Core Insights - Investors with significant capital have adopted a bearish outlook on United Airlines Holdings (NASDAQ:UAL), indicating potential insider knowledge of upcoming events [1] - The sentiment among large traders is predominantly bearish, with 57% taking bearish positions compared to 26% bullish [2] Options Activity - A total of 26 unusual options trades were identified for United Airlines, with 9 puts amounting to $867,954 and 17 calls totaling $2,004,260 [2] - The price range being targeted by these trades spans from $43.0 to $125.0 over the past quarter [3] Volume and Open Interest Trends - An analysis of volume and open interest reveals critical insights into liquidity and interest levels for United Airlines' options, particularly within the strike price range of $43.0 to $125.0 over the last month [4] Largest Options Trades - Notable trades include a bearish call sweep with a total trade price of $841.8K at a strike price of $100.00, and a bullish call trade with a total price of $426.0K at a strike price of $125.00 [9][10] Company Overview - United Airlines is a major US network carrier with a focus on international and long-haul travel, operating a hub-and-spoke system [11] Market Analysis - Analysts have set an average price target of $126.8 for United Airlines, with various firms maintaining positive ratings and targets ranging from $115 to $135 [12][13] Current Trading Status - United Airlines is currently trading at $98.71, reflecting a 0.53% increase, with a volume of 3,913,100 shares [15]

Core Insights - American Airlines is facing significant challenges in the competitive landscape of U.S. airlines, being positioned as a distant third behind Delta and United, which are expected to dominate industry profits in the coming years [2][3][4] Financial Performance - American Airlines is projected to report a per share loss of 27 cents in its upcoming earnings release, contrasting sharply with Delta and United's profitability [3] - In terms of pre-tax margins, American's margin was 5.8% in Q2, significantly lower than Delta's 9.8% and United's 7.8% [4] - Year-to-date performance shows American's shares down 30%, while United and Delta have seen increases of 3% and 2%, respectively [5] Market Position - The airline is described as being in a "bronze metal syndrome," consistently trailing behind its competitors in stock performance and profitability metrics [5] - American Airlines has a heavier domestic focus (~70%) compared to Delta and United (~55%), which may impact its recovery strategy [8] Strategic Focus - The airline industry is increasingly focusing on enhancing revenue from premium seating, with American expected to align its strategy accordingly [6][7] - American Airlines has signed a credit card deal with Citibank, set to take effect in 2026, which may enhance its competitive position in the credit card market [9] - The introduction of the Airbus A321XLR for trans-Atlantic service is anticipated to open new opportunities for American Airlines, with the first route planned from New York to Los Angeles [11] Regional Performance - American Airlines holds a dominant position in Latin America, which could provide a competitive advantage, especially as United faced revenue declines in the region [10]

Core Insights - United Airlines Holdings Inc is a major American airline with a significant global presence, competing with Delta Air Lines and American Airlines [1] - UBS analyst Thomas Wadewitz set a price target of $128 for UAL, indicating a potential upside of 30.36% from its current trading price of $98.19 [1][5] Financial Performance - In Q3 2025, United Airlines reported an adjusted EPS of $2.78, exceeding the Zacks Consensus Estimate of $2.64, but reflecting a 16.5% decline year-over-year [2][5] - The company's revenue increased by 2.6% to $15.2 billion, slightly missing the expected $15.3 billion, driven by growth in passenger and cargo sales [2] - Passenger revenue was $13.82 billion, about $90 million below expectations, while cargo revenue was $431 million, missing forecasts by approximately $1 million [3] Future Outlook - United Airlines anticipates record operating revenue for Q4 2025, guiding an EPS range between $3.00 and $3.50 [3][5] - Despite a revenue miss, the company remains optimistic about its performance in the upcoming quarter [3] Operational Metrics - Revenue passenger miles increased to 73.77 billion and available seat miles rose to 87.42 billion, both slightly surpassing estimates [4] - The load factor was 84.4%, which was 0.8 percentage points below expectations [4] - The stock experienced a decrease of 5.63%, with fluctuations between a low of $94.05 and a high of $106.45 during the trading day [4]

