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

United Airlines Holdings (UAL) reported its fiscal 2025 Q2 earnings on Jul 16th, 2025. The airline's performance missed expectations, with net income declining significantly. Adjusted EPS also fell short of analyst projections, reflecting challenges in the quarter. United Airlines adjusted its full-year EPS guidance to a range of $9.00 to $11.00, showing cautious optimism for the remainder of the year. The company noted a positive demand shift beginning in July, with an expected supply inflection in mid-August.

Revenue
United Airlines Holdings achieved a modest revenue growth of 1.2% in 2025 Q2, reaching $14.27 billion, compared to $14.09 billion in 2024 Q2. Passenger revenue contributed significantly, totaling $13.84 billion, while cargo revenue added $430 million. Additionally, other operating revenue amounted to $970 million, leading to a total operating revenue of $15.24 billion.

Earnings/Net Income
United Airlines Holdings experienced a decline in EPS, which fell by 26.0% to $2.98 in 2025 Q2 from $4.02 in 2024 Q2. The company's net income also decreased to $973 million, down 26.5% from $1.32 billion reported in 2024 Q2. The EPS decline indicates challenges faced by the company during the quarter.

Price Action
The stock price of United Airlines Holdings has edged up 0.80% during the latest trading day, has jumped 10.34% during the most recent full trading week, and has jumped 14.26% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing United Airlines Holdings (UAL) shares 30 days post-earnings release and maintaining the position for an additional 30 days yielded moderate returns, yet it underperformed the benchmark. The strategy's compound annual growth rate stood at 12.55%, lagging behind the benchmark by 4.49 percentage points. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.37, the strategy presented a low-risk profile. However, the volatility rate of 34.22% highlighted considerable fluctuations throughout the holding period. This suggests that while the approach maintained notable stability, the returns were not as robust compared to the market standard, demonstrating the challenges faced in achieving consistent gains.

CEO Commentary
"United's second-quarter performance was more proof that the United Next strategy is working," said Scott Kirby, CEO of United Airlines. He expressed pride in the team's ability to navigate a volatile macroeconomic environment while achieving growth in earnings and pre-tax margin. Kirby noted a positive shift in demand beginning in early July and anticipated another inflection in industry supply in mid-August. He emphasized the restoration of Newark's operational leadership and highlighted the repayment of high-cost debt, stating the company remains focused on strengthening its balance sheet and growing margins.

Guidance
United Airlines expects less geopolitical and macroeconomic uncertainty in the second half of 2025, with a guidance range for full-year adjusted diluted earnings per share updated to $9.00 to $11.00. The airline has observed a 6-point acceleration in booking demand since early July and anticipates a similar supply inflection beginning in mid-August. The company is optimistic about a strong finish to the year, reflecting confidence in its brand-loyal and revenue-diverse business model.

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.