United Airlines issues new 2025 forecast as CEO says 'world is less uncertain'

Core Insights - United Airlines reported second-quarter earnings that exceeded estimates, with a CEO statement indicating a recovery in travel demand after a challenging start to 2025 [1][3]. Financial Performance - United Airlines expects adjusted earnings of $9 to $11 per share for 2025, surpassing the $10 per share anticipated by analysts [2]. - For the second quarter, United's revenue increased by 1.7% year-over-year to $15.24 billion, although it fell short of the $15.35 billion expected by analysts [4][6]. - Net income for the second quarter decreased by 26% to $973 million, equating to $2.97 per share, while adjusted earnings were reported at $1.27 billion or $3.87 per share, slightly above the expected $3.81 [4][6]. Operational Challenges - Operational constraints at Newark Liberty International Airport negatively impacted United's second-quarter pretax margin by 1.2 percentage points, with a forecasted impact of 0.9 percentage points for the third quarter [4]. - The Federal Aviation Administration reduced flights at Newark due to air traffic control staffing shortages, contributing to operational challenges [5]. Market Outlook - CEO Scott Kirby expressed confidence in a strong finish to the year, citing reduced uncertainty compared to the first half of 2025 [3]. - Travel demand, particularly from price-sensitive customers for domestic flights, has been weaker than expected, leading to lower airfares [3].