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Item 1. Financial Statements

2026-07-16 compared with 2026-04-22 · 140 added, 70 removed, 430 unchanged (33% of the section changed)

3 unchanged sentences

(In millions, except per share amounts)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Operating revenue:

20 unchanged sentences

Interest capitalized 59 51 113 98

Unrealized losses on investments, net ( 13 ) ( 21 )

Unrealized gains on investments, net 40 26 26 5

Miscellaneous, net 26 41 50 77

9 unchanged sentences

(In millions)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 805 $ 973 $ 1,504 $ 1,361

8 unchanged sentences

(In millions, except shares)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 10,166 $ 5,942

32 unchanged sentences

authorized 1,000,000,000 shares;

outstanding 324,603,702 and 323,470,682 shares at March 31, 2026 and December 31, 2025, respectively

outstanding 324,583,772 and 323,470,682 shares at June 30, 2026 and December 31, 2025, respectively

Additional capital invested 8,879 8,911

8 unchanged sentences

(In millions)

Three Months Ended March 31,

Six Months Ended June 30,

Operating Activities:

12 unchanged sentences

Other, net ( 93 ) ( 99 )

Net cash used in financing activities ( 976 ) ( 1,457 )

Net cash provided by (used in) financing activities 1,172 ( 2,300 )

Net increase in cash, cash equivalents and restricted cash 4,227 585

19 unchanged sentences

Shares Amount

Balance at March 31, 2026 324.6 $ 4 $ 8,843 $ ( 3,724 ) $ 10,730 $ 23 $ 15,876

Net income — — — — 805 — 805

Other comprehensive loss — — — — — ( 20 ) ( 20 )

Stock-settled share-based compensation — — 38 — — — 38

Stock issued for share-based awards, net of shares withheld for tax — — ( 1 ) 1 — — ( 1 )

Balance at June 30, 2026 324.6 $ 4 $ 8,879 $ ( 3,724 ) $ 11,535 $ 3 $ 16,697

Balance at December 31, 2025 323.5 $ 4 $ 8,911 $ ( 3,773 ) $ 10,092 $ 48 $ 15,282

4 unchanged sentences

Stock issued for share-based awards, net of shares withheld for tax 1.4 — ( 105 ) 77 ( 60 ) — ( 89 )

Balance at June 30, 2026 324.6 $ 4 $ 8,879 $ ( 3,724 ) $ 11,535 $ 3 $ 16,697

Balance at March 31, 2025 327.5 $ 4 $ 8,813 $ ( 3,502 ) $ 7,137 $ 164 $ 12,616

Net income — — — — 973 — 973

Other comprehensive loss — — — — — ( 22 ) ( 22 )

Stock-settled share-based compensation — — 43 — — — 43

Repurchases of common stock ( 3.7 ) — — ( 237 ) — — ( 237 )

Stock issued for share-based awards, net of shares withheld for tax — — ( 1 ) 1 ( 1 ) — ( 1 )

Balance at June 30, 2025 323.8 $ 4 $ 8,855 $ ( 3,737 ) $ 8,110 $ 142 $ 13,373

Balance at December 31, 2024 327.9 $ 4 $ 8,980 $ ( 3,377 ) $ 6,880 $ 188 $ 12,675

5 unchanged sentences

Stock issued for share-based awards, net of shares withheld for tax 1.7 — ( 97 ) 99 ( 96 ) — ( 95 )

Balance at March 31, 2025 327.5 $ 4 $ 8,813 $ ( 3,502 ) $ 7,137 $ 164 $ 12,616

Balance at June 30, 2025 323.8 $ 4 $ 8,855 $ ( 3,737 ) $ 8,110 $ 142 $ 13,373

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

2 unchanged sentences

(In millions)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Operating revenue:

20 unchanged sentences

Interest capitalized 59 51 113 98

Unrealized losses on investments, net ( 13 ) ( 21 )

Unrealized gains on investments, net 40 26 26 5

Miscellaneous, net 26 41 50 77

7 unchanged sentences

(In millions)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income $ 805 $ 974 $ 1,504 $ 1,361

