Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. United Airlines Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was CHF479 Mil. United Airlines Holdings's Interest Expense for the
three
months ended in Mar. 2026 was CHF-215 Mil.
United Airlines Holdings's interest coverage for the quarter that ended in Mar. 2026 was 2.23.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for United Airlines Holdings's Interest Coverage or its related term are showing as below:
XSWX:UAL'
s Interest Coverage Range Over the Past 10 Years
Min: 1.48 Med: 5.2 Max: 8.45
Current: 4.48
XSWX:UAL's Interest Coverage is ranked worse than 57.92% of 846
companies
in the Transportation industry
Industry Median: 5.67
vs XSWX:UAL: 4.48
United Airlines Holdings (XSWX:UAL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
United Airlines Holdings Interest Coverage Related Terms
United Airlines Holdings Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:UAL vs LUV, DAL, AAL: Interest Coverage Comparison
For the Airlines subindustry, United Airlines Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Airlines Holdings Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, United Airlines Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where United Airlines Holdings's Interest Coverage falls into.
United Airlines Holdings Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
United Airlines Holdings (XSWX:UAL) has a Interest Coverage of 2.23 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on United Airlines Holdings and its competitors. This is 57% below median its historical median of 5.20. Over the past decade, United Airlines Holdings' Interest Coverage has ranged from 1.48 to 8.45. According to the industry distribution chart, United Airlines Holdings ranks #490 out of 846 companies in the Transportation industry, placing it in the top 57.9%.
Is United Airlines Holdings' Interest Coverage too high?
United Airlines Holdings' current Interest Coverage of 2.23 is 57% below median its 10-year median of 5.20. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 8.45. The Transportation industry median Interest Coverage is 5.67. United Airlines Holdings' value of 2.23 is 60.7% below this industry median. Based on the distribution chart, United Airlines Holdings ranks #490 out of 846 companies in the Transportation industry, which is below the industry midpoint. Overall, United Airlines Holdings has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does United Airlines Holdings' Interest Coverage compare to LUV and DAL?
According to the Transportation industry distribution chart, United Airlines Holdings ranks #490 out of 846 companies for Interest Coverage. This places United Airlines Holdings in the lower half of its industry. The industry median Interest Coverage is 5.67. United Airlines Holdings' value of 2.23 is 60.7% below this benchmark. Historically, United Airlines Holdings' own Interest Coverage has ranged from 1.48 to 8.45 over the past decade. While the company's 10-year median is 5.20 vs. the industry median of 5.67, United Airlines Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Airlines Holdings's current Interest Coverage of 2.23 is 60.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on United Airlines Holdings and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Airlines Holdings's current Interest Coverage is 2.23, which is 57% below median its own 10-year median of 5.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Airlines Holdings stock overvalued right now?
United Airlines Holdings (XSWX:UAL) has a current Interest Coverage of 2.23. The stock's GF Value™ is CHF62.50, compared to a current price of CHF103.96 — trading 66.3% above its estimated fair value. The current Interest Coverage is 2.23, which is 57% below median its 10-year median of 5.20 and 60.7% below the Transportation industry median of 5.67. United Airlines Holdings' overall GF Score™ is 79/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For United Airlines Holdings (XSWX:UAL), the current Interest Coverage is 2.23 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is United Airlines Holdings (XSWX:UAL) Overvalued in 2026?
Based on GuruFocus' analysis, United Airlines Holdings stock appears to be overvalued.
The current stock price of CHF103.96 is trading 66.3% above its estimated GF Value™ of CHF62.50.
Key valuation signals for XSWX:UAL:
Interest Coverage: 2.23 (57% below median its 10-year median of 5.20)
GF Value™: CHF62.50 vs. price of CHF103.96 (66.3% above fair value)
Industry Position: 60.7% below the Transportation median (#490 of 846)
No single metric tells the full story. See the XSWX:UAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chicago-based United Airlines is a major US network carrier with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international and long-haul travel, especially across the Pacific, than its large US peers.
79GF Score
Get the complete analysis for XSWX:UAL
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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