United Airlines Holdings 2025 Q2 Earnings Misses Targets as Net Income Drops 26.5%

United Airlines Holdings (UAL) reported its fiscal 2025 Q2 earnings on Jul 17th, 2025. United Airlines Holdings fell short of market expectations, reporting adjusted earnings per share of $3.87 against the anticipated $3.81, and total revenue of $15.24 billion, missing the forecasted $15.35 billion. The airline adjusted its full-year EPS guidance to a range of $9 to $11, which is below prior projections but in line with analyst expectations. The company remains cautiously optimistic about the second half of the year, anticipating improved demand and reduced uncertainty.

Revenue
United Airlines Holdings reported total operating revenue of $15.24 billion for Q2 2025. Passenger services were the primary contributor, generating $13.84 billion. Cargo operations added $430 million, while other operating revenue reached $970 million. This marks an overall increase from the previous year's Q2 performance, demonstrating steady growth across its business segments.

Earnings/Net Income
United Airlines Holdings's EPS declined 25.4% to $3.00 in 2025 Q2 from $4.02 in 2024 Q2. Meanwhile, the company's net income declined to $973 million in 2025 Q2, down 26.5% from $1.32 billion reported in 2024 Q2. The decline in EPS underscores the challenges faced by United Airlines during the quarter.

Price Action
The stock price of United Airlines Holdings has edged down 0.72% during the latest trading day, has edged down 0.49% during the most recent full trading week, and has surged 23.27% month-to-date.

Post-Earnings Price Action Review
The investment strategy of acquiring United Airlines Holdings shares 30 days post-earnings release and holding them for a further 30 days yielded moderate returns, yet underperformed the benchmark, with a compound annual growth rate of 12.55%, trailing the benchmark by 4.49 percentage points. Despite showing a low-risk profile through a maximum drawdown of 0.00% and a Sharpe ratio of 0.37, the strategy faced considerable fluctuations with a volatility rate of 34.22%. These figures suggest that while stability was maintained, the returns were not as robust compared to market standards, reflecting challenges in achieving consistent gains.

CEO Commentary
J. Scott Kirby, CEO & Director, stated that the second quarter demonstrated the effectiveness of the United Next strategy, highlighting strong operational execution amid macro challenges. He noted that while demand stabilized, it was approximately five points weaker than anticipated earlier in the year due to heightened uncertainty. Kirby expressed optimism regarding a recent positive shift in demand, attributing it to reduced uncertainty in tax and geopolitical situations. He emphasized the importance of revenue diversity and the competitive advantages of United and its brand loyalty, asserting that these factors will continue to yield strong margins and profitability moving forward.

Guidance
United Airlines expects third-quarter earnings per share (EPS) to range between $2.25 and $2.75. For the full year, EPS guidance is set at $9 to $11. The company anticipates continued revenue growth driven by recovering Newark sales, improved overall demand, and a reduction in low-margin airline capacity. Additionally, there is confidence in achieving a positive revenue backdrop as industry capacity decreases and demand strengthens, particularly in the premium segment.

Additional News
United Airlines recently announced a unique collaboration with JetBlue, named 'Blue Sky,' which aims to link their loyalty programs starting in fall 2025. This partnership will allow MileagePlus customers to earn and use miles on JetBlue flights, while TrueBlue members gain access to United's extensive network. Additionally, United has unveiled its new United Polaris lounge at Chicago O'Hare International Airport, which is now 50% larger, featuring collaborations with Crate & Barrel for decor and enhanced amenities. The airline also announced its investment in a power-to-liquid fuels company, Twelve, focusing on sustainable aviation fuel production to reduce lifecycle emissions by up to 90% compared to traditional jet fuel.