What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of United Airlines Holdings (UAL) revenue becomes net income?

For TTM through Q1 2026, United Airlines Holdings turned $60.47B of revenue into $3.67B of net income — a net margin of 6.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are United Airlines Holdings (UAL) gross, operating, and net margins?

For TTM through Q1 2026, United Airlines Holdings reported a gross margin of 64.2%, an operating margin of 8.4%, and a net margin of 6.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does United Airlines Holdings (UAL) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

United Airlines Holdings (UAL) Income Statement Waterfall

Revenue

$60.47B

Gross Margin

+64.2%

Operating Margin

+8.4%

Net Margin

+6.1%

Income statement waterfall for United Airlines Holdings (UAL) — TTM through Q1 2026

Net income: $3.67B

Margin breakdown for United Airlines Holdings (UAL) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$60.47B	$60.47B
Cost of Revenue	−$21.62B	$38.85B
Gross Profit	$38.85B	$38.85B
Operating Expenses	−$33.74B	$5.10B
Operating Income	$5.10B	$5.10B
Other Income / Expense	−$405.00M	$4.70B
Pre-tax Income	$4.70B	$4.70B
Income Tax	−$1.03B	$3.66B
Net Income	$3.67B	$3.67B

Revenue$60.47B
Cost of Revenue−$21.62B
Gross Profit$38.85B
Operating Expenses−$33.74B
Operating Income$5.10B
Other Income / Expense−$405.00M
Pre-tax Income$4.70B
Income Tax−$1.03B
Net Income$3.67B

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Income statement waterfall for United Airlines Holdings (UAL) — TTM through Q1 2026

Margin breakdown for United Airlines Holdings (UAL) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of United Airlines Holdings (UAL) revenue becomes net income?

+What are United Airlines Holdings (UAL) gross, operating, and net margins?

+Why does United Airlines Holdings (UAL) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

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