravi. I am thinking about that. And all of our quarterly calls, and frankly, when we go to conferences, we talk, I think, very big picture, very long-term, which is serving us well. It is important that we have long-term goals that we communicate with the investor base. At this point in time, our commitment to get to double-digit margins, our commitment to get the Free Cash Flow conversion of 75%, our commitment to get to investment-grade, those are the longer-term benchmarks that we're fighting for. And so I feel like we're in a pretty good position around the long-term targets at this time.
Michael Leskinen: Hey, Ravi. I am thinking about that. And all of our quarterly calls, and frankly, when we go to conferences, we talk, I think, very big picture, very long-term, which is serving us well. It is important that we have long-term goals that we communicate with the investor base. At this point in time, our commitment to get to double-digit margins, our commitment to get the Free Cash Flow conversion of 75%, our commitment to get to investment-grade, those are the longer-term benchmarks that we're fighting for. And so I feel like we're in a pretty good position around the long-term targets at this time.
And I I'll just add, you know, we look forward to sharing what comes next? Um and what comes next is something that you know I've been thinking about in the entire commercial team has been thinking about for years uh because in order to prepare for what comes next. We need to put that into place uh with a lot of foresight and a lot of thought. So we look forward to sharing with all of you at some point in the future. But rest assured, uh, that we have a lot of, I think really great commercial plans and opportunities uh, for the latter part of this decade,
Very good. Thanks everyone.
Your next question comes from the line of Jamie Baker with JP Morgan, your line is open.
Oh, good morning everybody. I'm Scott, I'm guessing the term Cal light. Just got a few dozen more Google searches today that any point in life. Well, you remember if you remember it without without oh yeah.
Andrew Nocella: I'll just add, we look forward to sharing what comes next. What comes next is something that I've been thinking about, and the entire commercial team has been thinking about for years. Because in order to prepare for what comes next, we need to put that into place with a lot of foresight and a lot of thought. So we look forward to sharing with all of you at some point in the future. But rest assured that we have a lot of, I think, really great commercial plans and opportunities for the latter part of this decade.
Andrew Nocella: I'll just add, we look forward to sharing what comes next. What comes next is something that I've been thinking about, and the entire commercial team has been thinking about for years. Because in order to prepare for what comes next, we need to put that into place with a lot of foresight and a lot of thought. So we look forward to sharing with all of you at some point in the future. But rest assured that we have a lot of, I think, really great commercial plans and opportunities for the latter part of this decade.
No, I appreciated the comments so um Andrew sorry, I'm just getting over cold here. Um, Andrew and you're prepared remarks and and also the Conor a few minutes ago, you know, you mentioned that, you know, some degree of unprofitable domestic flying out. There is increasingly a function of Hub and spoke peers as opposed to the usual domestic discount or suspects now
[Analyst] (Morgan Stanley): Very good. Thanks, everyone.
Ravi Shanker: Very good. Thanks, everyone.
Operator: Your next question comes from the line of Jamie Baker with JP Morgan. Your line is open.
Operator: Your next question comes from the line of Jamie Baker with JP Morgan. Your line is open.
Scott Kirby: Good morning, everybody. Scott, I'm guessing the term Cal Light just got a few dozen more Google searches today than at any point in life.
Jamie Baker: Good morning, everybody. Scott, I'm guessing the term Cal Light just got a few dozen more Google searches today than at any point in life.
Now in the case of Discounters, I think it was very reasonable to assume that a lot of that would go away. Just given the Staggering systemwide losses but the difference with certain Hub and spoke competitors that you reference, you know, their returns are sub subsidized by loyalty and premium. So, you know, put differently Discounters had no choice but to back off, you know, as Scott likes to say, it's just math. Um, but Hub and spoke appears do have a choice. I'm curious if you agree with that, and if you do, does it influence your confidence, that ultimately, some of these competitors do call that loss producing capacity,
[Analyst] (Wolfe Research): Well, you remember it without Continental Lite.
Scott Kirby: Well, you remember it without Continental Lite.
Scott Kirby: Oh, yeah. No, I appreciated the comment. So Andrew, sorry, I'm just getting over cold here. Andrew, in your prepared remarks and also to Connor a few minutes ago, you mentioned that some degree of unprofitable domestic flying out there is increasingly a function of hub-and-spoke peers as opposed to the usual domestic discounter suspects. Now, in the case of discounters, I think it was very reasonable to assume that a lot of that would go away just given the staggering system-wide losses. But the difference with certain hub-and-spoke competitors that you reference, their returns are subsidized by loyalty and premium. So put differently, discounters had no choice but to back off. As Scott likes to say, it's just math. But hub-and-spoke peers do have a choice. I'm curious if you agree with that.
Jamie Baker: Oh, yeah. No, I appreciated the comment. So Andrew, sorry, I'm just getting over cold here. Andrew, in your prepared remarks and also to Connor a few minutes ago, you mentioned that some degree of unprofitable domestic flying out there is increasingly a function of hub-and-spoke peers as opposed to the usual domestic discounter suspects. Now, in the case of discounters, I think it was very reasonable to assume that a lot of that would go away just given the staggering system-wide losses. But the difference with certain hub-and-spoke competitors that you reference, their returns are subsidized by loyalty and premium. So put differently, discounters had no choice but to back off. As Scott likes to say, it's just math. But hub-and-spoke peers do have a choice. I'm curious if you agree with that.
Yeah, I think it's a really good question. Um, I I think economic gravity is uh, the same for all and money, loosen businesses need to figure that out and do something different. Um, and in this case, you know, I do think money losing routes or hubs should should ultimately be close. I, you know, I have some experience in this. I worked on closing a number of hubs uh in my career at different airlines, not not at United obviously. Um and these these decisions are complicated and big but ultimately uh it was making rational capacity decisions and recognizing what makes money and what loses money. Uh, kind of has led at least United uh to where we are today and there's only 1 other Airline. I think that can say that all of their hubs make money and so I still have a lot of confidence. I just don't know when but I have a lot of confidence that money losing flights will eventually exit.
Scott Kirby: If you do, does it influence your confidence that ultimately some of these competitors do cull that loss-producing capacity?
If you do, does it influence your confidence that ultimately some of these competitors do cull that loss-producing capacity?
Andrew Nocella: Yeah. I think it's a really good question. I think economic gravity is the same for all, and money-losing businesses need to figure that out and do something different. And in this case, I do think money-losing routes or hubs should ultimately be closed. I have some experience in this. I've worked on closing a number of hubs in my career at different airlines, not at United, obviously. And these decisions are complicated and big. But ultimately, it was making rational capacity decisions and recognizing what makes money and what loses money kind of has led, at least United, to where we are today. And there's only one other airline, I think, that can say that all of their hubs make money. And so I still have a lot of confidence.
Andrew Nocella: Yeah. I think it's a really good question. I think economic gravity is the same for all, and money-losing businesses need to figure that out and do something different. And in this case, I do think money-losing routes or hubs should ultimately be closed. I have some experience in this. I've worked on closing a number of hubs in my career at different airlines, not at United, obviously. And these decisions are complicated and big. But ultimately, it was making rational capacity decisions and recognizing what makes money and what loses money kind of has led, at least United, to where we are today. And there's only one other airline, I think, that can say that all of their hubs make money. And so I still have a lot of confidence.
At the system, uh, and Airlines will, you know, move to what they do best. And uh, uh, the industry would be better off and all the airlines will be better off, but I don't know when and and it may be a while and they do have a lot longer Runway, uh, than other airlines for all the reasons you said earlier. Uh but again I'll go with economic gravity applies to all okay.
Just with my opening remarks about Andrew and Glenn. Being the 2 world, they have each closed 3, hubs that I can count in my career. Um, the most important thing for a successful commercial airline is know when
pull out of loss making markets, it's emotionally hard to do very few people have the discipline to do it. Um it is the most important characteristic for somebody that's going to run a network at any airline in the world.
And it's rare.
