PART I. FINANCIAL INFORMATION This section provides detailed financial statements, management's analysis, market risk disclosures, and internal control information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents UAL's unaudited condensed consolidated financial statements for Q3 and 9M 2025 and 2024, including notes [UAL Statements of Consolidated Operations](index=3&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Statements%20of%20Consolidated%20Operations) UAL's Q3 2025 net income slightly decreased despite revenue growth; nine-month net income increased, nonoperating expenses improved UAL Statements of Consolidated Operations (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :----------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Total Operating Revenue | $15,225 | $14,843 | $43,673 | $42,368 | | Total Operating Expense | $13,830 | $13,278 | $40,345 | $38,775 | | Operating Income | $1,395 | $1,565 | $3,328 | $3,593 | | Net Income | $949 | $965 | $2,309 | $2,164 | | EPS, Basic | $2.93 | $2.93 | $7.10 | $6.58 | | EPS, Diluted | $2.90 | $2.90 | $7.02 | $6.49 | - Nonoperating expense, net, significantly decreased by **$138 million (49.6%)** for the three months and **$386 million (52.7%)** for the nine months ended September 30, 2025, primarily due to lower interest expense and reduced unrealized losses on investments[9](index=9&type=chunk) [UAL Statements of Consolidated Comprehensive Income (Loss)](index=4&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Statements%20of%20Consolidated%20Comprehensive%20Income%20%28Loss%29) UAL's total comprehensive income slightly decreased in Q3 2025 but increased for the nine months ended September 30, 2025 UAL Statements of Consolidated Comprehensive Income (Loss) (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net Income | $949 | $965 | $2,309 | $2,164 | | Total Other Comprehensive Loss | $(19) | $(12) | $(64) | $(47) | | Total Comprehensive Income, Net | $930 | $953 | $2,245 | $2,117 | [UAL Consolidated Balance Sheets](index=5&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Consolidated%20Balance%20Sheets) UAL's total assets increased to **$76,313 million** at September 30, 2025, driven by operating property and lease assets UAL Consolidated Balance Sheets (Millions) | Asset/Liability Category | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Total Assets | $76,313 | $74,083 | | Total Current Assets | $18,094 | $18,883 | | Total Current Liabilities | $27,119 | $23,314 | | Total Stockholders' Equity | $14,309 | $12,675 | - Advance ticket sales increased significantly to **$9,338 million** at September 30, 2025, from **$7,561 million** at December 31, 2024, indicating strong future revenue bookings[13](index=13&type=chunk) - Long-term debt, finance leases, and other financial liabilities decreased to **$20,807 million** from **$25,203 million**, reflecting debt prepayments and scheduled amortization[13](index=13&type=chunk) [UAL Condensed Statements of Consolidated Cash Flows](index=6&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) UAL's operating cash flow slightly decreased; investing and financing cash usage significantly increased, leading to a net cash decrease UAL Condensed Statements of Consolidated Cash Flows (Millions) | Cash Flow Activity | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Net cash provided by operating activities | $7,145 | $7,221 | | Net cash used in investing activities | $(4,785) | $(936) | | Net cash used in financing activities | $(4,436) | $(3,591) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(2,075) | $2,694 | - Investing activities saw a substantial increase in cash usage, primarily due to purchases of short-term and other investments (**$6,454 million** in 2025 vs. **$4,057 million** in 2024) and a decrease in proceeds from sales of such investments[14](index=14&type=chunk) - Financing activities included **$4.2 billion** in payments for debt, finance leases, and other financial liabilities, and **$610 million** for common stock repurchases during the nine months ended September 30, 2025[14](index=14&type=chunk) [UAL Statement of Consolidated Stockholders' Equity](index=7&type=section&id=United%20Airlines%20Holdings%2C%20Inc.%20Statement%20of%20Consolidated%20Stockholders%27%20Equity) UAL's total stockholders' equity increased to **$14,309 million** at September 30, 2025, driven by net income and stock-settled compensation UAL Statement of Consolidated Stockholders' Equity (Millions) | Equity Component | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :----------------------------- | :---------------------- | :---------------------- | | Additional Capital Invested | $8,878 | $8,980 | | Stock Held in Treasury | $(3,745) | $(3,377) | | Retained Earnings | $9,049 | $6,880 | | Accumulated Other Comprehensive Income | $123 | $188 | | Total Stockholders' Equity | $14,309 | $12,675 | - Retained earnings increased significantly from **$6,880 million** at December 31, 2024, to **$9,049 million** at September 30, 2025, primarily due to net income[15](index=15&type=chunk) - The company repurchased **7.8 million shares** of common stock for **$612 million** during the nine months ended September 30, 2025[15](index=15&type=chunk) [United Airlines, Inc. Statements of Consolidated Operations](index=9&type=section&id=United%20Airlines%2C%20Inc.