Core Insights - United Airlines reported quarterly earnings of $2.78 per share, exceeding the Zacks Consensus Estimate of $2.64 per share, but down from $3.33 per share a year ago, indicating an earnings surprise of +5.30% [1][2] - The company generated revenues of $15.23 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.51%, and showing an increase from $14.84 billion year-over-year [2] - United Airlines has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Financial Performance - The earnings surprise of +5.30% reflects a positive trend in earnings performance, while the revenue miss indicates potential challenges in revenue growth [1][2] - The current consensus EPS estimate for the upcoming quarter is $2.67, with expected revenues of $15.08 billion, and for the current fiscal year, the EPS estimate is $10.15 on revenues of $58.83 billion [7] Market Position - United Airlines shares have increased by approximately 6.2% since the beginning of the year, underperforming compared to the S&P 500's gain of 13% [3] - The Zacks Rank for United Airlines is currently 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Industry Context - The Transportation - Airline industry, to which United belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating a challenging environment for the sector [8] - The performance of United Airlines may be influenced by the overall outlook for the airline industry, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8]

United Airlines expects strong travel demand leading to record revenue in the holiday quarter, but the stock fell after third-quarter revenue missed expectations, again. ...

Core Insights - U.S. equities showed mixed performance on October 15, 2025, influenced by corporate earnings reports and U.S.-China trade tensions [1] Major Index Performance - The Dow Jones Industrial Average (DJIA) rose 0.4% or 202.88 points to close at 46,270.46, driven by strong financial sector earnings, despite significant intraday volatility [2] - The S&P 500 (SPX) also increased by 0.4% to 6,671.06 points, reflecting mixed signals and fluctuations throughout the day [3] - The Nasdaq Composite (IXIC) was the best performer, climbing 0.7% to 22,670.08, supported by optimism in the semiconductor and AI sectors, although it faced extreme volatility [4] Upcoming Market Events - Investors are awaiting the Consumer Price Index (CPI) for September, the Federal Reserve's Beige Book report, and the FOMC meeting minutes, which may influence future trading sessions [5] Major Stock News and Corporate Announcements - Bank of America (BAC) shares rose between 3.9% and 4.9% after reporting Q3 EPS of $1.06, exceeding estimates, while Morgan Stanley (MS) surged between 5% and 7.2% with a Q3 EPS of $2.80, driven by strong dealmaking [7] - Nvidia (NVDA) gained 1.2% to 2.5% due to robust demand for AI chips, and Advanced Micro Devices (AMD) soared close to 10% following a deal with Oracle [8] - A consortium including BlackRock, Microsoft, and Nvidia announced a $40 billion acquisition of Aligned Data Centers, enhancing cloud and AI infrastructure [9] Geopolitical Factors - U.S.-China trade tensions, including potential tariffs and embargoes, contributed to market volatility and increased gold prices, which reached over $4,200 per ounce, up nearly 60% for the year [12]

Core Insights - United Airlines reported mixed earnings for its third fiscal quarter, with an earnings per share (EPS) of $2.78 on $15.2 billion in revenue, and pre-tax earnings of $1.3 billion, although revenue fell short of Wall Street expectations [1] - Analysts had projected an EPS of $2.64 to $2.60, with revenue estimates ranging from $15.3 billion to $15.38 billion [2] - Despite the lackluster revenue report, United expects the fourth quarter to achieve the highest total operating revenue in company history, driven by increases in premium cabin, basic economy, cargo, and loyalty revenue sources [3] Financial Performance - United Airlines' EPS of $2.78 exceeded analyst estimates, but revenue was below expectations [1][2] - For the full fiscal year, JPMorgan analysts estimate an EPS of $9.92 on revenue of $58.99 billion, and for fiscal year 