Andrew Nocella: I just don't know when, but I have a lot of confidence that money-losing flights will eventually exit the system, and airlines will move to what they do best. And the industry will be better off, and all the airlines will be better off. But I don't know when, and it may be a while, and they do have a lot longer runway than other airlines for all the reasons you said earlier. But again, I'll go with economic gravity applies to all.
I just don't know when, but I have a lot of confidence that money-losing flights will eventually exit the system, and airlines will move to what they do best. And the industry will be better off, and all the airlines will be better off. But I don't know when, and it may be a while, and they do have a lot longer runway than other airlines for all the reasons you said earlier. But again, I'll go with economic gravity applies to all.
I appreciate that. Um, Scott and Andrew, and then just a quick follow-up, you know, something Android. I think you, and I were discussing it in person not so long ago or maybe me and Patrick. But, um, you know, the fact that many of your recent International editions were coming in at a margin premium to their geography as opposed to a, you know, a deficit that would hopefully rise over time. I'm, I'm curious if that's still the case. And if it is
Scott Kirby: Okay. All right. By the way, Jamie, I'll just get it since Andrew talked about closing hubs. Say one of the things that just was my opening remarks about Andrew and Glen being the two best in the world. They have each closed three hubs that I can count in my career. The most important thing for a successful commercial airline is know when to pull out of loss-making markets. It's emotionally hard to do. Very few people have the discipline to do it. It is the most important characteristic for somebody that's going to run a network at any airline in the world. And it's rare. I appreciate that. Scott, Andrew, and then just a quick follow-up. Something, Andrew, I think you and I were discussing it in person not so long ago, or maybe it was me and Patrick.
Jamie Baker: Okay. All right.
Scott Kirby: By the way, Jamie, I'll just get it since Andrew talked about closing hubs. Say one of the things that just was my opening remarks about Andrew and Glen being the two best in the world. They have each closed three hubs that I can count in my career. The most important thing for a successful commercial airline is know when to pull out of loss-making markets. It's emotionally hard to do. Very few people have the discipline to do it. It is the most important characteristic for somebody that's going to run a network at any airline in the world. And it's rare.
How long can that continue? And should we assume that those premium margins get competed away over time or or are they sustainable? Which would imply the broader? Geography also gets more profitable
Jamie Baker: I appreciate that. Scott, Andrew, and then just a quick follow-up. Something, Andrew, I think you and I were discussing it in person not so long ago, or maybe it was me and Patrick.
Scott Kirby: But the fact that many of your recent international additions were coming in at a margin premium to their geography as opposed to a deficit that would hopefully rise over time. I'm curious if that's still the case. And if it is, how long can that continue? And should we assume that those premium margins get competed away over time, or are they sustainable, which would imply the broader geography also gets more profitable? Holding other inputs constant.
But the fact that many of your recent international additions were coming in at a margin premium to their geography as opposed to a deficit that would hopefully rise over time. I'm curious if that's still the case. And if it is, how long can that continue? And should we assume that those premium margins get competed away over time, or are they sustainable, which would imply the broader geography also gets more profitable? Holding other inputs constant.
Holding puts constant. Yeah, yeah. That that's a very broad question. And look, I would say, um, that, uh, there's nobody better in the world that Patrick than looking at these opportunities. And, um, what we have found, which I think is contrary to normal, is that the fruit uh, that we're picking up the tree after all these years continues to be excellent. In other words, um, we're able to find a different opportunities because the world is getting smaller. The aircraft technology, obviously, with the 787 has changed, um, but most importantly United is different today than it was a decade ago. And our differences, um, in the traction of brand loyal customers is Scott often says, uh, our product. Everything we do has enabled us, uh, to add these new routes that couldn't have been done years ago and add them at higher margins than the bulk of what the airline has done. So it's it's a remarkable Journey. Um, and I think on the international front, we're frankly just getting started, New York, San Francisco, Washington.
Andrew Nocella: Yeah. That's a very broad question. And look, I would say that there's nobody better in the world at partnering than looking at these opportunities. And what we have found, which I think is contrary to normal, is that the fruit that we're picking off the tree after all these years continues to be excellent. In other words, we're able to find different opportunities because the world is getting smaller. The aircraft technology, obviously, with the 787 has changed. But most importantly, United is different today than it was a decade ago. And our differences in the attraction of brand loyal customers, as Scott often says, our product, everything we do has enabled us to add these new routes that couldn't have been done years ago and add them at higher margins than the bulk of what the airline has done. So it's a remarkable journey.
Andrew Nocella: Yeah. That's a very broad question. And look, I would say that there's nobody better in the world at partnering than looking at these opportunities. And what we have found, which I think is contrary to normal, is that the fruit that we're picking off the tree after all these years continues to be excellent. In other words, we're able to find different opportunities because the world is getting smaller. The aircraft technology, obviously, with the 787 has changed. But most importantly, United is different today than it was a decade ago. And our differences in the attraction of brand loyal customers, as Scott often says, our product, everything we do has enabled us to add these new routes that couldn't have been done years ago and add them at higher margins than the bulk of what the airline has done. So it's a remarkable journey.
And La, when you combine all those together, going across the Pacific and the Atlantic or they're just an amazing opportunity and I think obviously you know that the a321 XLR is uh being made for us and uh will arrive. And we're going to use that aircraft for its capabilities. Not unlike Continental did 20 plus years ago with the 757 and I think we'll be the only airline to use the aircraft in, in a way that really does bring on a bunch of new markets. Uh, we're not
Trying to down gauge over gauge, widebody Jets. Uh, for example, uh, we're looking to expand our, our Network and our scope and our, our depth. Um, and there's just a lot more to come on this front and so kudos to the whole United Team. Uh, it is just an amazing achievement. And uh, we look forward to seeing what our International network will look like a decade from now.
That's great. Thanks everybody.
Your next question comes from the line of Tom Fitzgerald with TD Cowen, your line is open.
Andrew Nocella: And I think on the international front, we're frankly just getting started. New York, San Francisco, Washington, and LA, when you combine all those together, going across the Pacific and the Atlantic, they're just amazing opportunities. And I think, obviously, you know that the A321XLR is being made for us and will arrive, and we're going to use that aircraft for its unique capabilities, not unlike Continental did 20-plus years ago with the 757. And I think we'll be the only airline to use the aircraft in a way that really does bring on a bunch of new markets. We're not trying to down-gauge, over-gauge wide-body jets, for example. We're looking to expand our network and our scope and our depth. And there's just a lot more to come on this front. And so kudos to the whole United team.
And I think on the international front, we're frankly just getting started. New York, San Francisco, Washington, and LA, when you combine all those together, going across the Pacific and the Atlantic, they're just amazing opportunities. And I think, obviously, you know that the A321XLR is being made for us and will arrive, and we're going to use that aircraft for its unique capabilities, not unlike Continental did 20-plus years ago with the 757. And I think we'll be the only airline to use the aircraft in a way that really does bring on a bunch of new markets. We're not trying to down-gauge, over-gauge wide-body jets, for example. We're looking to expand our network and our scope and our depth. And there's just a lot more to come on this front. And so kudos to the whole United team.
All right, thanks very much for the time I wondered if you could expand a little bit on the distinction between the Loyalty program and the rewards program, you've commented on that that a few times I'd love to hear like how investors should think about Mileage, Plus being differentiated.
Andrew Nocella: It is just an amazing achievement, and we look forward to seeing what our international network will look like a decade from now.
It is just an amazing achievement, and we look forward to seeing what our international network will look like a decade from now.
Sure. I, you know, I think the most simple way to think about it is turn of members. Uh, people join our program and stay with it, just about forever and people grab and get our credit card and stay with it for a very, very long time period. So we have very little churn in our programs and therefore, we don't need to do extraordinary things, uh, to attract people to united. We already have done it with a great product, a great Network, um, and rewards that they really want, which as travel, like people really want a first class seat or a Polaris seat to Tahiti, as a reward. And all of the other programs out there, tend to use, uh, you know, constant, uh, bonus points and other benefits and have a lot of revolve around.