8 unchanged sentences

(In millions, except shares)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 10,166 $ 5,942

31 unchanged sentences

authorized 1,000 shares;

issued and outstanding 1,000 shares at both March 31, 2026 and December 31, 2025

issued and outstanding 1,000 shares at both June 30, 2026 and December 31, 2025

Additional capital invested 832 760

8 unchanged sentences

(In millions)

Three Months Ended March 31,

Six Months Ended June 30,

Operating Activities:

11 unchanged sentences

Other, net ( 3 ) ( 4 )

Net cash used in financing activities ( 860 ) ( 1,014 )

Net cash provided by (used in) financing activities 1,289 ( 1,616 )

Net increase in cash, cash equivalents and restricted cash 4,227 585

17 unchanged sentences

Other Comprehensive Income (Loss) (Receivable from) Payable to Related Parties, Net Total

Balance at March 31, 2026 $ 794 $ 13,541 $ 23 $ 1,489 $ 15,848

Net income — 805 — — 805

Other comprehensive loss — — ( 20 ) — ( 20 )

Stock-settled share-based compensation 38 — — — 38

Other — — — ( 5 ) ( 5 )

Balance at June 30, 2026 $ 832 $ 14,346 $ 3 $ 1,484 $ 16,666

Balance at December 31, 2025 $ 760 $ 12,842 $ 48 $ 1,604 $ 15,254

4 unchanged sentences

Other ( 1 ) — — ( 93 ) ( 95 )

Balance at June 30, 2026 $ 832 $ 14,346 $ 3 $ 1,484 $ 16,666

Balance at March 31, 2025 $ 645 $ 9,875 $ 164 $ 1,909 $ 12,593

Net income — 974 — — 974

Other comprehensive loss — — ( 22 ) — ( 22 )

Stock-settled share-based compensation 43 — — — 43

Impact of UAL share repurchase — — — ( 240 ) ( 240 )

Other — — — ( 1 ) ( 1 )

Balance at June 30, 2025 $ 688 $ 10,848 $ 142 $ 1,667 $ 13,347

Balance at December 31, 2024 $ 617 $ 9,487 $ 188 $ 2,352 $ 12,644

4 unchanged sentences

Other — — — ( 95 ) ( 95 )

Balance at March 31, 2025 $ 645 $ 9,875 $ 164 $ 1,909 $ 12,593

Balance at June 30, 2025 $ 688 $ 10,848 $ 142 $ 1,667 $ 13,347

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

27 unchanged sentences

The table below presents the Company's operating revenue by principal geographic region (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Domestic (U.S.

5 unchanged sentences

Advance ticket sales.

In the three months ended March 31, 2026 and 2025, the Company recognized approximately $ 4.6 billion and $ 4.3 billion, respectively, of passenger revenue for tickets that were included in Advance ticket sales at the beginning of those periods.

In the six months ended June 30, 2026 and 2025, the Company recognized $ 5.9 billion and $ 5.5 billion, respectively, of passenger revenue for tickets that were included in Advance ticket sales at the beginning of those periods.

Ancillary services.

The Company recognized approximately $ 1.2 billion and $ 1.0 billion of ancillary fees within passenger revenue in the three months ended March 31, 2026 and 2025, respectively.

The Company recognized $ 1.4 billion and $ 2.6 billion of ancillary fees within passenger revenue in the three and six months ended June 30, 2026, respectively.

The Company recorded $ 1.2 billion and $ 2.2 billion of ancillary fees within passenger revenue in the three and six months ended June 30, 2025, respectively.

Frequent flyer deferred revenue.

The table below presents a roll forward of Frequent flyer deferred revenue (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Beginning Balance $ 7,934 $ 7,591 $ 7,777 $ 7,441

3 unchanged sentences

Ending Balance $ 7,971 $ 7,665 $ 7,971 $ 7,665

In the three months ended March 31, 2026 and 2025, the Company recognized, in Other operating revenue, $ 870 million and $ 774 million, respectively, related to the marketing, advertising, non-travel miles redeemed (net of related costs) and other travel-related benefits of the mileage revenue associated with our various partner agreements including, but not limited to, our MileagePlus co-brand agreement with JPMorgan Chase Bank, N.A.