%20Statements%20of%20Consolidated%20Operations) United Airlines, Inc. reported increased operating revenue for both periods, with Q3 net income slightly down and nine-month net income up United Airlines, Inc. Statements of Consolidated Operations (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :----------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Total Operating Revenue | $15,225 | $14,843 | $43,673 | $42,368 | | Total Operating Expense | $13,829 | $13,278 | $40,344 | $38,774 | | Operating Income | $1,396 | $1,565 | $3,329 | $3,594 | | Net Income | $949 | $965 | $2,310 | $2,165 | [United Airlines, Inc. Statements of Consolidated Comprehensive Income (Loss)](index=10&type=section&id=United%20Airlines%2C%20Inc.%20Statements%20of%20Consolidated%20Comprehensive%20Income%20%28Loss%29) United's total comprehensive income slightly decreased in Q3 2025 but increased for the nine months ended September 30, 2025 United Airlines, Inc. Statements of Consolidated Comprehensive Income (Loss) (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net Income | $949 | $965 | $2,310 | $2,165 | | Total Other Comprehensive Loss | $(19) | $(12) | $(64) | $(47) | | Total Comprehensive Income, Net | $930 | $953 | $2,246 | $2,118 | [United Airlines, Inc. Consolidated Balance Sheets](index=11&type=section&id=United%20Airlines%2C%20Inc.%20Consolidated%20Balance%20Sheets) United's total assets increased to **$76,313 million** at September 30, 2025, consistent with UAL's consolidated balance sheet United Airlines, Inc. Consolidated Balance Sheets (Millions) | Asset/Liability Category | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Total Assets | $76,313 | $74,083 | | Total Current Assets | $18,094 | $18,883 | | Total Current Liabilities | $27,116 | $23,315 | | Total Stockholder's Equity | $14,281 | $12,644 | - A key difference from UAL's balance sheet is the 'Payable to parent' liability, which was **$1,633 million** at September 30, 2025, reflecting intercompany balances[23](index=23&type=chunk) [United Airlines, Inc. Condensed Statements of Consolidated Cash Flows](index=12&type=section&id=United%20Airlines%2C%20Inc.%20Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) United's operating cash flows decreased, while investing and financing cash usage increased, mirroring UAL's consolidated figures United Airlines, Inc. Condensed Statements of Consolidated Cash Flows (Millions) | Cash Flow Activity | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Net cash provided by operating activities | $6,428 | $7,120 | | Net cash used in investing activities | $(4,785) | $(936) | | Net cash used in financing activities | $(3,718) | $(3,490) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(2,075) | $2,694 | [United Airlines, Inc. Statement of Consolidated Stockholder's Equity](index=13&type=section&id=United%20Airlines%2C%20Inc.%20Statement%20of%20Consolidated%20Stockholder%27s%20Equity) United's total stockholder's equity increased to **$14,281 million** at September 30, 2025, driven by net income and capital invested United Airlines, Inc. Statement of Consolidated Stockholder's Equity (Millions) | Equity Component | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :----------------------------- | :---------------------- | :---------------------- | | Additional Capital Invested | $727 | $617 | | Retained Earnings | $11,798 | $9,487 | | Accumulated Other Comprehensive Income | $123 | $188 | | Payable to Related Parties, Net | $1,633 | $2,352 | | Total Stockholder's Equity | $14,281 | $12,644 | - The 'Payable to Related Parties, Net' decreased from **$2,352 million** to **$1,633 million**, indicating a reduction in intercompany liabilities[25](index=25&type=chunk) [Combined Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Combined%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations for UAL and United's financial statements, covering accounting policies, revenue, EPS, and debt [Note 1 - Basis of Presentation](index=14&type=section&id=Note%201%20-%20Basis%20of%20Presentation) UAL is a holding company, with United Airlines, Inc. comprising substantially all operations, managed as a single segment - United Airlines Holdings, Inc. (UAL) is a holding company, and United Airlines, Inc. (United) is its wholly-owned subsidiary, comprising substantially all of UAL's operating revenues, expenses, assets, liabilities, and cash flows[26](index=26&type=chunk) - The company manages its operations as a single segment, with performance assessed and resource allocation decisions made based on Net income[31](index=31&type=chunk) - Quarterly financial data is subject to seasonal fluctuations, with higher travel demand historically reflected in the second and third quarters[29](index=29&type=chunk) [Note 2 - Revenue Recognition](index=15&type=section&id=Note%202%20-%20Revenue%20Recognition) Operating revenue increased across Domestic, Atlantic, Pacific regions, with contributions from ancillary services and frequent flyer programs Operating Revenue by Geographic Region (Millions) | Geographic Region | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Domestic | $8,990 | $8,648 | $25,808 | $25,082 | | Atlantic | $3,486 | $3,432 | $8,755 | $8,542 | | Pacific | $1,568 | $1,531 | $5,009 | $4,721 | | Latin America | $1,181 | $1,232 | $4,100 | $4,023 | | Total | $15,225 | $14,843 | $43,673 | $42,368 | - Ancillary fees within passenger revenue were approximately **$1.3 billion** for the three months and **$3.5 billion** for the nine months ended September 30, 2025, showing an increase from