Operator: Your next question comes from the line of Tom Fitzgerald with TD Cowen. Your line is open.
Operator: Your next question comes from the line of Tom Fitzgerald with TD Cowen. Your line is open.
[Analyst] (TD Cowen): Hi. Thanks very much for the time. I'm wondering if you could expand a little bit on the distinction between a loyalty program and an awards program. You've commented on that a few times. I'd love to hear how investors should think about MileagePlus being differentiated.
[Analyst] (TD Cowen): Hi. Thanks very much for the time. I'm wondering if you could expand a little bit on the distinction between a loyalty program and an awards program? You've commented on that a few times. I'd love to hear how investors should think about MileagePlus being differentiated.
Customers going in and out switching credit cards, so on and so forth, often, uh, to game the systems. And I, I just think an airline program and particularly the United program is different. And as we approach the future, we should harness the power of that to figure out how we can make it even stickier and grow out faster, which is what we'll talk about in the next, uh, you know, 10 or 12 weeks.
Andrew Nocella: Sure. I think the most simple way to think about it is churn of members. People join our program and stay with it just about forever, and people grab and get our credit card and stay with it for a very, very long time period. So we have very little churn in our programs, and therefore we don't need to do extraordinary things to attract people to United. We already have done it with a great product, a great network, and rewards that they really want, which is travel. People really want a first-class seat or a Polaris seat to Tahiti as a reward. And all of the other programs out there tend to use constant bonus points, and other benefits, and have a lot of revolve around customers going in and out, switching credit cards, so on and so forth, often to game the systems.
Andrew Nocella: Sure. I think the most simple way to think about it is churn of members. People join our program and stay with it just about forever, and people grab and get our credit card and stay with it for a very, very long time period. So we have very little churn in our programs, and therefore we don't need to do extraordinary things to attract people to United. We already have done it with a great product, a great network, and rewards that they really want, which is travel. People really want a first-class seat or a Polaris seat to Tahiti as a reward. And all of the other programs out there tend to use constant bonus points, and other benefits, and have a lot of revolve around customers going in and out, switching credit cards, so on and so forth, often to game the systems.
Okay, that that's really helpful. And then, um, this is a quick follow-up. It seems like a important monument that, uh, 2025 is the high water mark on domestic capacity growth. So maybe just um, reminding investors that they should think about. Um, you know, as you guys Harvest, some of the gains as as from achieving your United next Investments, thanks for the time.
Andrew Nocella: I just think an airline program, and particularly the United program, is different. As we approach the future, we should harness the power of that to figure out how we can make it even stickier and grow it faster, which is what we'll talk about in the next 10 or 12 weeks.
I just think an airline program, and particularly the United program, is different. As we approach the future, we should harness the power of that to figure out how we can make it even stickier and grow it faster, which is what we'll talk about in the next 10 or 12 weeks.
[Analyst] (TD Cowen): Okay. That's really helpful. And then just as a quick follow-up, it seems like an important milestone that 2025 is a high watermark on domestic capacity growth. So maybe just remind investors how they should think about as you guys harvest some of the gains from achieving your United Next investments. Thanks again for the time.
[Analyst] (TD Cowen): Okay. That's really helpful. And then just as a quick follow-up, it seems like an important milestone that 2025 is a high watermark on domestic capacity growth. So maybe just remind investors how they should think about as you guys harvest some of the gains from achieving your United Next investments. Thanks again for the time.
We announced the growth. Uh, that would come from the connectivity. The growth was always the outcome of the connectivity. Uh, we weren't growing for growth sake. Uh, I think that's really important. And I remember at the time we we did distinguish that not all growth is equal, uh, which was really controversial, uh, back in 2021 because I think many thought it was and I think we proved it was not. So as we've gone through the whole cycle of United, next, we are approaching our connectivity goals. We'll hit them in 2027, uh, probably a year late given some of the delivery delays we experienced from being but, um, uh, close on time in the grand scheme of things. Um, and as we do that, you know, our hubs have reached this critical level, um, around 650 flights per day. In our Mid Continent, hubs with a lot of connectivity, big Banks, uh, and large airplanes. It's exactly what we were contemplating. So as we go forward past 2027, um, you know, we're going to be a lot more focused on gauge and and grow in our operation. That way versus more.
Andrew Nocella: Sure. In 2021, we announced United Next, and we announced the growth that would come from the connectivity. The growth was always the outcome of the connectivity. We weren't growing for growth's sake. I think that's really important. And I remember at the time we did distinguish that not all growth is equal, which was really controversial back in 2021 because I think many thought it was. And I think we proved it was not. So as we've gone through the whole cycle of United Next, we are approaching our connectivity goals. We'll hit them in 2027, probably a year late given some of the delivery delays we experienced from Boeing, but close on time in the grand scheme of things.
Andrew Nocella: Sure. In 2021, we announced United Next, and we announced the growth that would come from the connectivity. The growth was always the outcome of the connectivity. We weren't growing for growth's sake. I think that's really important. And I remember at the time we did distinguish that not all growth is equal, which was really controversial back in 2021 because I think many thought it was. And I think we proved it was not. So as we've gone through the whole cycle of United Next, we are approaching our connectivity goals. We'll hit them in 2027, probably a year late given some of the delivery delays we experienced from Boeing, but close on time in the grand scheme of things.
Flights. We do think there's a point when hubs grow past 900 flights per day. For example, that the marginal economics become really challenging you compete against yourself, um, and you could drive a lot of operational, complexity, no matter how many runways you have available, uh, to fly from. So, we really like our plan. It's, uh, based on moderate frequency levels and large aircraft. Um, and I don't want to give too much of a preview for what comes next, but that was a, a good hint, um, as to where we're going. But so that's the high.
Hi, Watermark comment is related to all of that. Um, and um, you know, I'm glad to get back to uh, focused on engage in 2027 and Beyond. I think it's going to be very lucrative for the business.
Speaker #4: But close on time in the grand scheme of things. And as we do that, our hubs have reached this critical level. Around 650 flights per day in our mid-continent hubs with a lot of connectivity.
Andrew Nocella: And as we do that, our hubs have reached this critical level, around 650 flights per day in our mid-continent hubs with a lot of connectivity, big banks, and large airplanes. It's exactly what we were contemplating. So as we go forward past 2027, we're going to be a lot more focused on gauge and growing our operation that way versus more flights. We do think there's a point when hubs grow past 900 flights per day, for example, that the marginal economics become really challenging. You compete against yourself, and you drive a lot of operational complexity no matter how many runways you have available to fly from. So we really like our plan. It's based on moderate frequency levels and large aircraft. And I don't want to give too much of a preview for what comes next, but that was a good hint as to where we're going.
And as we do that, our hubs have reached this critical level, around 650 flights per day in our mid-continent hubs with a lot of connectivity, big banks, and large airplanes. It's exactly what we were contemplating. So as we go forward past 2027, we're going to be a lot more focused on gauge and growing our operation that way versus more flights. We do think there's a point when hubs grow past 900 flights per day, for example, that the marginal economics become really challenging. You compete against yourself, and you drive a lot of operational complexity no matter how many runways you have available to fly from. So we really like our plan. It's based on moderate frequency levels and large aircraft. And I don't want to give too much of a preview for what comes next, but that was a good hint as to where we're going.
Your next question comes from the line of Brandon olinsky with Barclays. Your line is open.
Speaker #4: airplanes. It's exactly what we were contemplating. So as we go forward past 2027, we're going to be a lot more focused on gauge and growing our operation that way versus more flights.
Speaker #4: we really like our plan. It's based on moderate frequency levels and large aircraft. And I don't want to give too much of a preview for what comes next, but that was a good hint.
Speaker #4: to where we're going. So that's the high-water mark comment is related to all of that. And I'm glad to get back to focus on gauge in 2027 and beyond.
Andrew Nocella: But, so that's the high watermark comment is related to all of that. I'm glad to get back to focusing on gauge in 2027 and beyond. I think it's going to be very lucrative for the business.