In the three and six months ended June 30, 2026, the Company recognized, in Other operating revenue, $ 0.9 billion and $ 1.8 billion, respectively, related to the marketing, advertising, non-travel miles redeemed (net of related costs) and other travel-related benefits of the mileage revenue associated with our various partner agreements including, but not limited to, our MileagePlus co-brand agreement with JPMorgan Chase Bank, N.A.

In the three and six months ended June 30, 2025, the Company recognized, in Other operating revenue, $ 0.8 billion and $ 1.6 billion, respectively, related to those agreements.

The portion related to the MileagePlus miles awarded of the total amounts received from our various partner agreements is deferred and presented in the table above as an increase to Frequent flyer deferred revenue.

1 unchanged sentence

The following table shows the computation of UAL's basic and diluted earnings per share, the latter of which uses the treasury stock method to calculate the dilutive effect of UAL's potential common stock (in millions, except per share amounts):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Earnings available to common stockholders $ 805 $ 973 $ 1,504 $ 1,361

7 unchanged sentences

In 2020 and 2021, the Company issued to the United States Department of the Treasury (the "U.S.

Treasury") warrants (the "Warrants") to purchase 9,928,349 shares of UAL common stock in connection with the Payroll Support Program established under Division A, Title IV, Subtitle B of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the Payroll Support Program Extension established under Division N, Title IV, Subtitle A of the Consolidated Appropriations Act, 2021, the Payroll Support Program 3 established under Title VII, Subtitle C of the American Rescue Plan Act of 2021, and the Airline Loan Program established under Division A, Title IV, Subtitle A of the CARES Act.

Treasury") warrants (the "Warrants") to purchase 9,928,349 shares of UAL common stock in connection with the Payroll Support Program ("PSP") established under Division A, Title IV, Subtitle B of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the Payroll Support Program Extension established under Division N, Title IV, Subtitle A of the Consolidated Appropriations Act, 2021, the Payroll Support Program 3 established under Title VII, Subtitle C of the American Rescue Plan Act of 2021, and the Airline Loan Program established under Division A, Title IV, Subtitle A of the CARES Act.

In 2024, the holder of the Warrants exercised 6,414,635 of the Warrants in a net share settlement for 2,043,906 shares of UAL common stock.

In March 2025, the remaining 3,513,714 Warrants were exercised in a net share settlement for 1,801,430 shares of UAL common stock.

In the three months ended March 31, 2026 and 2025, the Company repurchased, through open market purchases, approximately 0.3 million and 4.0 million shares, respectively, of UAL common stock for a total of approximately $ 27 million and $ 356 million, respectively, as part of its share repurchase program.

As of March 31, 2026, the dollar value of shares that may yet be purchased under the program was approximately $ 755 million.

On October 15, 2024, the Company announced that its Board of Directors authorized a new share repurchase program with no stated expiration, allowing for purchases of up to $ 1.5 billion in the aggregate of outstanding UAL common stock and certain warrants to purchase UAL common stock.

In the six months ended June 30, 2026, the Company repurchased, through open market purchases, 0.3 million shares of UAL common stock for a total of $ 27 million as part of its share repurchase program.

In the three and six months ended June 30, 2025, the Company repurchased, through open market purchases, 3.5 million and 7.6 million shares, respectively, of UAL common stock for a total of $ 0.2 billion and $ 0.6 billion, respectively, as part of its share repurchase program.

The Company did not make any repurchases in the three months ended June 30, 2026.

As of July 9, 2026, the dollar value of shares that may yet be purchased under the share repurchase program was $ 755 million.