Service Update - United Airlines has started offering in-flight Starlink Wi-Fi on its mainline aircraft for US, Canada, and Mexico flights [1] - United expects to equip approximately 15 mainline planes per month with Starlink antennas [5] Technology Performance - Starlink Wi-Fi provided download speeds comparable to home broadband, around 250 megabits per second, peaking near 400 megabits per second [2] - Upload speeds were around 30 megabits per second [2] - Video calls were clear, indicating high bandwidth and low latency [4] Pricing and Membership - Starlink Wi-Fi will be offered free to Mileage Plus members [5] - The current standard Wi-Fi option costs $8 for Mileage Plus members or $10 for non-members [5]

Core Insights - United Airlines is preparing to launch a rewards-earning debit card, similar to Southwest Airlines' recent offering [1][13] - The card will be called the United MileagePlus® Debit Rewards and will charge a $4 monthly fee, which can be waived with a $2,000 average monthly balance [2][4] - The earning rates for the card are relatively low, with 1 mile per $1 spent on United purchases and 1 mile per $2 spent on other purchases [3][9] Earning Structure - Cardholders can earn 2,500 bonus miles for spending $10,000 in a year, but there is a cap of 70,000 miles on annual earnings [4][9] - The effective earning rate is 0.5 miles per $1 spent on everyday purchases, which is less than half of what United's no-annual-fee credit card offers [9][14] Partnerships and Technology - The debit card will operate on Visa's network and utilize SoFi Technologies' Galileo Financial Technologies platform [6] - Sunrise Banks N.A. will serve as the banking partner, providing FDIC insurance up to $250,000 for card funds [7] Market Positioning - The card is not expected to be a good deal for most travelers due to its low earning rates compared to existing credit card options [9][14] - It may be a viable option for individuals who cannot qualify for a rewards-earning credit card, allowing them to earn some rewards on everyday spending [11][14]

Group 1 - Seaport Global raised the target price for United Airlines from $115 to $130, maintaining a "Buy" rating [1]

Economic Impact of High-Income Consumers - High-income Americans, earning over $100,000 annually, are significantly contributing to the US economy, positively impacting various industries such as travel, automotive, packaged foods, and discount retailers [1] - Delta Air Lines reported a 9% year-over-year increase in revenue from its premium services, indicating strong demand from affluent consumers [1] - United Airlines noted a higher demand among its loyalty customers, who are financially capable of continuing travel despite economic uncertainties [2] Spending Trends Among Income Groups - The Federal Reserve's Beige Book highlighted robust spending on luxury travel and accommodations by higher-income individuals, contrasting with lower- and middle-income households that are seeking discounts due to economic pressures [4][5] - Data from the Bank of America Institute showed a 2.6% increase in spending by households in the top third of income distribution, while spending for the lowest third rose only 0.6% [5] - A JPMorgan survey indicated that higher-income consumers are optimistic about the economy and plan to increase spending on nonessential goods, unlike their middle- and lower-income counterparts who intend to reduce spending [6] Wage Growth and Consumer Behavior - Wage growth disparities are contributing to the differing spending habits between high-income and lower-income consumers, with wages for the highest earners rising by 4% compared to just 1.4% for the lowest earners [7] - This widening wage gap has been a significant factor in the changing consumer behavior observed over the past six months [7]

Group 1: Hong Kong Stock Market - Changfei Optical Fiber Cable (06869) fell over 4%, down more than 40% from its September peak due to declining fiber optic prices and shareholder sell-offs [1] - Solar stocks continued to decline, with Fuyao Glass (03606) down over 3%, New Special Energy (01799) down over 5%, Xinyi Solar (00968) down over 5%, and Folaite Glass (06865) down over 4%. Rumors about the establishment of a polysilicon storage platform were found to be untrue, and future installation demand remains to be observed [2] Group 2: US Stock Market - United Airlines (UAL.US) fell 5.63% after reporting third-quarter revenue slightly below market expectations [3] - TSMC (TSM.US) decreased by 1.60%, with Q3 net profit reaching a record high of 452.3 billion New Taiwan dollars [3] - Micron Technology (MU.US) rose 5.52% as Morgan Stanley upgraded its rating from "hold" to "buy" [4] Group 3: Technology and Innovation - Google (GOOGL.US) increased by 0.17% after launching a new video generation model, Veo 3.1, which improved audio output and editing control [4] - Thermo Fisher Scientific (TMO.US) rose 1.69% as it collaborates with OpenAI to enhance drug development speed and success rates [4] Group 4: Other Notable Movements - DoorDash (DASH.US) fell 2.18% after announcing a partnership with Waymo to launch autonomous delivery services [5] - Derin Holdings (01709) rose over 3% after signing a strategic cooperation agreement with Antalpha to promote digital asset business [5] - NIO-SW (09866) increased over 2% after responding to a lawsuit from a Singapore sovereign wealth fund, stating that the allegations have no factual basis [5]