But, so that's the high watermark comment is related to all of that. I'm glad to get back to focusing on gauge in 2027 and beyond. I think it's going to be very lucrative for the business.
Hey, good morning and thanks for taking the question, and congrats to the team on, uh, what was a pretty good year and a tough environment. But Scott and I don't mean to kiss up too much here. But I think a lot of folks in this call really appreciate your industry commentary. And a lot of your uh projections have been correct the last few years. Can we talk about just broader industry growth? Because if we look at Revenue to GDP or even Revenue growth last year was effectively flat versus GDP that was up you know, 3 or 4% nominal or real. Um do you think this signals that we're just like in a shrinking industry now or has Zoom taken over or has this really been, you know, too much low cost capacity in the industry just can't get pricing. What's what's your prognosis with you? Uh, it's a supply chain problem, it's not a demand challenge, it's a supply problem. Um, and it's a supply problem. I'm not going to call it low-cost capacity. It's a supply problem with spill carriers um,
Speaker #4: lucrative for the business.
and, you know, Andrew said it and um,
I'll repeat it like economic gravity. Ultimately wins doesn't win overnight.
Speaker #1: Your next question comes from the line of
Operator: Your next question comes from the line of Brandon Oglenski with Barclays. Your line is open.
Operator: Your next question comes from the line of Brandon Oglenski with Barclays. Your line is open.
Speaker #1: Brandon Oglinsky with Barclays.
Speaker #1: Your line is open.
Speaker #6: Hey,
Speaker #6: good morning.
Andrew Nocella: Hey, good morning, and thanks for taking the question. Congrats to the team on what was a pretty good year in a tough environment. But Scott, and I don't mean to kiss up too much here, but I think a lot of folks on this call really appreciate your industry commentary, and a lot of your projections have been correct the last few years. Can we talk about just broader industry growth? Because if we look at revenue to GDP, or even revenue growth last year was effectively flat versus GDP that was up 3% or 4% nominal or real, do you think this signals that we're just in a shrinking industry now, or has Zoom taken over, or has this really been too much low-cost capacity, and the industry just can't get pricing? What's your prognosis?
Brandon Oglenski: Hey, good morning, and thanks for taking the question. Congrats to the team on what was a pretty good year in a tough environment. But Scott, and I don't mean to kiss up too much here, but I think a lot of folks on this call really appreciate your industry commentary, and a lot of your projections have been correct the last few years. Can we talk about just broader industry growth? Because if we look at revenue to GDP, or even revenue growth last year was effectively flat versus GDP that was up 3% or 4% nominal or real, do you think this signals that we're just in a shrinking industry now, or has Zoom taken over, or has this really been too much low-cost capacity, and the industry just can't get pricing? What's your prognosis?
Speaker #6: broader industry growth? Because if we look at revenue to GDP or even revenue growth last year was effectively flat versus GDP that was up 3 or 4% nominal or real.
Speaker #6: Do you think this signals that
Speaker #6: we're just in a shrinking industry now? Or has Zoom taken over? Or has this really been too much low-cost capacity in the industry just can't get pricey?
Speaker #6: your prognosis? Oh, yeah. And congrats
Speaker #4: It's a
Scott Kirby: It's a supply challenge problem. It's not a demand challenge. It's a supply problem. It's a supply problem I'm not going to call it low-cost capacity. It's a supply problem with spill carriers. Andrew said it, and I'll repeat it. It's like economic gravity ultimately wins. Doesn't win overnight. Ego usually beats economic gravity in the short term. But economic gravity always wins in the end. I feel pretty optimistic that even in this environment, well, so really good, even in this environment, how well United is doing, the brand loyal strategy, I thought was going to be successful. I've been on this path with Andrew for really for 20 years. We switched airlines, but we've been on this path for 20 years. I thought it would be successful. It is more successful than I thought.
Scott Kirby: It's a supply challenge problem. It's not a demand challenge. It's a supply problem. It's a supply problem I'm not going to call it low-cost capacity. It's a supply problem with spill carriers. Andrew said it, and I'll repeat it. It's like economic gravity ultimately wins. Doesn't win overnight. Ego usually beats economic gravity in the short term. But economic gravity always wins in the end. I feel pretty optimistic that even in this environment, well, so really good, even in this environment, how well United is doing, the brand loyal strategy, I thought was going to be successful. I've been on this path with Andrew for really for 20 years. We switched airlines, but we've been on this path for 20 years. I thought it would be successful. It is more successful than I thought.
Speaker #4: supply challenge problem. It's not a demand challenge. It's a supply problem. And it's a supply problem. I'm not going to call it low-cost capacity.
Speaker #4: problem with spill carriers. And Andrew said it. And I'll repeat it. Economic gravity ultimately wins. Doesn't win overnight. Ego usually beats economic gravity in the short term.
Ego usually beats economic gravity in the short term. Um, but economic gravity always wins in the end. Um, and you know, I I feel pretty optimistic, um, that even in this environment, I'm also really good. Even in this environment, how well you United is doing the brand loyal strategy, I thought was going to be successful. I've been on this path with Andrew for really for 20 years. We switched Airlines but we've been on this path for 20 years. I thought it would be successful. It is more successful than I thought, like, it is remarkable. How much resilience we have in bad times or to competitive activities? Um, and um, and so that's good. Um, but you know, you, you know, I look at some of the flying at competitors and it's going to push north of negative 20% margins this year and you can do that now for a little bit of time. Um, but when the down I I I actually I to be honest with you, I think that Supply really comes out when the next downturn hits. The next downturn is going to make it um, extremely
Intense for airlines that are going into it with break, even issues margins in Good Times. Um and so I think that's probably what it takes for the next.
Speaker #4: gravity always wins in the end. And I feel pretty optimistic that even in this environment, we're also really good. Even in this environment, how well United is doing, the brand loyal strategy, I thought was going to be successful.
Speaker #4: I've been on this path with I think it's going to be very But economic next question comes from the line of Michael And thanks for taking the question.
Speaker #4: Andrew for really 20 years. We switched airlines, but we've been on this path for 20 years. I thought it would be successful. It is more successful than I thought.
Scott Kirby: It is remarkable how much resilience we have in bad times or to competitive activities. So that's good. But I look at some of the flying at competitors, and it's going to push north of negative 20% margins this year. You can do that for a little bit of time. I actually, to be honest with you, think the supply really comes out when the next downturn hits. The next downturn is going to make it extremely tense for airlines that are going into it with break-even-ish margins in good times. So I think that's probably what it takes for the next kind of wave of supply. So I think we'll do okay in Main Cabin between now and then. We'll do well in premium.
It is remarkable how much resilience we have in bad times or to competitive activities. So that's good. But I look at some of the flying at competitors, and it's going to push north of negative 20% margins this year. You can do that for a little bit of time. I actually, to be honest with you, think the supply really comes out when the next downturn hits. The next downturn is going to make it extremely tense for airlines that are going into it with break-even-ish margins in good times. So I think that's probably what it takes for the next kind of wave of supply. So I think we'll do okay in Main Cabin between now and then. We'll do well in premium.
Speaker #4: much resilience we have in bad times or to competitive activities. And so that's good. But I look at some of the flying at competitors and it's going to push north of negative 20% margins this year.
Kind of wave of Supply. So I think we'll do okay in main cabin between now and then we'll do well in premium. Um I think to an earlier question, you know we are targeting you know growing margins you know adjusted for any kind of anomalies that happen growing margins of point a year that means we got to make up a point from last year by the way. Um and I think that takes us into, you know, the low double digits. Um and I think in the next downturn hits coming out on the other side of it and the supply comes out we come out with midday with mid teens margins. Um so yeah, that's a long answer but off the cuff but that's what I think is going to happen.
I appreciate the comments, Scott. Thank you.
Speaker #4: You can do that for a little bit of time. But when the down actually, to be honest with you, I think that supply really comes out when the next downturn hits.