NOTE 4 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

1 unchanged sentence

Pension and Other Postretirement Liabilities Investments and Other Deferred Taxes (a) Total

Balance at March 31, 2026 $ 399 $ ( 4 ) $ ( 372 ) $ 23

Changes in value ( 1 ) ( 6 ) 2 ( 6 )

Amounts reclassified to earnings ( 18 ) (b) ( 1 ) 4 ( 15 )

Balance at June 30, 2026 $ 380 $ ( 11 ) $ ( 366 ) $ 3

Balance at December 31, 2025 $ 417 $ 10 $ ( 379 ) $ 48

1 unchanged sentence

Amounts reclassified to earnings ( 36 ) (b) ( 3 ) 9 ( 30 )

Balance at June 30, 2026 $ 380 $ ( 11 ) $ ( 366 ) $ 3

Balance at March 31, 2025 $ 574 $ 3 $ ( 412 ) $ 164

Changes in value 1 1 ( 1 ) 2

Amounts reclassified to earnings ( 31 ) (b) ( 1 ) 7 ( 25 )

Balance at June 30, 2025 $ 544 $ 4 $ ( 406 ) $ 142

Balance at December 31, 2024 $ 607 $ — $ ( 419 ) $ 188

1 unchanged sentence

Amounts reclassified to earnings ( 61 ) (b) ( 2 ) 14 ( 49 )

Balance at March 31, 2025 $ 574 $ 3 $ ( 412 ) $ 164

(a) Includes approximately $ 285 million of deferred income tax expense that will not be recognized in net income until the related pension and postretirement benefit obligations are fully extinguished.

Balance at June 30, 2025 $ 544 $ 4 $ ( 406 ) $ 142

(a) Includes $ 285 million of deferred income tax expense that will not be recognized in net income until the related pension and postretirement benefit obligations are fully extinguished.

We consider all income sources, including other comprehensive income, in determining the amount of tax benefit allocated to results from operations.

3 unchanged sentences

NOTE 5 - INCOME TAXES

The Company's effective tax rates for the three months ended March 31, 2026 and 2025 were 19.7 % and 19.0 %, respectively.

The Company's effective tax rates for the three and six months ended June 30, 2026 were 21.6 % and 20.7 %, respectively.

The Company's effective tax rate for the three and six months ended June 30, 2025 were 22.0 % and 21.2 %, respectively.

The provision for income taxes is based on the estimated annual effective tax rate, which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items.

NOTE 6 - PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The Company's net periodic benefit cost includes the following components for the three months ended March 31 (in millions):

The Company's net periodic benefit cost includes the following components for the three months ended June 30 (in millions):

Pension Benefits Other Postretirement Benefits Affected Line Item

5 unchanged sentences

Expected return on plan assets ( 80 ) ( 68 ) — — Miscellaneous, net

Amortization of unrecognized (gain) loss — ( 2 ) ( 7 ) ( 8 ) Miscellaneous, net

Amortization of unrecognized gain — ( 2 ) ( 11 ) ( 8 ) Miscellaneous, net

Amortization of prior service credit — — ( 7 ) ( 22 ) Miscellaneous, net

Total $ 17 $ 23 $ ( 9 ) $ ( 20 )

The Company's net periodic benefit cost includes the following components for the six months ended June 30 (in millions):

Pension Benefits Other Postretirement Benefits Affected Line Item

in the Statements of

Consolidated Operations

2026 2025 2026 2025

Service cost $ 65 $ 64 $ 3 $ 3 Salaries and related costs

Interest cost 129 121 14 16 Miscellaneous, net

Expected return on plan assets ( 160 ) ( 136 ) ( 1 ) ( 1 ) Miscellaneous, net

Amortization of unrecognized gain ( 1 ) ( 3 ) ( 14 ) ( 15 ) Miscellaneous, net

Amortization of prior service credit — — ( 21 ) ( 43 ) Miscellaneous, net

Total $ 34 $ 46 $ ( 19 ) $ ( 41 )

During the three and six months ended June 30, 2026, the Company contributed $ 9 million to its U.S.

domestic tax-qualified defined benefit pension plans.

NOTE 7 - FAIR VALUE MEASUREMENTS, INVESTMENTS AND NOTES RECEIVABLE

The table below presents the value of financial assets measured at fair value on a recurring basis in the Company's financial statements (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3

13 unchanged sentences

and Eve Holding, Inc.