PART I. FINANCIAL INFORMATION This section provides detailed financial statements, management's analysis, market risk disclosures, and internal control information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents UAL's unaudited condensed consolidated financial statements for Q3 and 9M 2025 and 2024, including notes [UAL Statements of Consolidated Operations](index=3&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Statements%20of%20Consolidated%20Operations) UAL's Q3 2025 net income slightly decreased despite revenue growth; nine-month net income increased, nonoperating expenses improved UAL Statements of Consolidated Operations (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :----------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Total Operating Revenue | $15,225 | $14,843 | $43,673 | $42,368 | | Total Operating Expense | $13,830 | $13,278 | $40,345 | $38,775 | | Operating Income | $1,395 | $1,565 | $3,328 | $3,593 | | Net Income | $949 | $965 | $2,309 | $2,164 | | EPS, Basic | $2.93 | $2.93 | $7.10 | $6.58 | | EPS, Diluted | $2.90 | $2.90 | $7.02 | $6.49 | - Nonoperating expense, net, significantly decreased by **$138 million (49.6%)** for the three months and **$386 million (52.7%)** for the nine months ended September 30, 2025, primarily due to lower interest expense and reduced unrealized losses on investments[9](index=9&type=chunk) [UAL Statements of Consolidated Comprehensive Income (Loss)](index=4&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Statements%20of%20Consolidated%20Comprehensive%20Income%20%28Loss%29) UAL's total comprehensive income slightly decreased in Q3 2025 but increased for the nine months ended September 30, 2025 UAL Statements of Consolidated Comprehensive Income (Loss) (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net Income | $949 | $965 | $2,309 | $2,164 | | Total Other Comprehensive Loss | $(19) | $(12) | $(64) | $(47) | | Total Comprehensive Income, Net | $930 | $953 | $2,245 | $2,117 | [UAL Consolidated Balance Sheets](index=5&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Consolidated%20Balance%20Sheets) UAL's total assets increased to **$76,313 million** at September 30, 2025, driven by operating property and lease assets UAL Consolidated Balance Sheets (Millions) | Asset/Liability Category | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Total Assets | $76,313 | $74,083 | | Total Current Assets | $18,094 | $18,883 | | Total Current Liabilities | $27,119 | $23,314 | | Total Stockholders' Equity | $14,309 | $12,675 | - Advance ticket sales increased significantly to **$9,338 million** at September 30, 2025, from **$7,561 million** at December 31, 2024, indicating strong future revenue bookings[13](index=13&type=chunk) - Long-term debt, finance leases, and other financial liabilities decreased to **$20,807 million** from **$25,203 million**, reflecting debt prepayments and scheduled amortization[13](index=13&type=chunk) [UAL Condensed Statements of Consolidated Cash Flows](index=6&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) UAL's operating cash flow slightly decreased; investing and financing cash usage significantly increased, leading to a net cash decrease UAL Condensed Statements of Consolidated Cash Flows (Millions) | Cash Flow Activity | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Net cash provided by operating activities | $7,145 | $7,221 | | Net cash used in investing activities | $(4,785) | $(936) | | Net cash used in financing activities | $(4,436) | $(3,591) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(2,075) | $2,694 | - Investing activities saw a substantial increase in cash usage, primarily due to purchases of short-term and other investments (**$6,454 million** in 2025 vs. **$4,057 million** in 2024) and a decrease in proceeds from sales of such investments[14](index=14&type=chunk) - Financing activities included **$4.2 billion** in payments for debt, finance leases, and other financial liabilities, and **$610 million** for common stock repurchases during the nine months ended September 30, 2025[14](index=14&type=chunk) [UAL Statement of Consolidated Stockholders' Equity](index=7&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Statement%20of%20Consolidated%20Stockholders%27%20Equity) UAL's total stockholders' equity increased to **$14,309 million** at September 30, 2025, driven by net income and stock-settled compensation UAL Statement of Consolidated Stockholders' Equity (Millions) | Equity Component | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :----------------------------- | :---------------------- | :---------------------- | | Additional Capital Invested | $8,878 | $8,980 | | Stock Held in Treasury | $(3,745) | $(3,377) | | Retained Earnings | $9,049 | $6,880 | | Accumulated Other Comprehensive Income | $123 | $188 | | Total Stockholders' Equity | $14,309 | $12,675 | - Retained earnings increased significantly from **$6,880 million** at December 31, 2024, to **$9,049 million** at September 30, 2025, primarily due to net income[15](index=15&type=chunk) - The company repurchased **7.8 million shares** of common stock for **$612 million** during the nine months ended September 30, 2025[15](index=15&type=chunk) [United Airlines, Inc. Statements of Consolidated Operations](index=9&type=section&id=United%20Airlines%2C%20Inc.