Your next question comes from the line of Michael lehnenberg with Deutsche Bank. Your line is open,
Speaker #4: next downturn is going to make it extremely tense for airlines that are going into it with break-even-ish margins in good times. And so I think that's probably what it takes for the next kind of wave of supply.
Speaker #4: in main cabin between now and then. We'll do well in premium. I think to an earlier question, we are targeting growing margins adjusted for any kind of anomalies that happen, but growing margins a point a year.
Scott Kirby: I think, to an earlier question, we are targeting growing margins adjusted for any kind of anomalies that happen, but growing margins at one point a year. That means we got to make up a point from last year, by the way. And I think that takes us into the low double digits. And then I think when the next downturn hits, coming out on the other side of it and the supply comes out, we come out with mid-teens margins. So that's a long answer, but off the cuff, but that's what I think is going to happen.
I think, to an earlier question, we are targeting growing margins adjusted for any kind of anomalies that happen, but growing margins at one point a year. That means we got to make up a point from last year, by the way. And I think that takes us into the low double digits. And then I think when the next downturn hits, coming out on the other side of it and the supply comes out, we come out with mid-teens margins. So that's a long answer, but off the cuff, but that's what I think is going to happen.
Touching back on kind of what Jamie brought up. Um, you know, I think the prevailing view is that domestic will be the best performing geography in 2026. Maybe domestic Raza maybe profitability. But when I think about, you know, the fact that, you know, 1 of your competitors in Chicago is adding a lot of flights and I've seen reports that they're already losing, I don't know 7 or 800 million dollars you know, under their current schedule. Is that is that going to be a drag on your domestic to the point that you know?
Speaker #4: got to make up a point from last year, by the way. And I think that takes us into the low double digits and then I think when the next downturn hits coming out on the other side of it and the supply comes out, we come out with mid-teens margins as a long answer, but off the cuff, but that's what I think is going to happen.
Maybe it's transatlantic, maybe it's another geography that comes out on top. Or do you have maybe a diversified enough domestic Network? I mean you have a massive domestic Network that that will be more than overshadowed by strength in some of your other markets, like New York, for example, which is probably going to run very well in 2026.
[Analyst] (Wolfe Research): I appreciate the comment, Scott. Thank you.
Brandon Oglenski: I appreciate the comment, Scott. Thank you.
Speaker #5: you.
Operator: Your next question comes from the line of Michael Linenberg with Deutsche Bank. Your line is open.
Operator: Your next question comes from the line of Michael Linenberg with Deutsche Bank. Your line is open.
Speaker #1: Lenenberg with Deutsche Bank. Your
Brett Hart: Oh, yeah. Hey, good morning, everyone. Hey, just touching back on kind of what Jamie brought up. I think the prevailing view is that domestic will be the best-performing geography in 2026, maybe domestic rhythm, maybe profitability. But when I think about the fact that one of your competitors in Chicago is adding a lot of flights, and I've seen reports that they're already losing, I don't know, $700 or $800 million under their current schedule, is that going to be a drag on your domestic to the point that maybe it's transatlantic, maybe it's another geography that comes out on top, or do you have maybe a diversified enough domestic network? I mean, you have a massive domestic network that will be more than overshadowed by strength in some of your other markets like Newark, for example, which is probably going to run very well in 2026.
Michael Linenberg: Oh, yeah. Hey, good morning, everyone. Hey, just touching back on kind of what Jamie brought up. I think the prevailing view is that domestic will be the best-performing geography in 2026, maybe domestic rhythm, maybe profitability. But when I think about the fact that one of your competitors in Chicago is adding a lot of flights, and I've seen reports that they're already losing, I don't know, $700 or $800 million under their current schedule, is that going to be a drag on your domestic to the point that maybe it's transatlantic, maybe it's another geography that comes out on top, or do you have maybe a diversified enough domestic network? I mean, you have a massive domestic network that will be more than overshadowed by strength in some of your other markets like Newark, for example, which is probably going to run very well in 2026.
Speaker #7: Hey, good morning, everyone. Hey, just touching back on kind of what Jamie brought up. I think the prevailing view is that domestic will be the best-performing geography in 2026, maybe domestic res, maybe profitability.
Speaker #7: But when I think Big banks.
Speaker #7: about the fact that one of your competitors in Chicago is adding a lot of flights and I've seen reports that they're already losing, I don't know, 700 or 800 million dollars under their current schedule, is that going to be a drag on your domestic to the point that maybe it's transatlantic, maybe it's another geography that comes out on top?
Well, uh, thanks for the question. Mark, as of Friday, we will get through the call without addressing Chicago. Uh, so I'm happy to do it. Um, and it's a very good follow up to the last question that, um, as I talked about and I know we're at start with, you know, at United Airlines we've been a decade long strategy to build a brand of oil customer Airlines. Um, that is, that was all designed to get us out of the commoditized, part of the industry, where all that mattered was the schedule. Um, and that meant in both focusing on the product, the technology, and service to get customers to choose us. And that's been a really successful strategy. Um, it didn't happen overnight. It really has been a decade in the making, uh, but you can see the results and we've had market share in.
Speaker #7: Or do you have maybe a diversified enough domestic network? I mean, you have a massive domestic network that will be more than overshadowed by strength in some of your other markets like Newark, for example, which is probably going to run very well in 2026.
Speaker #4: Well, thanks for the question, Mike. I was afraid we were going to get through the call without addressing Chicago. So I'm happy to do
Scott Kirby: Well, thanks for the question, Mike. I was afraid we would get through the call without addressing Chicago, so I'm happy to do it. And it's probably a good follow-up to the last question that I thought I'd start. I already start with at United Airlines, we've been a decade-long strategy to build a brand loyal customer airline. That was all designed to get us out of the commoditized part of the industry where all that mattered was the schedule. And that meant focusing on the product, the technology, and service to get customers to choose us. That's been a really successful strategy. It didn't happen overnight. It really has been a decade in the making. But you can see the results, and we've had market share increases everywhere that we fly.
Scott Kirby: Well, thanks for the question, Mike. I was afraid we would get through the call without addressing Chicago, so I'm happy to do it. And it's probably a good follow-up to the last question that I thought I'd start. I already start with at United Airlines, we've been a decade-long strategy to build a brand loyal customer airline. That was all designed to get us out of the commoditized part of the industry where all that mattered was the schedule. And that meant focusing on the product, the technology, and service to get customers to choose us. That's been a really successful strategy. It didn't happen overnight. It really has been a decade in the making. But you can see the results, and we've had market share increases everywhere that we fly.
Increases everywhere that we fly. Um, in Chicago, to be specific. Um, you know, in 2016, American actually had higher local market share with with Chicago based customers, uh, and higher share with business customers. Um, in 2025 even after all the growth from our competitor. Uh, United now has a 22-point lead with Chicago, based customers in Chicago and a 38 point lead with the brand loyal business customers.
um,
being a brand oil Airline just really
Scott Kirby: In Chicago, to be specific, in 2016, American actually had higher local market share with Chicago-based customers and higher share with business customers. In 2025, even after all the growth from our competitor, United now has a 22-point lead with Chicago-based customers in Chicago, and a 38-point lead with the brand loyal business customers. Being a brand loyal airline just really inoculates us mostly from that competitive activity. In fact, in 2025, even with all that growth, the Chicago RASM outperformed the rest of the system by 1%, and we made a $500 million profit. By the way, I think we probably would have made $600 million, so it probably cost us about $100 million. But our competitor lost $500 million, even though they didn't start that really until May, so bigger on a full-year basis.
