United(UAL) - 2025 Q1 - Quarterly Results

Financial Performance - United Airlines reported record revenue of $13.2 billion in Q1 2025, a 5.4$391 million[4][12]. - Total operating revenue for Q1 2025 was $13,213 million, a 5.4$12,539 million in Q1 2024[38]. - Operating income for Q1 2025 was $607 million, significantly up from$99 million in Q1 2024[38]. - Net income for Q1 2025 reached $387 million, a substantial improvement from a net loss of$124 million in Q1 2024[38]. - Earnings per share (diluted) for Q1 2025 was $1.16, compared to a loss of$0.38 per share in Q1 2024[38]. - Adjusted net income (Non-GAAP) for Q1 2025 was $302 million, compared to a loss of$50 million in Q1 2024, indicating a strong recovery in profitability[61]. - The operating margin improved to 4.6% in Q1 2025, up from 0.8% in Q1 2024, showcasing enhanced operational performance[61]. - Adjusted EBITDA for the three months ended March 31, 2025, was $1,263 million, up from$845 million in 2024, representing a margin increase to 9.6% from 6.7%[56]. Revenue Breakdown - Passenger revenue increased by 4.8% to $11,860 million compared to$11,313 million in the same period last year[38]. - Cargo revenue rose by 9.7% to $429 million, compared to$391 million in Q1 2024[38]. - The company reported a 4.8% increase in domestic passenger revenue, totaling $7,182 million[39]. - International passenger revenue grew by 6.4$4,678 million, with significant contributions from Europe and Latin America[39]. - Premium cabin revenue rose by 9.2%, while business revenue and Basic Economy revenue increased by 7.4% and 7.6% year-over-year, respectively[4]. Cash Flow and Liquidity - Operating cash flow generated in Q1 2025 was $3.7 billion, with free cash flow exceeding$2 billion for the same period[2][12]. - Free cash flow for the three months ended March 31, 2025, was $2,312 million, compared to$1,542 million in 2024, reflecting a significant increase[57]. - Cash and cash equivalents at the end of Q1 2025 were $9,370 million, an increase from$8,769 million at the end of 2024, indicating improved liquidity[63]. - Net cash provided by operating activities increased to $3,710 million in Q1 2025, compared to$2,848 million in Q1 2024, demonstrating robust cash generation capabilities[65]. Cost and Expenses - Operating expenses increased by 1.3% to $12,605 million, up from$12,440 million in Q1 2024[38]. - The airline's average fuel price per gallon was $2.53 in Q1 2025[12]. - The company experienced a decrease in aircraft fuel costs by 8.6$2,701 million compared to $2,954 million in Q1 2024[38]. - Average aircraft fuel price per gallon decreased by 12.2$2.53 from $2.88 in the prior year[1]. Shareholder Returns - United repurchased approximately$451 million of shares year-to-date as of April 10, 2025[12]. Operational Metrics - United Airlines carried an average of over 450,000 customers per day in Q1 2025, the largest schedule by available seat miles in its history[8][12]. - Passenger load factor decreased by 0.9 percentage points to 79.2% from 80.1% in the previous year[1]. - Employee headcount increased by 4.5% to 109.2 thousand from 104.5 thousand year-over-year[1]. - Aircraft in fleet at the end of the period increased by 5.6% to 1,442 from 1,366 in the previous year[1]. - Cargo revenue ton miles increased by 4.3% to 889 million from 852 million in the previous year[1]. Future Outlook - The company expects resilient earnings in Q2 and full-year 2025 despite a challenging macroeconomic environment[2][6]. - United plans to remove 4 percentage points of scheduled domestic capacity starting in Q3 2025[2][6]. Customer Satisfaction - The airline achieved its highest customer satisfaction scores for a first quarter, with a 10% increase year-over-year[12]. Tax and Debt - The effective tax rate decreased to 19.0% in Q1 2025 from 24.4% in Q1 2024, primarily due to increased excess tax benefits related to stock-based compensation[68]. - Adjusted total debt decreased by $2,277 million to$34,177 million as of March 31, 2025, from $36,454 million in 2024[58]. - Adjusted net debt reduced by$3,615 million to $18,847 million compared to$22,462 million in the previous year[58]. Special Charges - The company recorded special charges of $108 million in Q1 2025, primarily related to gains on aircraft sale-leaseback transactions, compared to$13 million in Q1 2024[67].