United Airlines Reports Second-Quarter Profit, Sees Third-Quarter Positive Inflection in Both Supply and Demand

Core Insights - United Airlines anticipates reduced geopolitical and macroeconomic uncertainty in the second half of 2025, with a demand inflection starting in early July, marked by a 6-point acceleration in booking demand [1][3] - The airline has updated its full-year adjusted diluted earnings per share guidance to a range of $9.00 to $11.00, reflecting the resilience of its business model [3][7] - United Airlines reported a second-quarter profit that exceeded Wall Street expectations, with growth in both earnings and pre-tax margin compared to the first half of 2024 [1][2] Financial Performance - In Q2 2025, United Airlines achieved pre-tax earnings of $1.2 billion, with a pre-tax margin of 8.2%, and adjusted pre-tax earnings of $1.7 billion, with an adjusted pre-tax margin of 11.0% [2][8] - The airline's diluted earnings per share were reported at $2.97, while adjusted diluted earnings per share were $3.87, surpassing the guidance range of $3.25 to $4.25 [2][8] - Total operating revenue for Q2 2025 was $15.2 billion, reflecting a 1.7% increase compared to the same period last year [2][8] Operational Highlights - United Airlines recorded its best consolidated on-time departures and lowest seat cancellation rates for a second quarter since the pandemic [5][6] - The airline's operational performance in June 2025 led to the best on-time performance among major airlines at New York City area airports [5][6] - The airline's capacity increased by 5.9% compared to Q2 2024, with significant growth in both domestic and international operations [8][32] Revenue Sources - Revenue from premium cabins rose by 5.6% year-over-year, while Basic Economy revenue increased by 1.7% [4] - Cargo revenue grew by 3.8% year-over-year, and loyalty revenue saw an increase of 8.7% [4] Strategic Initiatives - United Airlines repaid $6.8 billion in high-cost debt using cash on hand, unencumbering its MileagePlus loyalty program [7] - The airline launched a collaboration with JetBlue to streamline booking and allow customers to use loyalty points across both airlines [14] - United Airlines announced the largest international expansion in its history, adding eight new destinations and several new routes [14][32]