On February 17, 2026, United, Azul and certain of Azul's subsidiaries entered into an amended and restated investment agreement pursuant to which United agreed to subscribe for $ 100 million of American Depositary Shares ("ADS"), with each ADS initially representing 500,000 common shares, no par value, of Azul (and with each ADS representing 2 common shares, after taking into account a reverse stock split and ADS ratio change approved March 25, 2026).

On February 20, 2026, Azul completed its reorganization process and consequently sold to United approximately 8.7 % of the Azul shares issued and outstanding as of that date.

On February 17, 2026, United, Azul and certain of Azul's subsidiaries entered into an amended and restated investment agreement pursuant to which United agreed to subscribe for $ 100 million of American Depositary Shares ("ADS"), with each ADS initially representing 500,000 common shares, no par value, of Azul (and with each ADS representing two Azul common shares, after taking into account a reverse stock split and ADS ratio change approved March 25, 2026).

On February 20, 2026, Azul completed its reorganization process and consequently sold to United approximately 8.7 % of the Azul common shares issued and outstanding as of that date.

As of June 30, 2026, United holds an 8.6 % equity ownership interest in Azul.

Other fair value information.

The table below presents the carrying amounts and estimated fair values of financial instruments not presented in the table above (in millions).

Carrying amounts include any related discounts, premiums and issuance costs.

March 31, 2026 December 31, 2025

The table below presents the carrying amounts (inclusive of any related discounts, premiums and issuance costs) and estimated fair values of financial instruments not presented in the table above (in millions):

June 30, 2026 December 31, 2025

Carrying Amount Fair Value Carrying Amount Fair Value

7 unchanged sentences

Equity Method Investments.

As of March 31, 2026, United holds investments, accounted for using the equity method, with a combined carrying amount of approximately $ 324 million, including the following:

As of June 30, 2026, United holds investments, accounted for using the equity method, with a combined carrying amount of $ 325 million, including the following:

• Republic Airways Holdings Inc.

2 unchanged sentences

("Republic") and Mesa Airlines, Inc.

In consideration for United's commitment to facilitate transactions related to the merger between Republic and Mesa on November 25, 2025, the Company received an additional 2,744,348 shares on February 3, 2026, or approximately 5.8 % of Republic, for a total ownership interest of approximately 22 % of the issued and outstanding common stock of Republic.

This investment is subject to contractual transfer restrictions until May 2026.

currently operates 66 regional aircraft under capacity purchase agreements ("CPAs") with United that have terms through 2038 and Mesa operates 60 regional aircraft under a CPA with a term through 2036.

In consideration for United's commitment to facilitate transactions related to the merger between Republic and Mesa on November 25, 2025, the Company received an additional 2,744,348 shares on February 3, 2026, or approximately 5.8 % of Republic Airways, for a total ownership interest of approximately 22 % of the issued and outstanding common stock of Republic Airways.

Republic currently operates 66 regional aircraft under capacity purchase agreements ("CPAs") with United that have terms through 2038 and Mesa operates 60 regional aircraft under a CPA with a term through 2036.

• CommuteAir LLC ("CommuteAir").

5 unchanged sentences

Other Investments.

As of March 31, 2026, United has equity investments in a number of companies including a multinational airline holding company, an independent air carrier and others with emerging technologies and sustainable solutions.

As of June 30, 2026, United has equity investments in a number of companies including a multinational airline holding company, an independent air carrier and others with emerging technologies and sustainable solutions.

None of these investments have readily determinable fair values.

These investments are recorded at cost less any impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer.

As of March 31, 2026, the carrying amount of these investments was $ 331 million.

As of June 30, 2026, the carrying amount of these investments was $ 338 million.

Notes Receivable.

As of March 31, 2026, the Company has $ 54 million of notes receivable, net of allowance for credit losses, the majority of which is from certain of its regional carriers.

As of June 30, 2026, the Company has $ 54 million of notes receivable, net of allowance for credit losses, the majority of which is from certain of its regional carriers.

The current portions of the notes receivable are recorded in Receivables, net and the long-term portions are recorded in Investments in affiliates and other, net on the Company's consolidated balance sheets.

