United(US:UAL) ZACKS·2025-10-16 19:31Core Insights - United Airlines Holdings, Inc. (UAL) reported mixed third-quarter 2025 results, with earnings surpassing estimates but revenues falling short [1][10] - Adjusted earnings per share (EPS) for Q3 2025 was $2.78, exceeding the Zacks Consensus Estimate of $2.64, but down 16.5% year-over-year [1][10] - Operating revenues reached $15.2 billion, missing the consensus estimate of $15.3 billion, but reflecting a 2.6% year-over-year increase [2][10] Revenue Performance - Passenger revenues, which constituted 90.7% of total revenues, increased by 1.9% year-over-year to $13.8 billion [2] - Cargo revenues grew by 3.2% year-over-year to $431 million, while revenues from other sources rose by 13.2% to $979 million [2][3] - Premium cabin revenues increased by 6% year-over-year, Basic Economy revenues rose by 4%, and loyalty revenues grew by 9% [3] Capacity and Traffic - Airline traffic, measured in revenue passenger miles, grew by 6.1%, while capacity, measured in available seat miles, expanded by 7.2% [5] - The consolidated load factor decreased by 0.7 percentage points year-over-year to 83.3% [5] Cost and Expenses - Operating expenses increased by 4.2% year-over-year to $13.8 billion [7] - Consolidated unit cost per available seat mile, excluding certain expenses, decreased by 0.9% year-over-year to 12.15 cents [7] Cash Flow and Share Repurchase - UAL generated $1.21 billion in free cash flow during the September quarter [8] - The company repurchased $19 million of its shares in Q3 2025 [8] Future Outlook - For Q4 2025, UAL anticipates adjusted EPS between $3.00 and $3.50, with the Zacks Consensus Estimate at $2.67 [9][10] - The company expects Q4 2025 to achieve the highest total operating revenue for a single quarter in its history [3]