United Airlines demonstrated stronger-than-anticipated earnings for the second quarter of 2025, as the airline’s CEO pointed to an uptick in travel demand following a challenging start to the year. This resurgence has been particularly evident among price-sensitive travelers opting for domestic flights, although the initial demand fell short of industry expectations, leading to a decrease in airfares.
“The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year,” remarked CEO Scott Kirby.
In a competitive landscape, Delta Air Lines recently restored its full-year forecast, albeit lower than its initial estimates. Many airlines, including Delta, are gearing up to reduce capacity after the peak summer season concludes in mid-August.
For the quarter ending June 30, United Airlines reported the following results compared to Wall Street’s projections, as gathered by LSEG:
– Adjusted earnings per share: $3.87 versus $3.81 expected
– Revenue: $15.24 billion against an expectation of $15.35 billion
The airline’s second-quarter revenue rose by 1.7% year-over-year to $15.24 billion, still falling short of analysts’ forecasts. Meanwhile, net income slipped 26% to $973 million, translating to $2.97 per share. Adjusted for one-time items, the revenue amounted to $1.27 billion, or $3.87 per share.
Additionally, unit revenue decreased by 4% during the quarter, primarily due to a 7% decline in domestic passenger revenue per seat mile year-over-year. Although international revenue has shown resilience, United faced a decline in pricing power, with Europe unit revenues down 2.2% from the previous year.
Interestingly, premium revenue increased by 5.6% year-over-year, indicating that customers are willing to invest in enhanced in-flight experiences, while basic-economy class sales also saw a modest rise of 1.7%.
Looking ahead, United forecasts adjusted earnings between $9 and $11 per share for 2025, slightly below the $10 per share anticipated by analysts. In light of economic uncertainties earlier this spring, the company had outlined two potential earnings scenarios: $11.50 to $13.50 per share in a stable market and $7 to $9 per share in a recessionary climate.
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In terms of third-quarter performance, United expects adjusted earnings ranging from $2.25 to $2.75 per share, aligning with analyst predictions. The airline noted that operational challenges at Newark Liberty International Airport, a key hub, adversely affected its second-quarter pretax margin by 1.2 percentage points, with an anticipated impact of 0.9 percentage points in the upcoming quarter. This disruption follows the FAA’s decision in May to limit flights at Newark due to staffing shortages and related issues.
American Airlines and Southwest Airlines are set to announce their earnings next week.