NOTE 8 - DEBT

As of March 31, 2026, the Company had $ 3.0 billion undrawn and available under its revolving credit facility.

The table below presents the Company's contractual principal payments (not including $ 131 million of unamortized debt discount, premiums and debt issuance costs) as of March 31, 2026 under then-outstanding long-term debt agreements (in millions):

Last Nine Months of 2026 2027 2028 2029 2030 After 2030 Total

As of June 30, 2026, the Company had $ 3.0 billion undrawn and available under its revolving credit facility.

The table below presents the Company's contractual principal payments (not including $ 157 million of unamortized debt discount, premiums and debt issuance costs) as of June 30, 2026 under then-outstanding long-term debt agreements (in millions):

Last Six Months of 2026 2027 2028 2029 2030 After 2030 Total

Contractual principal payments $ 928 $ 2,049 $ 2,017 $ 4,752 $ 2,171 $ 11,165 $ 23,081

Our debt agreements contain customary terms and conditions as well as various affirmative, negative and financial covenants that, among other things, limit the ability of the Company and its subsidiaries, under certain circumstances, to incur additional indebtedness and pay dividends or repurchase stock.

As of March 31, 2026, the Company was in compliance with its covenants under these debt agreements.

As of June 30, 2026, the Company was in compliance with its covenants under these debt agreements.

On February 2, 2026, UAL issued, in a public offering, $ 1,000,000,000 principal amount of its 5.375 % Senior Notes due 2031 (the "2031 Notes"), which are guaranteed by United.

6 unchanged sentences

The 2029 Notes, issued at a price of 100 % of their principal amount, bear interest at a rate of 4.875 % per annum, payable semi-annually on March 1 and September 1 of each year, beginning September 1, 2026 and maturing on March 1, 2029.

UAL, at its option, may redeem the 2029 Notes at any time prior to December 1, 2028,

in whole or in part, at a redemption price equal to the greater of (1) 100 % of the principal amount of the 2029 Notes to be redeemed and (2) a make-whole amount, if any, plus accrued and unpaid interest on the principal amount being redeemed to the redemption date.

UAL, at its option, may redeem the 2029 Notes at any time prior to December 1, 2028, in whole or in part, at a redemption price equal to the greater of (1) 100 % of the principal amount of the 2029 Notes to be redeemed and (2) a make-whole amount, if any, plus accrued and unpaid interest on the principal amount being redeemed to the redemption date.

At any time on or after December 1, 2028, UAL may redeem the 2029 Notes, in whole or in part, at a redemption price equal to 100 % of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest on the principal amount being redeemed to the redemption date.

Additionally, during the six months ended June 30, 2026, United borrowed $ 3.9 billion aggregate principal amount of loans secured by aircraft, $ 3.7 billion of which were in the second quarter.

The loans mature between 2029 and 2038 and bear interest equal to Term SOFR plus an average margin of 1.4 %.

The Company may prepay the loans and terminate the commitments, in whole or in part, at any time subject to certain conditions, including, in some cases, the payment of a contractually specified prepayment premium during the initial years of the term, but at par thereafter.

During the three months ended June 30, 2026, United entered into financing arrangements providing for total borrowing commitments of approximately $ 375 million that the related proceeds had not been received and accordingly, no debt or other financial liabilities were recognized on the consolidated balance sheets as of June 30, 2026.

During the six months ended June 30, 2026, the Company made payments for debt of $ 4.2 billion, including $ 0.5 billion of prepayments on aircraft debt with various original maturity dates between 2026 and 2035 and the two prepayment transactions described below.

On February 24, 2026, United redeemed in full (the "Redemption") all $ 2.0 billion of aggregate principal amount of its outstanding 4.375 % Senior Secured Notes due 2026 (the "Secured Notes"), issued pursuant to an indenture (the "Indenture"), dated as of April 21, 2021, among United, UAL and Wilmington Trust, National Association, as trustee and as collateral trustee.

1 unchanged sentence

The Indenture remains in effect as to United's 4.625 % Senior Secured Notes due 2029.