2026, an EPS of $13.58 on revenue of $64.36 billion [5] Strategic Outlook - CEO Scott Kirby emphasized that customer investments have helped retain brand-loyal customers, contributing to economic resilience amid macroeconomic volatility [4] - The airline plans to invest over $1 billion in customer initiatives, with a similar investment planned for 2026 [4] Market Position - JPMorgan analysts maintain an overweight rating for United Airlines, citing strong demand for international travel and premium products as key industry tailwinds [6] - The analysts expect trends to favor major legacy airlines over low-cost carriers in the medium term, benefiting United Airlines [6] Stock Performance - United's stock rose less than 1% after the earnings report and has increased approximately 55% over the last six months [6]

Core Insights - The Chicago-based carrier reported a 4.3% decrease in revenue per available seat mile for the third quarter, but anticipates a significant improvement in the fourth quarter due to the busy holiday travel season [1] Financial Performance - Revenue per available seat mile decreased by 4.3% in Q3 [1] - The company expects meaningful improvement in Q4 [1] Market Outlook - The upcoming fourth quarter is expected to benefit from increased travel during the holiday season [1]

Airlines earnings are out. Phil Leau has them. Phil >> Morgan, you are preient.They were a strong beat. United on the third quarter beating the street by earning 278 a share, well above the street expectation of 263. Revenue was a slight miss, but not by much.15.22% billion. The street was expecting 15.32% billion. The numbers within the numbers for the quarter, you've got revenue per seat mile down 4.3%, cost per seat mile down 0.9% and a pre-tax margin of 8%.And then there's the metrics that tell people w ...

Candlestick Capital Founder Jack Woodruff said he expects shares of United Airlines to more than double in the next two years https://t.co/r3MFbC4Mnf ...

Core Insights - United Airlines has forecasted a higher-than-expected profit for the fourth quarter, driven by strong demand for premium travel and enhanced pricing power [1] Group 1: Financial Performance - The company anticipates robust profitability in the upcoming quarter, indicating a positive outlook for its financial performance [1] Group 2: Market Demand - There is a notable increase in demand for premium travel, which is contributing significantly to the company's revenue growth [1] Group 3: Pricing Strategy - Improved pricing power is highlighted as a key factor in the company's ability to forecast higher profits, suggesting effective pricing strategies in place [1]

A United Airlines Boeing 737-MAX 8 aircraft departs at San Diego International Airport en route to New York on Aug. 24, 2024.United Airlines on Wednesday forecast higher-than-expected earnings for the fourth quarter after a rocky start to 2025.The carrier expects to earn between $3 and $3.50 a share for the last three months of the year, compared with analysts' estimate of $2.86 a share.United has been expanding its flying capacity, while its rivals have scaled back some of their growth plans after a glut o ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 2025 Performance Highlights](index=1&type=section&id=Q3%202025%20Performance%20Highlights) United Airlines reported Q3 2025 profit and Q4 outlook exceeding Wall Street expectations, driven by brand-loyal customers and operational excellence Q3 2025 Key Financial Metrics | Metric | Value | YoY Change | Guidance | | :-------------------------------- | :---------- | :--------- | :---------------- | | Diluted EPS | $2.90 | - | - | | Adjusted Diluted EPS | $2.78 | - | $2.25 to $2.75 (above top end) | | Pre-tax earnings | $1.3 billion | - | - | | Pre-tax margin | 8.2% | - | - | | Adjusted pre-tax earnings | $1.2 billion | - | - | | Adjusted pre-tax margin | 8.0% | - | - | | Total operating revenue | $15.2 billion | +2.6% | - | | Premium cabin revenue | - | +6% | - | | Basic Economy revenue | - | +4% | - | | Cargo revenue | - | +3% | - | | Loyalty revenue | - | +9% | - | - The company attributes its resilience in an economically volatile year