%20Statements%20of%20Consolidated%20Operations) United Airlines, Inc. reported increased operating revenue for both periods, with Q3 net income slightly down and nine-month net income up United Airlines, Inc. Statements of Consolidated Operations (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :----------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Total Operating Revenue | $15,225 | $14,843 | $43,673 | $42,368 | | Total Operating Expense | $13,829 | $13,278 | $40,344 | $38,774 | | Operating Income | $1,396 | $1,565 | $3,329 | $3,594 | | Net Income | $949 | $965 | $2,310 | $2,165 | [United Airlines, Inc. Statements of Consolidated Comprehensive Income (Loss)](index=10&type=section&id=United%20Airlines%2C%20Inc.%20Statements%20of%20Consolidated%20Comprehensive%20Income%20%28Loss%29) United's total comprehensive income slightly decreased in Q3 2025 but increased for the nine months ended September 30, 2025 United Airlines, Inc. Statements of Consolidated Comprehensive Income (Loss) (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net Income | $949 | $965 | $2,310 | $2,165 | | Total Other Comprehensive Loss | $(19) | $(12) | $(64) | $(47) | | Total Comprehensive Income, Net | $930 | $953 | $2,246 | $2,118 | [United Airlines, Inc. Consolidated Balance Sheets](index=11&type=section&id=United%20Airlines%2C%20Inc.%20Consolidated%20Balance%20Sheets) United's total assets increased to **$76,313 million** at September 30, 2025, consistent with UAL's consolidated balance sheet United Airlines, Inc. Consolidated Balance Sheets (Millions) | Asset/Liability Category | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Total Assets | $76,313 | $74,083 | | Total Current Assets | $18,094 | $18,883 | | Total Current Liabilities | $27,116 | $23,315 | | Total Stockholder's Equity | $14,281 | $12,644 | - A key difference from UAL's balance sheet is the 'Payable to parent' liability, which was **$1,633 million** at September 30, 2025, reflecting intercompany balances[23](index=23&type=chunk) [United Airlines, Inc. Condensed Statements of Consolidated Cash Flows](index=12&type=section&id=United%20Airlines%2C%20Inc.%20Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) United's operating cash flows decreased, while investing and financing cash usage increased, mirroring UAL's consolidated figures United Airlines, Inc. Condensed Statements of Consolidated Cash Flows (Millions) | Cash Flow Activity | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Net cash provided by operating activities | $6,428 | $7,120 | | Net cash used in investing activities | $(4,785) | $(936) | | Net cash used in financing activities | $(3,718) | $(3,490) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(2,075) | $2,694 | [United Airlines, Inc. Statement of Consolidated Stockholder's Equity](index=13&type=section&id=United%20Airlines%2C%20Inc.%20Statement%20of%20Consolidated%20Stockholder%27s%20Equity) United's total stockholder's equity increased to **$14,281 million** at September 30, 2025, driven by net income and capital invested United Airlines, Inc. Statement of Consolidated Stockholder's Equity (Millions) | Equity Component | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :----------------------------- | :---------------------- | :---------------------- | | Additional Capital Invested | $727 | $617 | | Retained Earnings | $11,798 | $9,487 | | Accumulated Other Comprehensive Income | $123 | $188 | | Payable to Related Parties, Net | $1,633 | $2,352 | | Total Stockholder's Equity | $14,281 | $12,644 | - The 'Payable to Related Parties, Net' decreased from **$2,352 million** to **$1,633 million**, indicating a reduction in intercompany liabilities[25](index=25&type=chunk) [Combined Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Combined%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations for UAL and United's financial statements, covering accounting policies, revenue, EPS, and debt [Note 1 - Basis of Presentation](index=14&type=section&id=Note%201%20-%20Basis%20of%20Presentation) UAL is a holding company, with United Airlines, Inc. comprising substantially all operations, managed as a single segment - United Airlines Holdings, Inc. (UAL) is a holding company, and United Airlines, Inc. (United) is its wholly-owned subsidiary, comprising substantially all of UAL's operating revenues, expenses, assets, liabilities, and cash flows[26](index=26&type=chunk) - The company manages its operations as a single segment, with performance assessed and resource allocation