In Chicago, to be specific, in 2016, American actually had higher local market share with Chicago-based customers and higher share with business customers. In 2025, even after all the growth from our competitor, United now has a 22-point lead with Chicago-based customers in Chicago, and a 38-point lead with the brand loyal business customers. Being a brand loyal airline just really inoculates us mostly from that competitive activity. In fact, in 2025, even with all that growth, the Chicago RASM outperformed the rest of the system by 1%, and we made a $500 million profit. By the way, I think we probably would have made $600 million, so it probably cost us about $100 million. But our competitor lost $500 million, even though they didn't start that really until May, so bigger on a full-year basis.
inoculates us mostly from that competitive activity. And in fact, in 2025, even with all that growth uh the Chicago rasim outperformed the rest of the system by 1%. Um and we made a 500 million profit by the way. I think we probably would have made 600 million so it probably cost us about a hundred billion dollars, but our competitor lost, 500 million. Um, even though they did start, that really, until May so bigger on a full year basis, um, as we get our 2026, uh, there's another wave of growth coming from that competitor. Um, mostly, that's going to wind up exactly the same as it did. Last year, was 1 difference in 2025 American had a gate. That means, you know, we watched it, we could have responded, we chose not to they're going to win 3 Gates back at our expense. When the announced comes out later this year, um, we knew that was going to happen. We figured we'd, just let it settle into a new normal and that would all be fine. Um, but in 2026
Scott Kirby: As we get into 2026, there's another wave of growth coming from that competitor. Mostly, that's going to wind up exactly the same as it did last year, with one difference. In 2025, American had a gate. That means we watched it. We could have responded. We chose not to. They're going to win three gates back at our expense when the analysis comes out later this year. We knew that was going to happen. We figured we'd just let it settle into a new normal, and that would all be fine. But in 2026, we're drawing a line in the sand. We are not going to allow them to win a single gate at our expense in 2026. We're not trying to win gates. We're going to add as many flights as are required to make sure that we keep our gate count the same in Chicago.
As we get into 2026, there's another wave of growth coming from that competitor. Mostly, that's going to wind up exactly the same as it did last year, with one difference. In 2025, American had a gate. That means we watched it. We could have responded. We chose not to. They're going to win three gates back at our expense when the analysis comes out later this year. We knew that was going to happen. We figured we'd just let it settle into a new normal, and that would all be fine. But in 2026, we're drawing a line in the sand. We are not going to allow them to win a single gate at our expense in 2026. We're not trying to win gates. We're going to add as many flights as are required to make sure that we keep our gate count the same in Chicago.
We're drawing a Line in the Sand. We are not going to allow them to win a single gate at our expense in 2026. We're not trying to win Gates, we're going to add as many flights as are required. Uh, to make sure that we, uh, keep our gate count the same and Chicago. Uh, look, we're just going to stay focused. We've had the right strategy, uh, in, in at the whole network for a decade. We're going to keep doing it. It's a winning strategy, it's working. Uh, we're going to keep doing that, um, in Chicago for what it's worth. Um, I think that we will likely grow our earnings. It certainly will make at least the same 500 million, uh I believe. Um, and likely will still be able to grow our earnings in Chicago for the same reasons. It worked last year. Um, America and we're pretty good at estimating, this, it's likely to push to about a billion dollars in losses, um, in Chicago. Um, but we're going to just stay focused on the strategy that's worked for the last decade. Our team is doing a great job, taking care of customers. Um,
it's working for us.
Great, great. Thanks for that long, answer or comprehensive. Answer Scott.
Your next question comes from the line of John Goten with the city group. A lot is open.
Scott Kirby: Look, we're just going to stay focused. We've had the right strategy at the whole network for a decade. We're going to keep doing it. It's a winning strategy. It's working. We're going to keep doing that in Chicago. For what it's worth, I think that we will likely grow our earnings. It certainly will make at least the same $500 million, I believe, and likely will still be able to grow our earnings in Chicago for the same reasons it worked last year. American, and we're pretty good at estimating this, is likely to push to about $1 billion in losses in Chicago. But we're going to just stay focused on the strategy that's worked for the last decade. Our team is doing a great job taking care of customers, and it's working for us.
Look, we're just going to stay focused. We've had the right strategy at the whole network for a decade. We're going to keep doing it. It's a winning strategy. It's working. We're going to keep doing that in Chicago. For what it's worth, I think that we will likely grow our earnings. It certainly will make at least the same $500 million, I believe, and likely will still be able to grow our earnings in Chicago for the same reasons it worked last year. American, and we're pretty good at estimating this, is likely to push to about $1 billion in losses in Chicago. But we're going to just stay focused on the strategy that's worked for the last decade. Our team is doing a great job taking care of customers, and it's working for us.
Brett Hart: Great. Great. Thanks for that long answer or comprehensive answer, Scott.
Michael Linenberg: Great. Great. Thanks for that long answer or comprehensive answer, Scott.
the structure of the industry is um is ultimately going to be uh low-cost carriers will
Shrink down to the niche that works for low-cost carriers, that is big.
Operator: Your next question comes from the line of John Godyn with Citigroup. The line is open.
Operator: Your next question comes from the line of John Godyn with Citigroup. The line is open.
Brett Hart: Hey, guys. Thanks for taking my question. Scott, I was hoping you could revisit your thoughts on the shape of industry structure from here. We've seen M&A announced among some of the smaller carriers. There seems to be an expectation of more. I'm curious what you think equilibrium in the industry looks like. And second, obviously, when I think about your history, America West, US Air, US Air, American Airlines, you're no stranger to be a leader in M&A. Is there any scenario where United gets involved in M&A, considering we have what seems to be an accommodative DOJ, which isn't always the case? Thanks.
[Managing Director] (Citi): Hey, guys. Thanks for taking my question. Scott, I was hoping you could revisit your thoughts on the shape of industry structure from here. We've seen M&A announced among some of the smaller carriers. There seems to be an expectation of more. I'm curious what you think equilibrium in the industry looks like. And second, obviously, when I think about your history, America West, US Air, US Air, American Airlines, you're no stranger to be a leader in M&A. Is there any scenario where United gets involved in M&A, considering we have what seems to be an accommodative DOJ, which isn't always the case? Thanks.
Future markets. Um, and I don't know if they're going to liquidate if they're going to merge, you know, if they're just going to all shrink for sure. But they're going to shrink down to the niche that works, and that'll be good for them. I think they can have solid margins. Um, but it's a much smaller Niche than where they are today. Um, I think there's going to be 2 Brownville Airlines um, that for that's already the case. Um, you know, I gave you the numbers in Chicago. Um, that game is over. Um, you know, I realized that not everyone knew the game was on the game is over. Um,
Scott Kirby: Well, I'm not good at resisting the bait, but I'm going to resist the M&A bait today. Bob Rivkin is nodding appreciatively at me, and I'll talk about that. But I think the structure of the industry is ultimately going to be low-cost carriers will shrink down to the niche that works for low-cost carriers. That is big major markets. And I don't know if they're going to liquidate, if they're going to merge, if they're just going to all shrink for sure, but they're going to shrink down to the niche that works. And that'll be good for them. I think they can have solid margins, but it's a much smaller niche than where they are today. I think there's going to be two brand loyal airlines. That's already the case. I gave you the numbers in Chicago. That game is over.
Scott Kirby: Well, I'm not good at resisting the bait, but I'm going to resist the M&A bait today. Bob Rivkin is nodding appreciatively at me, and I'll talk about that. But I think the structure of the industry is ultimately going to be low-cost carriers will shrink down to the niche that works for low-cost carriers. That is big major markets. And I don't know if they're going to liquidate, if they're going to merge, if they're just going to all shrink for sure, but they're going to shrink down to the niche that works. And that'll be good for them. I think they can have solid margins, but it's a much smaller niche than where they are today. I think there's going to be two brand loyal airlines. That's already the case. I gave you the numbers in Chicago. That game is over.
And when we have that big of a lead, uh, with customers, like you just don't win it back because you'd have to have technology product services, that Were Somehow better than United and somehow better than Delta to even start, um, and your decade behind, um, and then I think the rest of it will be sort of, you know, finding places, um, where you know, if you can be big and other cities, you know, non hubs of delta or United and, um, and you can have a network that works and you go a little more commoditized. But, you know, you can help on that Network that works. And so, you know, I think that's what the structure. Um, and it's an open question about whether consolidation helps us get to that structure, but that's where the structure is going to end with consolidation or without
All right. Thanks I won't I won't press it. Appreciate the answer.