to brand-loyal customers and diverse revenue sources[1](index=1&type=chunk) - United flew its **largest** summer mainline schedule ever in 2025 and achieved its **lowest** third-quarter cancel rate in history, demonstrating operational excellence[1](index=1&type=chunk) [Q4 2025 Outlook](index=1&type=section&id=Q4%202025%20Outlook) United anticipates a strong Q4 2025, with adjusted diluted EPS guidance of $3.00 to $3.50 and expects to achieve the **highest** total operating revenue for a single quarter in company history Q4 2025 Outlook Metrics | Metric | Guidance | | :-------------------------- | :---------------- | | Adjusted Diluted EPS | $3.00 to $3.50 | | Total Operating Revenue | Highest for a single quarter in company history | | Unit Revenue (YoY vs Q3) | Meaningful improvement | - The strong Q4 outlook is fueled by a growing base of brand-loyal customers and an improving economic and demand environment[1](index=1&type=chunk)[3](index=3&type=chunk) [Strategic Priorities and Customer Investments](index=1&type=section&id=Strategic%20Priorities%20and%20Customer%20Investments) United continues to make **significant** customer investments, totaling **over $1 billion** this year and an **additional $1 billion** planned for 2026, focusing on enhancing the experience, product, and service - **Over $1 billion** invested in customer experience in 2025, with **another $1 billion** planned for 2026[1](index=1&type=chunk)[3](index=3&type=chunk) - Enhancements include Starlink installations (free for MileagePlus members by 2027), seatback screens (over half of narrowbody fleet updated, **15-point increase** in customer satisfaction since Q3 2022), and **25% more** on food[2](index=2&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) - These investments aim to win and retain brand-loyal customers, providing economic resilience and upside as demand improves[3](index=3&type=chunk) [Third-Quarter Financial Results](index=4&type=section&id=Third-Quarter%20Financial%20Results) [Key Financial Metrics](index=4&type=section&id=Key%20Financial%20Metrics) United's Q3 2025 financial performance included a **2.6% increase** in total operating revenue to **$15.2 billion**, with capacity up **7.2%** Key Financial Metrics Summary | Metric | Value | YoY Change (vs Q3 2024) | | :-------------------------------- | :---------- | :------------------------ | | Capacity | - | +7.2% | | Total operating revenue | $15.2 billion | +2.6% | | TRASM | - | (4.3%) | | CASM | - | (2.8%) | | CASM-ex | - | (0.9%) | | Pre-tax earnings | $1.3 billion | - | | Pre-tax margin | 8.2% | - | | Adjusted pre-tax earnings | $1.2 billion | - | | Adjusted pre-tax margin | 8.0% | - | | Net income | $0.9 billion | - | | Adjusted net income | $0.9 billion | - | | Diluted EPS | $2.90 | - | | Adjusted diluted EPS | $2.78 | - | | Average fuel price per gallon | $2.43 | - | | Ending available liquidity | $16.3 billion | - | | Total debt, finance lease obligations and other financial liabilities | $25.4 billion | - | | Trailing twelve months net leverage | 2.1x | - | | Shares repurchased in Q3 2025 | $19 million | - | | Shares repurchased YTD (as of Sep 30, 2025) | $612 million | - | - Prepaid the remaining **$1.5 billion** balance of MileagePlus bonds, fully repaying all debt secured by the MileagePlus business[9](index=9&type=chunk) [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2025, total operating revenue increased by **2.6%** to **$15,225 million**, primarily driven by passenger revenue growth of **1.9%** Consolidated Statements of Operations Data | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Increase/(Decrease) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :-------------------- | | Operating revenue: | | | | | Passenger revenue | $13,815 | $13,561 | 1.9 | | Cargo revenue | $431 | $417 | 3.2 | | Other operating revenue | $979 | $865 | 13.2 | | **Total operating revenue** | **$15,225** | **$14,843** | **2.6** | | Operating expense: | | | | | Salaries and related costs | $4,555 | $4,323 | 5.4 | | Aircraft fuel | $2,997 | $2,993 | 0.1 | | Landing fees and other rent | $1,002 | $866 | 15.7 | | Aircraft maintenance materials and outside repairs | $779 | $765 | 1.8 | | Depreciation and amortization | $730 | $742 | (1.6) | | Regional capacity purchase | $686 | $651 | 5.3 | | Distribution expenses | $555 | $574 | (3.3) | | Aircraft rent | $54 | $65 | (16.7) | | Special charges (credits) | $(73) | $(5) | NM | | Other operating expenses | $2,546 | $2,304 | 10.5 | | **Total operating expense** | **$13,830** | **$13,278** | **4.2** | | **Operating income** | **$1,395** | **$1,565** | **(10.8)** | | Income before income taxes | $1,255 | $1,286 | (2.4) | | Income tax expense | $306 | $321 | (4.7) | | **Net income** | **$949** | **$965** | **(1.7)** | | Diluted earnings per share | $2.90 | $2.90 | — | [Passenger Revenue and Operating Statistics](index=11&type=section&id=Passenger%20Revenue%20and%20Operating%20Statistics) Consolidated passenger revenue increased by **1.9%** in Q3 2025, with domestic revenue up **3.1%** and Middle East/India/Africa showing **significant growth** of **30.8%** Passenger Revenue and Operating Statistics Summary | Region | 3Q 2025 Passenger Revenue (Millions) | Passenger Revenue vs 3Q 2024 | PRASM vs 3Q 2024 | ASMs vs 3Q 2024 | | :-------------------- | :----------------------------------- | :--------------------------- | :--------------- | :-------------- | | Domestic | $8,099 | 3.1% | (3.3%) | 6.6% | | Europe | $2,933 | (1.3%) | (7.3%) | 6.5% | | Middle East/India/Africa | $347 | 30.8% | 6.1% | 23.3% | | Atlantic (Total) | $3,280 | 1.3% | (6.2%) | 8.0% | | Pacific | $1,359 | 1.8% | (3.9%) | 5.9% | | Latin America | $1,078 | (4.8%) | (13.5%) | 10.1% | | International (Total) | $5,717 | 0.2% | (7.1%) | 7.9% | | **Consolidated** | **$13,815** | **1.9%** | **(5.0%)** | **7.2%** | Passenger Revenue and Operating Statistics Summary | Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------- | | Passengers (thousands) | 48,382 | 45,559 | 6.2 | | RPMs (millions) | 73,769 | 69,549 | 6.1 | | ASMs (millions) | 87,417 | 81,541 | 7.2 | | Passenger load factor (Consolidated) | 84.4% | 85.3% | (0.9) pts. | | PRASM (cents) | 15.80 | 16.63 | (5.0) | | TRASM (cents) | 17.42 | 18.20 | (4.3) | | Average yield per RPM (cents) | 18.73 | 19.50 | (4.0) | | Cargo revenue ton miles (millions) | 890 | 881 | 1.0 | | Aircraft in fleet at end of period | 1,486 | 1,381 | 7.6 | | Employee headcount (thousands) | 111.9 | 106.5 | 5.1 | | CASM (cents) | 15.82 | 16.28 | (2.8) | | CASM-ex (cents) | 12.15 | 12.26 | (0.9) | | Average aircraft fuel price per gallon | $2.43 | $2.56 | (5.1) | | Fuel gallons consumed (millions) | 1,233 | 1,170 | 5.4 | [Operational and Customer Achievements](index=3&type=section&id=Operational%20and%20Customer%20Achievements) [Customer Experience](index=3&type=section&id=Customer%20Experience) United continues to enhance customer experience through technology and infrastructure, leading to the **highest** customer satisfaction rate for a third quarter since 2022 - Launched collaboration with Apple TV, offering free streaming on **130,000+** seatback screens[9](index=9&type=chunk) - Received FAA certification for the first mainline Starlink-equipped aircraft, with free access for MileagePlus customers[13](index=13&type=chunk) - Expanded TSA PreCheck Touchless ID to **12** airports, including Denver and Newark hubs[13](index=13&type=chunk) - Opened a new two-story, **33,000 sq ft** United Club at Denver hub and the United Globe Club at Capital One Arena[13](index=13&type=chunk) - Achieved the **highest** customer satisfaction rate for a third quarter since 2022 across key drivers, supported by an **$85 million** investment in food and beverage[9](index=9&type=chunk) [Operations](index=3&type=section&id=Operations) United demonstrated strong operational reliability in Q3 2025, achieving its **highest** third-quarter completion factor in company history and carrying **over 48 million customers**, a quarterly **record** - Operated the **largest** daily mainline schedule in a quarter, carrying **over 48 million customers (a record)**[9](index=9&type=chunk) - Achieved the **highest** third-quarter completion rate in company history[13](index=13&type=chunk) - United Express achieved **43 days** with a **100% completion rate** in Q3, setting a company **record** of **92 days** year-to-date[13](index=13&type=chunk) - Newark hub achieved its best operational performance for a summer in the airline's history[13](index=13&type=chunk) - Connection Saver saved **290,000** potential missed customer connections, the **highest** for a third quarter in company history[13](index=13&type=chunk) [Network](index=3&type=section&id=Network) United expanded its network **significantly**, resuming flights to Tel Aviv, adding new domestic and international routes, and launching a codeshare program with ITA Airways - Resumed flights to Tel Aviv from Chicago O'Hare and Washington Dulles, starting early November[13](index=13&type=chunk) - Announced summer 2026 flights to new destinations like Split, Croatia; Glasgow, Scotland; Santiago de Compostela, Spain; and Bari, Italy, while bringing back all six new Atlantic destinations from summer 2025[4](index=4&type=chunk) - Expanded winter schedule with additional flights to **15 U.S. cities** and new routes from Newark to Columbia, SC and Chattanooga, TN[16](index=16&type=chunk) - Launched a codeshare program with ITA Airways, providing access to more Italian destinations[16](index=16&type=chunk) - United is the **largest** carrier across the Atlantic, with service to **46 cities** planned for 2026[4](index=4&type=chunk) [Corporate Initiatives and Recognition](index=6&type=section&id=Corporate%20Initiatives%20and%20Recognition) [Employees, Communities and Investments](index=6&type=section&id=Employees%20Commuities%20and%20Investments) United engaged in extensive community and employee initiatives, including its fifth annual September of Service, disaster relief transport, and funding for wildfire-impacted schools - **Over 3,500 employees** volunteered **11,000+ hours** in September of Service, packaging **over 497,000 meals**[16](index=16&type=chunk) - Supported transport of **over 117 responders** and **221,000 pounds** of cargo for **25 non-profit organizations** in disaster relief efforts[16](index=16&type=chunk) - Committed **$250,000** in funding to **24 schools** impacted by California wildfires[16](index=16&type=chunk) - Launched a Campus Ambassador Program to recruit future talent and hosted **18** Girls in Aviation Day events[16](index=16&type=chunk) - United Airlines Ventures invested in supersonic aircraft startup Astro Mechanica[16](index=16&type=chunk) [Awards](index=6&type=section&id=Awards) United and its leadership received multiple recognitions, including being named one of America's Most Admired Workplaces by Newsweek and a Best Employer for Women by Forbes - Recognized in Newsweek's 2026 list of America's Most Admired Workplaces, America's Greatest Workplaces for Parents and Families, and America's Greatest Companies[16](index=16&type=chunk) - Named in Forbes' 2025 list of Best Employers for Women[16](index=16&type=chunk) - CEO Scott Kirby received APEX International's Lifetime Achievement award[16](index=16&type=chunk) - CFO Mike Leskinen was named a Notable Leader in Finance by Crain's Chicago Business[16](index=16&type=chunk) [Financial Statements (Unaudited)](index=17&type=section&id=Financial%20Statements%20(Unaudited)) [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2025, total assets increased to **$76,313 million** from **$74,083 million** at December 31, 2024, primarily driven by an increase in operating property and equipment, net, and operating lease right-of-use assets Condensed Consolidated Balance Sheets Summary | (in millions) | Sep 30, 2025 | Dec 31, 2024 | Change | | :---------------------------------------------------- | :----------- | :----------- | :------- | | **ASSETS** | | | | | Cash and cash equivalents | $6,730 | $8,769 | $(2,039) | | Short-term investments | $6,599 | $5,706 | $893 | | Total current assets | $18,094 | $18,883 | $(789) | | Operating property and equipment, net | $44,968 | $42,908 | $2,060 | | Operating lease right-of-use assets | $4,821 | $3,815 | $1,006 | | **Total assets** | **$76,313** | **$74,083** | **$2,230** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | | Advance ticket sales | $9,338 | $7,561 | $1,777 | | Current maturities of long-term debt, finance leases, and