decisions made based on Net income[31](index=31&type=chunk) - Quarterly financial data is subject to seasonal fluctuations, with higher travel demand historically reflected in the second and third quarters[29](index=29&type=chunk) [Note 2 - Revenue Recognition](index=15&type=section&id=Note%202%20-%20Revenue%20Recognition) Operating revenue increased across Domestic, Atlantic, Pacific regions, with contributions from ancillary services and frequent flyer programs Operating Revenue by Geographic Region (Millions) | Geographic Region | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Domestic | $8,990 | $8,648 | $25,808 | $25,082 | | Atlantic | $3,486 | $3,432 | $8,755 | $8,542 | | Pacific | $1,568 | $1,531 | $5,009 | $4,721 | | Latin America | $1,181 | $1,232 | $4,100 | $4,023 | | Total | $15,225 | $14,843 | $43,673 | $42,368 | - Ancillary fees within passenger revenue were approximately **$1.3 billion** for the three months and **$3.5 billion** for the nine months ended September 30, 2025, showing an increase from the prior year[34](index=34&type=chunk) - Frequent flyer deferred revenue ending balance increased to **$7,702 million** at September 30, 2025, from **$7,371 million** at September 30, 2024, with **$2.4 billion** recognized in Other operating revenue for the nine months ended September 30, 2025[34](index=34&type=chunk) [Note 3 - Earnings Per Share](index=16&type=section&id=Note%203%20-%20Earnings%20Per%20Share) UAL's basic and diluted EPS remained stable in Q3 2025 but increased for the nine months, with **7.8 million** shares repurchased Earnings Per Share | Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Earnings per share, basic | $2.93 | $2.93 | $7.10 | $6.58 | | Earnings per share, diluted | $2.90 | $2.90 | $7.02 | $6.49 | | Basic weighted-average shares outstanding (millions) | 323.7 | 329.0 | 325.3 | 328.7 | | Diluted weighted-average shares outstanding (millions) | 326.9 | 332.7 | 329.0 | 333.3 | - The company repurchased approximately **7.8 million shares** of UAL common stock for **$612 million** during the nine months ended September 30, 2025, with approximately **$0.8 billion** remaining under the program as of October 9, 2025[39](index=39&type=chunk)[127](index=127&type=chunk) - All outstanding warrants to purchase UAL common stock were exercised in net share settlements by March 2025[38](index=38&type=chunk) [Note 4 - Accumulated Other Comprehensive Income (Loss)](index=17&type=section&id=Note%204%20-%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) UAL's AOCI decreased to **$123 million** at September 30, 2025, primarily due to reclassifications related to pension liabilities Accumulated Other Comprehensive Income (Loss) (Millions) | AOCI Component | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :-------------------------------- | :---------------------- | :---------------------- | | Pension and Other Postretirement Liabilities | $514 | $607 | | Investments and Other | $10 | $0 | | Deferred Taxes | $(401) | $(419) | | Total | $123 | $188 | - Amounts reclassified to earnings from AOCI totaled **$(73) million** for the nine months ended September 30, 2025, primarily from pension and other postretirement liabilities[40](index=40&type=chunk) [Note 5 - Income Taxes](index=17&type=section&id=Note%205%20-%20Income%20Taxes) UAL's effective tax rate decreased for both the three and nine months ended September 30, 2025, due to a valuation allowance release Effective Tax Rate | Period | Effective Tax Rate 2025 | Effective Tax Rate 2024 | | :---------------------- | :---------------------- | :---------------------- | | 3 Months Ended Sep 30 | 24.4% | 25.0% | | 9 Months Ended Sep 30 | 22.5% | 24.4% | - The decrease in the effective tax rate was primarily attributed to a release of valuation allowance related to realized capital gains[42](index=42&type=chunk) [Note 6 - Pension and Other Postretirement Benefit Plans](index=18&type=section&id=Note%206%20-%20Pension%20and%20Other%20Postretirement%20Benefit%20Plans) Net periodic pension benefit cost decreased, while other postretirement benefits showed a net credit, with **$289 million** in pension contributions Benefit Cost Component (Millions) | Benefit Cost Component | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Total Pension Benefits | $23 | $26 | $68 | $81 | | Total Other Postretirement Benefits | $(20) | $(20) | $(61) | $(59) | - The company contributed **$289 million** to its U.S. domestic tax-qualified defined benefit pension plans during the nine months ended September 30, 2025[43](index=43&type=chunk) [Note 7 - Fair Value Measurements, Investments and Notes Receivable](index=18&type=section&id=Note%207%20-%20Fair%20Value%20Measurements%2C%20Investments%20and%20Notes%20Receivable) The company holds various financial assets at fair value, including cash, short-term investments, and equity securities Asset Category (Millions) | Asset Category | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Cash and cash equivalents | $6,730 | $8,769 | | Short-term investments | $6,599 | $5,706 | | Long-term investments: Equity securities | $50 | $71 | - United holds equity investments in Azul Linhas Aéreas Brasileiras S.A., Archer Aviation Inc., Eve Holding, Inc., and Mesa Air Group, Inc.; Azul is undergoing a reorganization, with United potentially providing up to **$300 million** in equity investment[46](index=46&type=chunk)[47](index=47&type=chunk) - Equity method investments include a **19%** minority interest in Republic Airways and a **40%** minority ownership stake in CommuteAir LLC; United also has a **33%** ownership interest in the United Airlines Ventures Sustainable Flight Fund[51](index=51&type=chunk) [Note 8 - Debt](index=20&type=section&id=Note%208%20-%20Debt) UAL had **$3.0 billion** available under its revolving credit facility, with **$21.664 billion** in contractual principal payments for long-term debt - The company had **$3.0 billion** undrawn and available under its revolving credit facility as of September 30, 2025, with no outstanding borrowings[54](index=54&type=chunk) Contractual Principal Payments (Millions) | Year | Contractual Principal Payments (Millions) | | :--- | :---------------------------------------- | | Last Three Months of 2025 | $397 | | 2026 | $4,092 | | 2027 | $2,008 | | 2028 | $1,835 | | 2029 | $2,928 | | After 2029 | $10,403 | | Total | $21,664 | - Mileage Plus Holdings, LLC fully redeemed **$1.52 billion** aggregate principal amount of its outstanding MileagePlus **6.5%** senior secured notes due 2027 on July 7, 2025, fully repaying all indebtedness secured by MileagePlus assets[55](index=55&type=chunk) [Note 9 - Commitments, Contingencies and Guarantees](index=20&type=section&id=Note%209%20-%20Commitments%2C%20Contingencies%20and%20Guarantees) United has **$54.3 billion** in aircraft commitments, guarantees **$2.9 billion** in bonds, and incurred a **$561 million** special charge Purchase Commitments (Billions) | Commitment Period | Purchase Commitments (Billions) | | :------------------ | :------------------------------ | | Last Three Months of 2025 | $4.6 | | 2026 | $7.8 | | 2027 | $5.1 | | 2028 | $6.4 | | 2029 | $8.1 | | After 2029 | $22.4 | | Total | $54.3 | - United guarantees approximately **$2.9 billion** in aggregate principal amount of tax-exempt special facility revenue bonds, due between 2027 and 2041[58](index=58&type=chunk) - A tentative agreement with the Association of Flight Attendants, which included a one-time ratification payment, was voted against in July 2025, resulting in a **$561 million** special charge in the second quarter of 2025[61](index=61&type=chunk) [Note 10 - Special Charges (Credits)](index=21&type=section&id=Note%2010%20-%20Special%20Charges) Special charges for 9M 2025 included a **$561 million** labor contract bonus and **$295 million** net gains on asset sales Special Charge (Credit) Category (Millions) | Special Charge (Credit) Category | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :--------------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Labor contract ratification bonuses | $0 | $0 | $561 | $0 | | (Gains) losses on sale of assets and other special charges | $(73) | $(5) | $(295) | $44 | | Nonoperating debt extinguishment and modification fees | $20 | $75 | $20 | $110 | - Net gains on sale of assets and other special charges were primarily comprised of **$75 million** and **$336 million** of gains on various aircraft sale-leaseback transactions for the three and nine months ended September 30, 2025, respectively[62](index=62&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes UAL's financial performance, condition, and cash flows, highlighting economic factors, governmental actions, and liquidity [Executive Summary](index=22&type=section&id=Executive%20Summary) UAL operates a global route network facing intense competition, macroeconomic challenges, and governmental actions impacting operations - UAL and United operate a comprehensive route network among North American carriers, serving major global markets directly or through the Star Alliance[67](index=67&type=chunk) - Key economic and market factors impacting the company include intense competition, operational challenges, aircraft delivery delays, rising inflation, labor constraints, volatile fuel prices, and interest rate changes[68](index=68&type=chunk) - Governmental actions, such as airspace closures, aircraft certification delays, increased FAA oversight, and proposed DOT regulations, pose significant risks and potential cost increases[69](index=69&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) UAL's Q3 2025 net income slightly decreased despite revenue growth, while nine-month net income increased due to revenue growth and lower fuel costs Results of Operations - 3 Months Ended Sep 30 (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change | | :----------------------- | :------------------------------------ | :------------------------------------ | :------- | | Operating revenue | $15,225 | $14,843 | 2.6 | | Operating expense | $13,830 | $13,278 | 4.2 | | Operating income | $1,395 | $1,565 | (10.8) | | Net income | $949 | $965 | (1.7) | Results of Operations - 9 Months Ended Sep 30 (Millions) | Metric | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change | | :----------------------- | :------------------------------------ | :------------------------------------ | :------- | | Operating revenue | $43,673 | $42,368 | 3.1 | | Operating expense | $40,345 | $38,775 | 4.1 | | Operating income | $3,328 | $3,593 | (7.4) | | Net income | $2,309 | $2,164 | 6.7 | - Passenger revenue increased by **1.9%** in Q3 2025 and **2.5%** in the first nine months of 2025, driven by increased capacity (ASMs up **7.2%** in Q3, **6.0%** in 9M) and passenger volume (up **6.2%** in Q3, **4.7%** in 9M), partially offset by a decrease in yield[74](index=74&type=chunk)[87](index=87&type=chunk) - Salaries and related costs increased by **5.4%** in Q3 and **6.2%** in 9M, primarily due to increased flying activity, a **5.1%** increase in headcount, and higher pay rates[77](index=77&type=chunk)[89](index=89&type=chunk) - Aircraft fuel expense decreased by **6.7%** in the first nine months of 2025, mainly due to a lower average price per gallon of fuel, despite increased consumption[90](index=90&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) UAL had **$13.3 billion** in unrestricted cash and investments, a **$3.0 billion** undrawn credit facility, and **$31.3 billion** in fixed obligations Unrestricted Cash, Cash Equivalents and Short-Term Investments (Millions) | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Unrestricted cash, cash equivalents and short-term investments | $13,300 | $14,500 | - The company has a **$3.0 billion** revolving credit facility, which was undrawn as of September 30, 2025[102](index=102&type=chunk) - Total fixed obligations, including debt, leases, and other financial liabilities, amounted to approximately **$31.3 billion** as of September 30, 2025, with **$5.2 billion** due within the next 12 months[104](index=104&type=chunk) Aircraft Firm Commitments | Aircraft Type | Number of Firm Commitments | | :-------------- | :------------------------- | | 787 | 142 | | 737 MAX 9 | 110 | | 737 MAX 10 | 167 | | A321neo | 127 | | A321XLR | 50 | | A350 | 45 | [Sources and Uses of Cash](index=30&type=section&id=Sources%20and%20Uses%20of%20Cash) Operating cash flow slightly decreased, while investing and financing cash usage significantly increased, resulting in a net cash decrease Cash Flow Activity (Millions) | Cash Flow Activity | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Operating activities | $7,145 | $7,221 | | Investing activities | $(4,785) | $(936) | | Financing activities | $(4,436) | $(3,591) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(2,075) | $2,694 | - Cash flows used in investing activities increased by **$3.8 billion**, primarily due to an increase in the purchase of short-term and other investments and a decrease in proceeds from their sale[109](index=109&type=chunk) - Financing activities included **$4.2 billion** in debt, finance lease, and other financial liability principal payments, and **$612 million** in common stock repurchases[109](index=109&type=chunk)[110](index=110&type=chunk) [Critical Accounting Policies](index=30&type=section&id=Critical%20Accounting%20Policies) No material changes to critical accounting policies were reported for the current interim period, referring to the 2024 Form 10-K for details - No material changes to critical accounting policies were reported for the current interim period, referring to the 2024 Form 10-K for details[114](index=114&type=chunk) [Forward-Looking Information](index=31&type=section&id=Forward-Looking%20Information) This section outlines forward-looking statements and emphasizes that actual results may differ materially due to various risks and uncertainties - Forward-looking statements cover financial position, results of operations, capital allocation, market position, fleet plan strategy, fares, booking trends, product development, and business strategy[115](index=115&type=chunk) - Actual results could differ materially due to numerous factors, including execution risks of strategic plans, changes in fleet and network strategy, failure to manage acquisitions, adverse publicity, intense competition, reliance on limited suppliers, disruptions to regional networks, unfavorable economic/political conditions, reliance on third-party service providers, airport disruptions, geopolitical conflicts, technology reliance, cybersecurity risks, labor disputes, regulatory compliance costs, high/volatile fuel prices, financial leverage, and limitations on tax attributes[117](index=117&type=chunk)[118](index=118&type=chunk) - The company does not undertake any obligation to publicly update or revise any forward-looking statement, except as required by applicable law or regulation[116](index=116&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk were reported