Delta CEO Bastian Predicts Most US Airlines Will Lose Money in 2025

Delta Air Lines CEO Ed Bastian expects most US airlines to lose money in 2025, with Delta and United Airlines Holdings Inc. making the majority of profits due to expensive premium seats and a resurgence in business travel. Bastian noted that lower-income consumers are struggling to afford travel, while the upper end of the economy is spending on experiences. This shift in demand is a departure from the decline in demand earlier in the year due to the Trump administration's tariff wars.

United Airlines Holdings Inc. (UAL) reported strong earnings for the second quarter, with an earnings per share (EPS) of $3.87, surpassing analysts' expectations of $3.81. The company has set its fiscal year 2025 EPS guidance at $9.00 to $11.00 United Airlines Holdings Inc $UAL Shares Purchased by Generate Investment Management Ltd^[1].

Institutional investors and hedge funds have shown increased interest in United Airlines. Generate Investment Management Ltd. boosted its stake by 164.9%, owning 413,307 shares worth approximately $32.91 million, making it the firm's 16th largest holding United Airlines Holdings Inc $UAL Shares Purchased by Generate Investment Management Ltd^[1]. Other notable investors include Wedbush Securities Inc., Foster Group Inc., Principal Securities Inc., Creative Financial Designs Inc., and Kendall Capital Management, which increased their holdings in the first and second quarters United Airlines Holdings Inc $UAL Shares Purchased by Generate Investment Management Ltd^[1].

United Airlines' strong performance is attributed to a resurgence in business travel and premium seating, according to Delta Air Lines CEO Ed Bastian. Bastian expects most US airlines to lose money in 2025, with Delta and United Airlines Holdings Inc. making the majority of profits .

Analysts have responded positively to United Airlines' performance, with several brokerages raising their price targets and ratings. Bank of America, Cowen, Evercore ISI, Barclays, and Susquehanna have all upgraded their ratings on the stock, with targets ranging from $90.00 to $109.00 United Airlines Holdings Inc $UAL Shares Purchased by Generate Investment Management Ltd^[1].

United Airlines' stock has seen increased insider selling, with executive vice presidents Kate Gebo and Torbjorn J. Enqvist selling shares in recent transactions United Airlines Holdings Inc $UAL Shares Purchased by Generate Investment Management Ltd^[1]. Despite this, institutional investors and hedge funds continue to increase their stakes in the company.