United Airlines Q2 2025 Earnings Call Highlights: Record Revenue, Strong Demand and Operational Performance, but Challenges Remain.

United Airlines reported record Q2 revenue of $15.2 billion, up 1.7%, with strong operational performance and reduced debt. However, consolidated TRASM was down 4%, and demand was weaker than expected due to high uncertainty. The company anticipates a temporary negative impact on Q3 revenue due to Newark Airport issues. United expects full-year EPS between $9 and $11 and to generate over $2 billion in free cash flow.

United Airlines (UAL) reported its second-quarter (Q2) financial results today, with revenue reaching $15.2 billion, up 1.7% year-over-year, but falling short of Wall Street expectations. The company's adjusted earnings per share (EPS) of $3.87 exceeded estimates by 6 cents and matched the company's guidance. United also updated its full-year EPS guidance to a range of $9.00 to $11.00 per share, slightly above the Street's consensus estimate of $10.16 [1].

CEO Scott Kirby attributed the "positive shift" in demand beginning in early July to less geopolitical and macroeconomic uncertainty. However, the company expects a temporary negative impact on Q3 revenue due to operational snags at Newark airport, which could result in a 0.9 percentage point hit to earnings [2].

United's Q2 operational performance was robust, with consolidated on-time departures and seat cancellations reaching their best post-pandemic scores for a second quarter. The company's Newark operation regained its leading position in on-time performance among New York City-area airports in June [3].

Despite the challenges, United expects to generate over $2 billion in free cash flow for the full year and has been proactive in managing its balance sheet. In July, the airline repaid the remaining debt from a July 2020 financing transaction, leaving its MileagePlus loyalty program unencumbered. At the end of the second quarter, United's trailing twelve months net leverage was 2.0x [3].

References:
[1] https://www.investing.com/news/earnings/united-airlines-shares-down-posts-q2-revenue-miss-and-inline-outlook-4138448
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TE0T3:0-united-airlines-down-on-weak-profit-forecast-amid-newark-constraints/
[3] https://www.prnewswire.com/news-releases/united-airlines-reports-second-quarter-profit-sees-third-quarter-positive-inflection-in-both-supply-and-demand-302507171.html