compared to the Company's 2024 Annual Report on Form 10-K - No material changes in market risk were reported compared to the 2024 Form 10-K[121](index=121&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) UAL and United's disclosure controls and procedures were effective as of September 30, 2025, with no material changes in internal control - UAL's and United's disclosure controls and procedures were evaluated and deemed effective as of September 30, 2025[122](index=122&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended September 30, 2025[123](index=123&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, and exhibits for the reporting period [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the description of legal proceedings provided in the 2024 Form 10-K, indicating no new material information - For legal proceedings, the report refers to the information provided in the 2024 Form 10-K[124](index=124&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the risk factors discussed in the 2024 Form 10-K, implying no new or materially changed risk factors - For risk factors, the report refers to the information provided in the 2024 Form 10-K[125](index=125&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **221,694 shares** of common stock during Q3 2025, with **$0.8 billion** remaining under the repurchase program Unregistered Sales of Equity Securities and Use of Proceeds (Millions) | Period | Total number of shares (or units) purchased | Average price paid per share (or unit) | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (in millions) | | :--------------- | :---------------------------------------- | :------------------------------------- | :---------------------------------------------------------------------------------------------------------------------------------- | | July 1-31 | 168,338 | $84.69 | $815 | | August 1-31 | 52,356 | $87.27 | $810 | | September 1-30 | 1,000 | $94.96 | $810 | | Total | 221,694 | | | - As of October 9, 2025, approximately **$0.8 billion** remains available for repurchase under the **$1.5 billion** share repurchase program authorized in October 2024[127](index=127&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) CEO J. Scott Kirby adopted a Rule 10b5-1 trading arrangement; no other directors or officers reported similar arrangements - CEO J. Scott Kirby adopted a Rule 10b5-1 trading arrangement on August 29, 2025, to sell up to **220,000 shares** and gift **20,000 shares** of common stock by December 31, 2026[130](index=130&type=chunk) - No other directors or officers reported adopting, modifying, or terminating Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[131](index=131&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits including an aircraft purchase agreement amendment, SOX certifications, and Inline XBRL financial data - Exhibits include Amendment No. 8 to the Amended and Restated A350-900 Purchase Agreement with Airbus S.A.S[134](index=134&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer for both UAL and United are included, pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[134](index=134&type=chunk) - The financial statements and cover page data are provided in Inline XBRL format[134](index=134&type=chunk)

Core Insights - United Airlines Holdings, Inc. (UAL) reported mixed third-quarter 2025 results, with earnings surpassing estimates but revenues falling short [1][10] - Adjusted earnings per share (EPS) for Q3 2025 was $2.78, exceeding the Zacks Consensus Estimate of $2.64, but down 16.5% year-over-year [1][10] - Operating revenues reached $15.2 billion, missing the consensus estimate of $15.3 billion, but reflecting a 2.6% year-over-year increase [2][10] Revenue Performance - Passenger revenues, which constituted 90.7% of total revenues, increased by 1.9% year-over-year to $13.8 billion [2] - Cargo revenues grew by 3.2% year-over-year to $431 million, while revenues from other sources rose by 13.2% to $979 million [2][3] - Premium cabin revenues increased by 6% year-over-year, Basic Economy revenues rose by 4%, and loyalty revenues grew by 9% [3] Capacity and Traffic - Airline traffic, measured in revenue passenger miles, grew by 6.1%, while capacity, measured in available seat miles, expanded by 7.2% [5] - The consolidated load factor decreased by 0.7 percentage points year-over-year to 83.3% [5] Cost and Expenses - Operating expenses increased by 4.2% year-over-year to $13.8 billion [7] - Consolidated unit cost per available seat mile, excluding certain expenses, decreased by 0.9% year-over-year to 12.15 cents [7] Cash Flow and Share Repurchase - UAL generated $1.21 billion in free cash flow during the September quarter [8] - The company repurchased $19 million of its shares in Q3 2025 [8] Future Outlook - For Q4 2025, UAL anticipates adjusted EPS between $3.00 and $3.50, with the Zacks Consensus Estimate at $2.67 [9][10] - The company expects Q4 2025 to achieve the highest total operating revenue for a single quarter in its history [3]