United(US:UAL)2025-04-15 20:00Financial Performance - United Airlines reported record revenue of $13.2 billion in Q1 2025, a 5.4% increase compared to Q1 2024[4]. - The company achieved a pre-tax margin of 3.6% in Q1 2025, up 4.9 points year-over-year, and adjusted pre-tax earnings of $391 million[4][12]. - Total operating revenue for Q1 2025 was $13,213 million, a 5.4% increase from $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% to $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%, totaling $2,701 million compared to $2,954 million in Q1 2024[38]. - Average aircraft fuel price per gallon decreased by 12.2% to $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].