On June 23, 2026, the Company made a partial prepayment of $ 0.6 billion of the aggregate principal amount of a $ 1.5 billion note issued to the U.S.

Treasury under the Payroll Support Program due 2030.

The Company also has two outstanding unsecured promissory notes issued to the U.S.

Treasury under the Payroll Support Program in the aggregate principal amounts of $ 0.9 billion and $ 0.8 billion due 2031 .

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Regional CPAs.

During the three months ended March 31, 2026, United amended some of its CPAs with certain of its regional carriers to modify the terms for certain aircraft and amend the contractually agreed fees paid to those carriers.

During the six months ended June 30, 2026, United amended some of its CPAs with certain of its regional carriers to modify the terms for certain aircraft and amend the contractually agreed fees paid to those carriers.

Our future commitments under our CPAs are dependent on numerous variables, and are, therefore, difficult to predict.

3 unchanged sentences

United's estimates of its future payments under all of the CPAs do not include the portion of the underlying obligation for any aircraft leased to a regional carrier or deemed to be leased from other regional carriers, or facility rent.

For purposes of calculating these estimates, we have assumed (1) the number of block hours flown is based on our anticipated level of flight activity or at any contractual minimum utilization levels if applicable, whichever is higher, (2) that we will reduce the fleet as rapidly as contractually allowed under each CPA, (3) that aircraft utilization, stage length and load factors will remain constant, (4) that each carrier's operational performance will remain at recent historic levels and (5) an annual projected inflation rate.

For purposes of calculating these estimates, we have assumed (1) the number of block hours flown is based on our anticipated level of flight activity or at any contractual minimum utilization levels

if applicable, whichever is higher, (2) that we will reduce the fleet as rapidly as contractually allowed under each CPA, (3) that aircraft utilization, stage length and load factors will remain constant, (4) that each carrier's operational performance will remain at recent historic levels and (5) an annual projected inflation rate.

These amounts exclude certain variable pass-through costs such as fuel and landing fees, among others.

Based on these assumptions, as of March 31, 2026, our estimated future payments through the end of the terms of our CPAs are presented in the table below (in billions):

Last Nine Months of 2026 2027 2028 2029 2030 After 2030 Total

Based on these assumptions, as of June 30, 2026, our estimated future payments through the end of the terms of our CPAs are presented in the table below (in billions):

Last Six Months of 2026 2027 2028 2029 2030 After 2030 Total

Future commitments under CPAs $ 1.4 $ 3.3 $ 3.0 $ 2.6 $ 2.2 $ 6.5 $ 19.0

1 unchanged sentence

In United's financing transactions that include loans in which United is the borrower, United typically agrees to reimburse lenders for any reduced returns with respect to the loans due to any change in capital requirements and, in the case of loans with respect to which the interest rate is based on the Secured Overnight Financing Rate (SOFR), for certain other increased costs that the lenders incur in carrying these loans as a result of any change in law, subject, in most cases, to obligations of the lenders to take certain limited steps to mitigate the requirement for, or the amount of, such increased costs.

At March 31, 2026, the Company had $ 8.5 billion of floating rate debt with remaining terms of up to approximately 12 years that are subject to these increased cost provisions.

In several financing transactions with remaining terms of up to approximately 12 years and an aggregate balance of $ 5.3 billion, the Company bears the risk of any change in tax laws that would subject loan payments thereunder to withholding taxes, subject to customary exclusions.

As of March 31, 2026, the Company had approximately 115,600 employees, of whom approximately 83 % were represented by various U.S.

At June 30, 2026, the Company had $ 11.2 billion principal amount of floating rate debt with remaining terms of up to approximately 12 years that are subject to these increased cost provisions.

In several financing transactions with remaining terms of up to approximately 12 years and an aggregate principal amount balance of $ 8.6 billion, the Company bears the risk of any change in tax laws that would subject loan payments thereunder to withholding taxes, subject to customary exclusions.

As of June 30, 2026, the Company had approximately 117,500 employees, of whom 83 % were represented by various U.S.

labor organizations.