Your next question comes from the line of Scott group with wolf research, your line is open.
Scott Kirby: I realized that not everyone knew the game was on. The game is over. And when we have that big of a lead with customers, you just don't win it back because you'd have to have technology, products, services that were somehow better than United and somehow better than Delta to even start, and you're a decade behind. And then I think the rest of it will be sort of finding places where you can be big in other cities, non-hubs of Delta or United, and you can have a network that works, and it's a little more commoditized, but you can have a network that works. And so I think that's what the structure is. And it's an open question about whether consolidation helps us get to that structure. But that's where the structure is going to end with consolidation or without.
I realized that not everyone knew the game was on. The game is over. And when we have that big of a lead with customers, you just don't win it back because you'd have to have technology, products, services that were somehow better than United and somehow better than Delta to even start, and you're a decade behind. And then I think the rest of it will be sort of finding places where you can be big in other cities, non-hubs of Delta or United, and you can have a network that works, and it's a little more commoditized, but you can have a network that works. And so I think that's what the structure is. And it's an open question about whether consolidation helps us get to that structure. But that's where the structure is going to end with consolidation or without.
Speaker #4: was on.
Speaker #4: The game is
Hey thanks. Uh, thanks for squeezing me in. Um, so last quarter, I think you laid out an expectation, we should get at least a point of margin Improvement a year. I think you just got you just said it again. Um, I guess the high end of the guidance range gets you there. The midpoint would be less than a margin less than a full point. So I know just
At the end of the day, like help us, think about price cost this year, given the momentum you've got right now, the comps that come in 2223 like I would have thought this would have been the year where like it's a pretty clear like for the margin like is it just the conservatism? Maybe you said a couple times or are there other things? We should be cognizant of? I don't know. Labor with regards to Chicago, I don't know. Um, just help us understand like if this is the year, we should be doing the full point of margin.
Brett Hart: All right. Thanks. I won't press it. Appreciate the answer.
[Managing Director] (Citi): All right. Thanks. I won't press it. Appreciate the answer.
Operator: Your next question comes from the line of Scott Group with Wolfe Research. Your line is open.
Operator: Your next question comes from the line of Scott Group with Wolfe Research. Your line is open.
[Analyst] (Wolfe Research): Hey, thanks. Thanks for squeezing me in. So last quarter, I think you laid out an expectation. We should get at least a point of margin improvement a year. I think you just said it again. I guess the high end of the guidance range gets you there. The midpoint would be less than a full point. So I don't know, just at the end of the day, help us think about price costs this year, given the momentum you've got right now, the comps that come in Q2, Q3. I would have thought this would have been the year where it's a pretty clear point of margin. Is it just the conservatism that maybe you said a couple of times, or are there other things we should be cognizant of? I don't know, labor with regard to Chicago. I don't know.
Scott Group: Hey, thanks. Thanks for squeezing me in. So last quarter, I think you laid out an expectation. We should get at least a point of margin improvement a year. I think you just said it again. I guess the high end of the guidance range gets you there. The midpoint would be less than a full point. So I don't know, just at the end of the day, help us think about price costs this year, given the momentum you've got right now, the comps that come in Q2, Q3. I would have thought this would have been the year where it's a pretty clear point of margin. Is it just the conservatism that maybe you said a couple of times, or are there other things we should be cognizant of? I don't know, labor with regard to Chicago. I don't know.
Scott, I love that. You did the math and trust me, we've done the math, too. Um, this industry got hit by multiple asteroids last year. We want to make sure that we deliver on our financial commitments. Um, we've given you very clear um targets for the longer term and we're going to deliver on those uh targets the timing of which there's some uh, you know there's some uncertainty around. Um but uh the the full year guys.
Was very deliberate. Uh, we're telling you that if, um, you know, current booking Trends, stay on this path, there's upside. Um, and uh, you should you should you should think about that as you make your own, uh, estimates?
Thank you guys.
Speaker #9: Is it just
Your next question comes from the line of Chris Weatherbee with Wells. Fargo, your line is open.
Speaker #9: No, just help us understand the point. It can be big in other cities,
[Analyst] (Wolfe Research): Just help us understand if this is the year we should be doing the full point of margin? Scott, I love that you did the math. And trust me, we've done the math too. This industry got hit by multiple asteroids last year. We want to make sure that we deliver on our financial commitments. We've given you very clear targets for the longer term, and we're going to deliver on those targets, the timing of which there's some uncertainty around. But the full-year guide was very deliberate. We're telling you that if current booking trends stay on this path, there's upside. And you should think about that as you make your own estimates. Thank you, guys.
Just help us understand if this is the year we should be doing the full point of margin?
Michael Leskinen: Scott, I love that you did the math. And trust me, we've done the math too. This industry got hit by multiple asteroids last year. We want to make sure that we deliver on our financial commitments. We've given you very clear targets for the longer term, and we're going to deliver on those targets, the timing of which there's some uncertainty around. But the full-year guide was very deliberate. We're telling you that if current booking trends stay on this path, there's upside. And you should think about that as you make your own estimates.
Yeah. Hey thanks. Good morning, guys. Um, maybe might just just want to follow up on that question. If you think about unit costs as we go through 26, obviously there's labor dynamics that we have to factor in. We exclude that take a look at 2025, how good of a benchmark or sort of range that for us to use as we think about the sort of excel labor dynamics of unit cost for 2026 and they may be zooming out a little bit. Sounds like they're still sort of have lots of opportunity in terms of managing cost efficiency as we move forward. So how big a story is this Beyond 26
Speaker #4: If trends stay on this path, there's
Scott Group: Thank you, guys.
Operator: Your next question comes from the line of Chris Weatherby with Wells Fargo. Your line is open.
Operator: Your next question comes from the line of Chris Weatherbee with Wells Fargo. Your line is open.
Yeah, thanks Chris for the question. And um look, we're not going to give a pzm guidance, we're not going to give them guidance. But um, we've been pretty clear about uh, this is a new culture at United around cost management and discipline and driving efficiency. And um, let me remind you, we really have not benefited from Gauge. Yet that gauge benefit is still on the come. So, um, uh, 25 was a great year. We're going to work really hard to make 26. Uh, an equally great year from, uh, Chasm standpoint. Um, and, uh, keep in mind some of the Tailwind, uh, we haven't even. We haven't really started the
even benefit from
appreciate it. Thank you.
Brett Hart: Hey, hey. Thanks. Good morning, guys. Maybe Mike, just following up on that question. As you think about unit costs as you go through 2026, obviously, there's labor dynamics that we have to factor in. We exclude that. Take a look at 2025. How good of a benchmark sort of range is that for us to use as we think about sort of ex-labor dynamics of unit costs for 2026? And then maybe zooming out a little bit. It sounds like you still sort of have lots of opportunity in terms of managing cost efficiency as we move forward. So how big a story is this beyond 2026?
[Senior Analyst] (Wells Fargo): Hey, hey. Thanks. Good morning, guys. Maybe Mike, just following up on that question. As you think about unit costs as you go through 2026, obviously, there's labor dynamics that we have to factor in. We exclude that. Take a look at 2025. How good of a benchmark sort of range is that for us to use as we think about sort of ex-labor dynamics of unit costs for 2026? And then maybe zooming out a little bit. It sounds like you still sort of have lots of opportunity in terms of managing cost efficiency as we move forward. So how big a story is this beyond 2026?
Your next question comes from the line of a tulle mesh woori.
With UBS, your line is open.
1 can be.
[Analyst] (Wolfe Research): Yeah. Thanks, Chris, for the question. And look, we're not going to give PRASM guidance. We're not going to give CASM guidance. But we've been pretty clear about this is a new culture at United around cost management, discipline, and driving efficiency. And let me remind you, we really have not benefited from gauge yet. That gauge benefit is still on the come. So 2025 was a great year. We're going to work really hard to make 2026 an equally great year from a CASM standpoint. And keep in mind some of the tailwinds we haven't really started to even benefit from.
