United's Cost Discipline Shines as UBS Boosts Estimates

Thomas Wadewitz at UBS saw United Airlines UAL cautious EPS guide as a green flag for Newark's recovery and rising corporate travel, so he boosted his price target to $114 and tweaked EPS forecasts.

He now pegs Q4 EPS at $2.90 and FY 26 at $14.25, reflecting tight cost discipline. United held unit costs excluding fuel to just 2.2% growth even after front?loading flight attendant signing bonuses.

That efficiency stemmed from strong network operations as capacity climbs five to six percent. United expects unit costs ex fuel to stay near 2.5% in the second half as demand picks up.

All eyes are on next week's results from Delta, American, Southwest and JetBlue. How United balances improving demand with cost control will decide if UBS's bullish outlook holds.