In March 2026, the Company reached a new Tentative Agreement ("TA") with its employees represented by the Association of Flight Attendants ("AFA") regarding an agreement that became amendable in August 2021.

The new TA includes improvements with respect to scheduling, reserve requirements and other quality of life improvements, as well as pay rate increases during its five-year term.

The new TA also includes a provision for a one-time payment to employees represented by the AFA upon ratification.

In 2025, the Company recorded, in Special charges (credits), $ 561 million of expenses related to this ratification payment.

Given the inherent uncertainty of the bargaining process, the Company will record any additional amounts awarded under the one-time payment when they become both probable and estimable.

Voting to ratify the new TA is expected to close on May 12, 2026.

In May 2026, the Company's flight attendants, represented by the Association of Flight Attendants ("AFA"), ratified a five-year agreement, effective May 31, 2026, with the Company that includes improvements with respect to scheduling, reserve requirements and other quality of life improvements, as well as pay rate increases.

The agreement also includes a provision for a one-time payment upon ratification to be paid no later than September 15, 2026.

In the three and six months ended June 30, 2026, the Company recorded, in Special charges (credits), an additional $ 181 million of expenses related to this ratification payment, which together with previously recognized expenses brings the total liability for this ratification payment to $ 742 million as of June 30, 2026.

NOTE 10 - SPECIAL CHARGES (CREDITS)

Operating and nonoperating special charges (credits) and unrealized losses on investments in the statements of consolidated operations consisted of the following (in millions):

Three Months Ended March 31,

Operating and nonoperating special charges (credits) and unrealized gains on investments in the statements of consolidated operations consisted of the following (in millions):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Labor contract ratification bonuses $ 184 $ 561 $ 184 $ 561

(Gains) losses on sale of assets and other special charges ( 329 ) ( 114 ) ( 718 ) ( 222 )

Total operating special charges (credits) ( 145 ) 447 ( 534 ) 340

Nonoperating unrealized losses on investments, net 13 21

Nonoperating unrealized gains on investments, net ( 40 ) ( 26 ) ( 26 ) ( 5 )

Nonoperating debt extinguishment and modification fees 1 — 5 —

Total nonoperating special charges and unrealized losses on investments, net 18 21

Total operating and nonoperating special charges (credits) and unrealized losses on investments, net ( 372 ) ( 87 )

Income tax expense, net of valuation allowance 62 2

Total operating and nonoperating special charges (credits) and unrealized losses on investments, net of income taxes $ ( 310 ) $ ( 85 )

During the three months ended March 31, 2026 and 2025, the Company recorded $ 389 million and $ 108 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $ 444 million and $ 110 million, respectively, of gains on various aircraft sale-leaseback transactions.

Total nonoperating special charges and unrealized gains on investments, net ( 38 ) ( 26 ) ( 21 ) ( 5 )

Total operating and nonoperating special charges (credits) and unrealized gains on investments, net ( 183 ) 422 ( 555 ) 335

Income tax expense (benefit), net of valuation allowance 27 ( 128 ) 89 ( 127 )

Total operating and nonoperating special charges (credits) and unrealized gains on investments, net of income taxes $ ( 156 ) $ 293 $ ( 466 ) $ 208

During the three and six months ended June 30, 2026, the Company recorded $ 184 million of expense associated with the recently ratified agreements with the Company's flight attendants represented by the AFA, as discussed in Note 9, and the Company's fleet technical instructors, storekeepers, maintenance instructors and security officers represented by the International Association of Machinists and Aerospace Workers.

During the three and six months ended June 30, 2025, the Company recorded a $ 561 million special charge in connection with the then-existing tentative agreement with its flight attendants represented by the AFA.

During the three and six months ended June 30, 2026, the Company recorded $ 329 million and $ 718 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $ 351 million and $ 796 million, respectively, of gains on various aircraft sale-leaseback transactions.

During the three and six months ended June 30, 2025, the Company recorded $ 114 million and $ 222 million, respectively, of net gains on sale of assets and other special charges, which were primarily comprised of $ 151 million and $ 261 million, respectively, of gains on various aircraft sale-leaseback transactions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements