United Airlines Q2 Earnings: Revenue Down, Guidance Issued for 2025

United Airlines reported Q2 earnings of $3.87 per share, beating expectations, but revenue of $15.24 billion fell short of forecasts. The carrier now expects earnings of $9 to $11 per share for the year, with Q3 earnings expected to be between $2.25 and $2.75 per share. Despite the mixed results, United's CEO expressed confidence in a strong finish to the year, citing improving travel demand.

United Airlines (UAL) reported its second-quarter (Q2) earnings per share (EPS) of $3.87, surpassing analyst expectations of $3.25 to $4.25. The company also announced its full-year adjusted diluted EPS guidance of $9.00 to $11.00, reflecting a positive outlook for the remainder of 2025. However, revenue of $15.2 billion fell short of Wall Street forecasts, with total operating revenue up 1.7% compared to the year-ago period [1].

Despite the mixed results, United's CEO, Scott Kirby, expressed confidence in a strong finish to the year. He attributed the positive shift in demand beginning in early July to less geopolitical and macroeconomic uncertainty. The company expects another inflection in industry supply in mid-August, similar to schedule changes in 2024 [1].

United's diverse sources of revenue contributed to its Q2 results. Premium cabin revenue rose 5.6% year-over-year, while cargo revenue increased 3.8% and loyalty revenue surged 8.7%. The airline also reported a sequential 6 point acceleration in demand and a double-digit acceleration in business demand versus the second quarter [1].

Operational performance continued to be a highlight for United. The airline achieved its best post-pandemic scores for consolidated on-time departures and seat cancellation rate in the second quarter. United's Newark, Los Angeles, and San Francisco hubs all achieved their best on-time departure for a second quarter since the pandemic [1].

Looking ahead, United expects Q3 earnings per share to be between $2.25 and $2.75. The company remains focused on strengthening its balance sheet and growing margins. As part of its broader strategy, United repaid the remaining debt from a July 2020 transaction, leaving its MileagePlus loyalty program unencumbered [1].

References:
[1] https://www.prnewswire.com/news-releases/united-airlines-reports-second-quarter-profit-sees-third-quarter-positive-inflection-in-both-supply-and-demand-302507171.html