other financial liabilities | $4,621 | $3,453 | $1,168 | | Total current liabilities | $27,119 | $23,314 | $3,805 | | Long-term debt, finance leases, and other financial liabilities | $20,807 | $25,203 | $(4,396) | | Long-term obligations under operating leases | $5,331 | $4,510 | $821 | | **Total liabilities** | **$61,995** | **$61,407** | **$588** | | **Total stockholders' equity** | **$14,309** | **$12,675** | **$1,634** | [Condensed Statements of Consolidated Cash Flows](index=18&type=section&id=Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) For the nine months ended September 30, 2025, net cash provided by operating activities was **$7,145 million**, a slight decrease from **$7,221 million** in the prior year Condensed Statements of Consolidated Cash Flows Summary | (in millions) | 2025 | 2024 | | :---------------------------------------------------- | :----------- | :----------- | | 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 | | Cash, cash equivalents and restricted cash at end of the period | $6,871 | $9,028 | - Investing activities saw a **substantial increase** in cash outflow, largely due to purchases of short-term and other investments (**$6,454 million** in 2025 vs **$4,057 million** in 2024)[67](index=67&type=chunk) - Financing activities included **significant** payments of long-term debt (**$4,196 million**) and repurchases of common stock (**$610 million**)[67](index=67&type=chunk) [Non-GAAP Financial Information](index=8&type=section&id=Non-GAAP%20Financial%20Information) [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) United Airlines uses various non-GAAP financial measures to provide supplemental information that management believes enhances understanding of the company's underlying financial performance and trends - Non-GAAP measures are used to supplement GAAP financial measures, offering additional insights into performance and trends[29](index=29&type=chunk)[44](index=44&type=chunk) - Exclusions typically include special charges, unrealized gains/losses, and other items not related to ordinary course of business[30](index=30&type=chunk)[47](index=47&type=chunk) - Changes in methodology for Adjusted EBITDAR and Free Cash Flow were implemented effective January 1, 2025, with prior periods recast for comparability[48](index=48&type=chunk)[50](index=50&type=chunk) [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [CASM-ex Reconciliation](index=13&type=section&id=CASM-ex%20Reconciliation) For Q3 2025, CASM (GAAP) was **15.82 cents**, decreasing by **2.8%** YoY, while CASM-ex (Non-GAAP) was **12.15 cents**, a **0.9% decrease** compared to Q3 2024 CASM-ex Reconciliation Table | (in cents) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | CASM (GAAP) | 15.82 | 16.28 | (2.8) | | Fuel expense | 3.43 | 3.68 | (6.8) | | Profit sharing | 0.26 | 0.28 | (6.8) | | Third-party business expenses | 0.07 | 0.07 | (3.5) | | Special charges | (0.08) | (0.01) | NM | | **CASM-ex (Non-GAAP)** | **12.15** | **12.26** | **(0.9)** | [Adjusted EBITDA and Adjusted EBITDAR Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDAR%20Reconciliation) Adjusted EBITDA for Q3 2025 was **$2,081 million**, down from **$2,327 million** in Q3 2024, and Adjusted EBITDAR was **$2,302 million**, a decrease from **$2,559 million** in the prior year Adjusted EBITDA and EBITDAR Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Net income (GAAP) | $949 | $965 | | Depreciation and amortization | $730 | $742 | | Interest expense, net of capitalized interest and interest income | $136 | $139 | | Income tax expense | $306 | $321 | | Special charges (credits) | $(73) | $(5) | | Nonoperating unrealized losses on investments, net | $13 | $90 | | Nonoperating debt extinguishment and modification fees | $20 | $75 | | **Adjusted EBITDA (non-GAAP)** | **$2,081** | **$2,327** | | Adjusted EBITDA margin (non-GAAP) | 13.7% | 15.7% | | Fixed portion of operating lease expense | $221 | $232 | | **Adjusted EBITDAR (non-GAAP)** | **$2,302** | **$2,559** | [Adjusted Capital Expenditures Reconciliation](index=14&type=section&id=Adjusted%20Capital%20Expenditures%20Reconciliation) Adjusted capital expenditures for Q3 2025 were **$1,881 million**, an increase from **$1,510 million** in Q3 2024, primarily driven by operating leases converted to finance leases Adjusted Capital Expenditures Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Capital expenditures, net of flight equipment purchase deposit returns (GAAP) | $1,464 | $1,410 | | Property and equipment acquired through the issuance or modification of debt, finance leases and other financial liabilities | — | $48 | | Operating leases converted to finance leases | $417 | $52 | | **Adjusted capital expenditures (Non-GAAP)** | **$1,881** | **$1,510** | [Free Cash Flow Reconciliation](index=14&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow for Q3 2025 was negative **$153 million**, compared to negative **$10 million** in Q3 2024, with the nine months ended September 30, 2025, showing **$3,289 million** Free Cash Flow Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities (GAAP) | $1,218 | $1,498 | | Net cash provided by (used in) investing activities (GAAP) | $(1,743) | $(2,511) | | Net change in short-term investments | $337 | $968 | | Net change in restricted cash | $35 | $35 | | **Free cash flow (Non-GAAP)** | **$(153)** | **$(10)** | [Adjusted Total Debt, Adjusted Net Debt and Net Leverage Reconciliation](index=14&type=section&id=Adjusted%20Total%20Debt,%20Adjusted%20Net%20Debt%20and%20Net%20Leverage%20Reconciliation) As of September 30, 2025, Adjusted total debt was **$32,296 million**, a decrease of **$2,687 million** YoY, resulting in a net leverage ratio of **2.1x** Adjusted Debt and Leverage Reconciliation Table | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase/(Decrease) | | :---------------------------------------------------- | :----------- | :----------- | :------------------ | | Debt, finance lease obligations and other financial liabilities - current and noncurrent (GAAP) | $25,428 | $28,436 | $(3,008) | | Operating lease obligations - current and noncurrent | $5,894 | $4,923 | $971 | | Pension and postretirement liabilities - noncurrent | $974 | $1,624 | $(650) | | **Adjusted total debt (Non-GAAP)** | **$32,296** | **$34,983** | **$(2,687)** | | Less: Cash and cash equivalents | $6,730 | $8,812 | $(2,082) | | Short-term investments | $6,599 | $5,352 | $1,247 | | **Adjusted net debt (Non-GAAP)** | **$18,967** | **$20,819** | **$(1,852)** | | **Net leverage (Non-GAAP)** | **2.1x** | **2.4x** | **(0.3) pts.** | [Adjusted Operating Expenses, Income, and EPS Reconciliation](index=16&type=section&id=Adjusted%20Operating%20Expenses,%20Income,%20and%20EPS%20Reconciliation) Adjusted operating expenses for Q3 2025 increased by **6.2%** to **$10,619 million**, while adjusted diluted EPS decreased by **16.5%** to **$2.78** Adjusted Operating Metrics and EPS Reconciliation Table | (in millions, except per share data) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Operating expenses (GAAP) | $13,830 | $13,278 | 4.2 | | Adjusted operating expenses (Non-GAAP) | $10,619 | $9,998 | 6.2 | | Operating income (GAAP) | $1,395 | $1,565 | (10.8) | | Adjusted operating income (Non-GAAP) | $1,322 | $1,560 | (15.2) | | Operating margin | 9.2% | 10.5% | (1.4) pts. | | Adjusted operating margin (Non-GAAP) | 8.7% | 10.5% | (1.8) pts. | | Pre-tax income (GAAP) | $1,255 | $1,286 | (2.4) | | Adjusted pre-tax income (Non-GAAP) | $1,215 | $1,446 | (16.0) | | Pre-tax margin (GAAP) | 8.2% | 8.7% | (0.4) pts. | | Adjusted pre-tax margin (Non-GAAP) | 8.0% | 9.7% | (1.8) pts. | | Net income (GAAP) | $949 | $965 | (1.7) | | Adjusted net income (Non-GAAP) | $909 | $1,110 | (18.1) | | Diluted earnings per share (GAAP) | $2.90 | $2.90 | — | | Adjusted diluted earnings per share (Non-GAAP) | $2.78 | $3.33 | (16.5) | [Notes to Financial Statements](index=19&type=section&id=Notes%20to%20Financial%20Statements) [Special Charges (Credits) and Unrealized Losses](index=19&type=section&id=Special%20Charges%20(Credits)%20and%20Unrealized%20Losses) In Q3 2025, United recorded net gains on sale of assets and other special charges of **$73 million**, primarily from aircraft sale-leaseback transactions Special Charges and Unrealized Losses Summary | (in millions) | 3 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2025 | | :------------------------------------------------------------------------------------ | :-------------------------- | :-------------------------- | | Operating: | | | | Labor contract ratification bonuses | $— | $561 | | (Gains) losses on sale of assets and other special charges | $(73) | $(295) | | **Total operating special charges (credits)** | **$(73)** | **$266** | | Nonoperating: | | | | Nonoperating unrealized losses on investments, net | $13 | $8 | | Nonoperating debt extinguishment and modification fees | $20 | $20 | | **Total nonoperating special charges and unrealized losses on investments, net** | **$33** | **$28** | - The **$73 million** net gain in Q3 2025 operating special charges was primarily due to **$75 million** in gains from aircraft sale-leaseback transactions[69](index=69&type=chunk) - A **significant $561 million** special charge was recorded in the nine months ended September 30, 2025, related to a labor contract ratification bonus for flight attendants[70](index=70&type=chunk) [Effective Tax Rate](index=19&type=section&id=Effective%20Tax%20Rate) United's effective tax rate for Q3 2025 was **24.4%**, a slight decrease from **25.0%** in Q3 2024, primarily due to a release of valuation allowance related to realized capital gains Effective Tax Rate Summary | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended Sep 30 | 24.4% | 25.0% | | Nine Months Ended Sep 30 | 22.5% | 24.4% | - The decrease in the effective tax rate is mainly attributed to the release of a valuation allowance linked to realized capital gains[71](index=71&type=chunk) [Additional Company Information](index=7&type=section&id=Additional%20Company%20Information) [Earnings Call and Investor Update](index=7&type=section&id=Earnings%20Call%20and%20Investor%20Update) United Airlines will host a conference call on October 16, 2025, to discuss Q3 2025 financial results and Q4 2025 outlook - Conference call scheduled for October 16, 2025, at 9:30 a.m. CST/10:30 a.m. EST[18](index=18&type=chunk) - Live webcast and replay available at ir.united.com[18](index=18&type=chunk) - Investor Update with additional business outlook and guidance is furnished on Form 8-K and available at ir.united.com[20](index=20&type=chunk) [About United](index=7&type=section&id=About%20United) United Airlines, headquartered in Chicago, operates the most comprehensive global route network among North American carriers and is currently the **largest** airline in the world - United operates the most comprehensive global route network among North American carriers[22](index=22&type=chunk) - Currently the **largest** airline in the world[22](index=22&type=chunk) - Traded on Nasdaq under the symbol "UAL"[22](index=22&type=chunk) [Website and Social Media Information](index=7&type=section&id=Website%20and%20Social%20Media%20Information) United routinely posts important news and information on its corporate and investor relations websites, which serve as primary channels for disclosing key information to investors - Corporate website: www.united.com; Investor relations website: ir.united.com[24](index=24&type=chunk) - Investor relations website is a primary channel for disclosing key information, including financial guidance and SEC filings, to comply with Regulation FD[24](index=24&type=chunk) - Social media channels (e.g., X, LinkedIn) may also be used for company updates and could be deemed material information[24](index=24&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=7&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding future financial results, goals, plans, and strategies, which are subject to inherent risks, assumptions, and uncertainties - Forward-looking statements are based on current expectations and involve inherent risks and uncertainties[25](index=25&type=chunk) - Actual results could differ materially due to factors such as execution risks, fleet strategy changes, competitive industry, reliance on suppliers, economic/political conditions, operational disruptions, and regulatory actions[28](index=28&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement, except as required by law[27](index=27&type=chunk)