United Airlines Q4 and Full Year EPS Beat Wall Street Expectations, With Full Year EPS Up Year-Over-Year

Core Insights - United Airlines reported strong financial results for FY25, with diluted earnings per share of $10.20, an 8% increase year-over-year, and adjusted diluted earnings per share of $10.62, marking it as the only U.S. airline expected to grow adjusted EPS for FY25 [1][2] - The airline achieved a record revenue of $15.4 billion in Q4, the highest quarterly revenue in its history, and flew a record 181 million passengers throughout the year [1][3] Financial Performance - Full-year pre-tax earnings reached $4.3 billion, with a pre-tax margin of 7.3%, and adjusted pre-tax earnings of $4.6 billion, with an adjusted pre-tax margin of 7.8% [2][10] - Total operating revenue for FY25 grew 3.5% year-over-year to $59.1 billion, the highest in United's history [2][10] - Operating cash flow was $8.4 billion, and free cash flow was $2.7 billion in 2025, with expectations to generate a similar level in 2026 [2][10] Operational Highlights - United operated the largest mainline schedule in its history, averaging over 496,000 passengers daily and achieving the lowest seat cancellation rate in company history [3][11] - The airline's premium revenue increased by 9% in Q4 and 11% for the full year, while loyalty revenue rose by 10% in Q4 and 9% for the full year [4][11] - United's Connection Saver program saved over one million potential missed connections in 2025, a 42% increase from 2024 [3][16] Customer Experience and Brand Loyalty - United's customer-first policies during the government shutdown led to the highest-ever monthly Net Promoter Score (NPS) in November [5][16] - The airline's investments in new aircraft and technology have contributed to winning brand-loyal customers, with a record-high NPS achieved in Q4 [3][16] - United's app enhancements and new features have led to 85% of customers using the app on their travel day, improving customer satisfaction [16][18] Future Outlook - In 2026, United plans to take delivery of over 100 narrowbody aircraft and approximately 20 Boeing 787 aircraft, aiming to expand its network profitably [8][17] - The airline is also making significant upgrades at its Washington Dulles and Houston hubs to enhance customer experience [8][17]