Michael Leskinen: Yeah. Thanks, Chris, for the question. And look, we're not going to give PRASM guidance. We're not going to give CASM guidance. But we've been pretty clear about this is a new culture at United around cost management, discipline, and driving efficiency. And let me remind you, we really have not benefited from gauge yet. That gauge benefit is still on the come. So 2025 was a great year. We're going to work really hard to make 2026 an equally great year from a CASM standpoint. And keep in mind some of the tailwinds we haven't really started to even benefit from.
Brett Hart: Appreciate it. Thank you.
[Senior Analyst] (Wells Fargo): Appreciate it. Thank you.
Operator: Your next question comes from the line of Atul Maheshwari with UBS. Your line is open.
Operator: Your next question comes from the line of Atul Maheshwari with UBS. Your line is open.
I'll take that. Look, we're, we're looking forward to it. I'm sure some of us will send a few games. Um, I think the interesting thing we see is it creates, uh, with would be normally counter, surgical, traffic flows. So it creates inbound, uh, into the US demand, uh, in June, uh, which is normally an outbound time period. So, uh, quite frankly, yeah, I think that we do expect some upside from that, given the broader macro Trends. I'm not going to judge exactly how much that is, but we do think uh, you know, this particular sporting event will be a positive for United. There are other large sporting events that are not uh, because they drive just Leisure traffic, uh, and business traffic evaporates in those situations. This is not 1 of the situations. So we do expect some, uh, level of upside, but I, I want to caution you. It's, it's still given the size of the United, uh, it it, I'm not sure it's all that meaningful, but it is possible.
Michael Leskinen: Good morning. Thanks a lot for taking my question. First, just quickly, do you think there can be any meaningful tailwind from the soccer World Cup this year? And if so, is there anything that's assumed in the guide and any way to dimensionalize how large that tailwind can be?
[Analyst] (UBS): Good morning. Thanks a lot for taking my question. First, just quickly, do you think there can be any meaningful tailwind from the soccer World Cup this year? And if so, is there anything that's assumed in the guide and any way to dimensionalize how large that tailwind can be?
Speaker #8: think there can be any meaningful tailwind from
[Analyst] (Wolfe Research): I'll take that. Look, we're looking forward to it. I'm sure some of us will attend a few games. I think the interesting thing we see is it creates what would be normally counter-cyclical traffic flows. So it creates inbound into the US demand in June, which is normally an outbound time period. So quite frankly, yeah, I think that we do expect some upside from that. Given the broader macro trends, I'm not going to judge exactly how much that is, but we do think this particular sporting event will be a positive for United. There are other large sporting events that are not because they drive just leisure traffic, and business traffic evaporates in those situations. This is not one of the situations. So we do expect some level of upside.
Michael Leskinen: I'll take that. Look, we're looking forward to it. I'm sure some of us will attend a few games. I think the interesting thing we see is it creates what would be normally counter-cyclical traffic flows. So it creates inbound into the US demand in June, which is normally an outbound time period. So quite frankly, yeah, I think that we do expect some upside from that. Given the broader macro trends, I'm not going to judge exactly how much that is, but we do think this particular sporting event will be a positive for United. There are other large sporting events that are not because they drive just leisure traffic, and business traffic evaporates in those situations. This is not one of the situations. So we do expect some level of upside.
Speaker #2: forward to it.
Got it. That's helpful. And then, uh, second question, you know, uh, 1 point of pushback that we get from longer term investors, who wanted to fly Capital to repair lines and to United is that how can industry capacity, discipline, persist as going, an Airbus ramp up deliveries from here. Like headline numbers for last year is, is still pretty positive with respect to capacity growth.
So how can that persist? Like what can you say that they've come forward to? Those investors that capacity discipline can in fact persist and strap up deliveries, thank you.
Speaker #2: expect some upside from that. Given the
Uh first we never say those words. Um and I'm not even going to repeat them um because that's not how we think and we
[Analyst] (Wolfe Research): I want to caution you, given the size of United, I'm not sure it's all that meaningful, but it is positive.
I want to caution you, given the size of United, I'm not sure it's all that meaningful, but it is positive.
Michael Leskinen: Got it. That's helpful. Then second question, one point of pushback that we get from longer-term investors who want to deploy capital to airlines and to United is that how can industry capacity discipline persist as Boeing and Airbus ramp up deliveries from here? Headline numbers for last year are still pretty positive with respect to capacity growth. So how can that persist? What can you say to give comfort to those investors that capacity discipline can, in fact, persist? AM's ramp up deliveries. Thank you.
[Analyst] (UBS): Got it. That's helpful. Then second question, one point of pushback that we get from longer-term investors who want to deploy capital to airlines and to United is that how can industry capacity discipline persist as Boeing and Airbus ramp up deliveries from here? Headline numbers for last year are still pretty positive with respect to capacity growth. So how can that persist? What can you say to give comfort to those investors that capacity discipline can, in fact, persist? AM's ramp up deliveries. Thank you.
we don't ever say those words. Um, but what I, I think the limit on capacity is not about aircraft. It is engines. Um, it is already engines. There's about 800 aircraft around the globe that are grounded, um, with engines, we even have some bought tons of spare engines in advance. Um, we even have some that are going to be grounded this year uh for engines. Uh the engine manufacturers are not going to catch up to the combination of the need for um mro replacement engines and new aircraft deliveries in my view um until sometime next decade. So engines, are the constraints
got it. That's very helpful and good luck with the rest of the year.
We will now switch to the media portion of the call.
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Your first question comes from the line of Leslie, Josephs with CNBC, your line is open.
Hi, good morning everybody.
Um, just wondering can you?
Try what you meant about the Caribbean. This is the airspace closure in the beginning of the year, that's impacting bookings. Now in q1, um, and you said that it was um, measurable, could you uh provide some more detail on that and how much that might cost? And then second uh, your competitor in Atlanta was hinting at uh, some segmentation at the front of the plane just wondering. We're United might be on that and is that, uh, you know, could we see a strip down uh business class, or first class products? Maybe no seat assignment or something along those lines. Thanks.
Hi Leslie. It's Andrew, uh, look on on the Caribbean. We're, we're pretty big Airline and the Caribbean. Um, and we're small airlines in the Caribbean, uh, I'm just pointing out that. Um, there there's been a little bit of a book away from the Caribbean. I don't think it's measurable, uh, in the grand scheme of things when it comes to United Airlines to be blunt. Uh, but demand has been impacted by the situation in Venezuela to some extent. Uh, we expect that to dissipate over time. Um, uh, and in fact, the last few days have been better than the first few weeks of the year. So uh, you know, I think we're in good shape on that front. Um,
Uh, and look, uh, you know, on on, on cabin segmentation, I, you know, I'll add that that's been very good for the United Airlines over the years as we invested in more premium products and uh, larger array of of products out there. So uh, we're going to continue to do that. Um, the only, you know, more reasonable hint, I'll give you is that we have a large redesign of united.com coming as we seek to do different things and how we sell products. So we'll leave it to that and we'll talk to you, uh, sometime in the first quarter or second quarter about our overall strategies on merchandising.
Thanks.
Your next question comes from John flitz with trains. Your line is open.
Um, Drawing the Line Drawing the Line in the Sand. Does that mean you're going to add flights?
It does.
Can you give me a little color on on?
On what scale you might be considering adding flights here.
Uh, they will be the color will be, they will it be in the black while America is in the red?
all right, uh any any idea how much I guess is, what I'm asking know in terms of
Okay, I think we're I think we're gonna have a schedule load next week. It'll
give you the answer.
That concludes our question and answer session. I will now turn the call back over to Christina Edwards for closing remarks.
Thanks Colby and thank you all for joining us. As we celebrate our 100 years here at United Airlines contact, investor media relations. If you have any further questions. Bye.
thank you, ladies and gentlemen, this concludes today's conference, you may now disconnect