the prior year[34](index=34&type=chunk) - Frequent flyer deferred revenue ending balance increased to **$7,702 million** at September 30, 2025, from **$7,371 million** at September 30, 2024, with **$2.4 billion** recognized in Other operating revenue for the nine months ended September 30, 2025[34](index=34&type=chunk) [Note 3 - Earnings Per Share](index=16&type=section&id=Note%203%20-%20Earnings%20Per%20Share) UAL's basic and diluted EPS remained stable in Q3 2025 but increased for the nine months, with **7.8 million** shares repurchased Earnings Per Share | Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Earnings per share, basic | $2.93 | $2.93 | $7.10 | $6.58 | | Earnings per share, diluted | $2.90 | $2.90 | $7.02 | $6.49 | | Basic weighted-average shares outstanding (millions) | 323.7 | 329.0 | 325.3 | 328.7 | | Diluted weighted-average shares outstanding (millions) | 326.9 | 332.7 | 329.0 | 333.3 | - The company repurchased approximately **7.8 million shares** of UAL common stock for **$612 million** during the nine months ended September 30, 2025, with approximately **$0.8 billion** remaining under the program as of October 9, 2025[39](index=39&type=chunk)[127](index=127&type=chunk) - All outstanding warrants to purchase UAL common stock were exercised in net share settlements by March 2025[38](index=38&type=chunk) [Note 4 - Accumulated Other Comprehensive Income (Loss)](index=17&type=section&id=Note%204%20-%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) UAL's AOCI decreased to **$123 million** at September 30, 2025, primarily due to reclassifications related to pension liabilities Accumulated Other Comprehensive Income (Loss) (Millions) | AOCI Component | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :-------------------------------- | :---------------------- | :---------------------- | | Pension and Other Postretirement Liabilities | $514 | $607 | | Investments and Other | $10 | $0 | | Deferred Taxes | $(401) | $(419) | | Total | $123 | $188 | - Amounts reclassified to earnings from AOCI totaled **$(73) million** for the nine months ended September 30, 2025, primarily from pension and other postretirement liabilities[40](index=40&type=chunk) [Note 5 - Income Taxes](index=17&type=section&id=Note%205%20-%20Income%20Taxes) UAL's effective tax rate decreased for both the three and nine months ended September 30, 2025, due to a valuation allowance release Effective Tax Rate | Period | Effective Tax Rate 2025 | Effective Tax Rate 2024 | | :---------------------- | :---------------------- | :---------------------- | | 3 Months Ended Sep 30 | 24.4% | 25.0% | | 9 Months Ended Sep 30 | 22.5% | 24.4% | - The decrease in the effective tax rate was primarily attributed to a release of valuation allowance related to realized capital gains[42](index=42&type=chunk) [Note 6 - Pension and Other Postretirement Benefit Plans](index=18&type=section&id=Note%206%20-%20Pension%20and%20Other%20Postretirement%20Benefit%20Plans) Net periodic pension benefit cost decreased, while other postretirement benefits showed a net credit, with **$289 million** in pension contributions Benefit Cost Component (Millions) | Benefit Cost Component | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Total Pension Benefits | $23 | $26 | $68 | $81 | | Total Other Postretirement Benefits | $(20) | $(20) | $(61) | $(59) | - The company contributed **$289 million** to its U.S. domestic tax-qualified defined benefit pension plans during the nine months ended September 30, 2025[43](index=43&type=chunk) [Note 7 - Fair Value Measurements, Investments and Notes Receivable](index=18&type=section&id=Note%207%20-%20Fair%20Value%20Measurements%2C%20Investments%20and%20Notes%20Receivable) The company holds various financial assets at fair value, including cash, short-term investments, and equity securities Asset Category (Millions) | Asset Category | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Cash and cash equivalents | $6,730 | $8,769 | | Short-term investments | $6,599 | $5,706 | | Long-term investments: Equity securities | $50 | $71 | - United holds equity investments in Azul Linhas Aéreas Brasileiras S.A., Archer Aviation Inc., Eve Holding, Inc., and Mesa Air Group, Inc.; Azul is undergoing a reorganization, with United potentially providing up to **$300 million** in equity investment[46](index=46&type=chunk)[47](index=47&type=chunk) - Equity method investments include a **19%** minority interest in Republic Airways and a **40%** minority ownership stake in CommuteAir LLC; United also has a **33%** ownership interest in the United Airlines Ventures Sustainable Flight Fund[51](index=51&type=chunk) [Note 8 - Debt](index=20&type=section&id=Note%208%20-%20Debt) UAL had **$3.0 billion** available under its revolving credit facility, with **$21.664 billion** in contractual principal payments for long-term debt - The company had **$3.0 billion** undrawn and available under its revolving credit facility as of September 30, 2025, with no outstanding borrowings[54](index=54&type=chunk) Contractual Principal Payments (Millions) | Year | Contractual Principal Payments (Millions) | | :--- | :---------------------------------------- | | Last Three Months of 2025 | $397 | | 2026 | $4,092 | | 2027 | $2,008 | | 2028 | $1,835 | | 2029 | $2,928 | | After 2029 | $10,403 | | Total | $21,664 | - Mileage Plus Holdings, LLC fully redeemed **$1.52 billion** aggregate principal amount of its outstanding MileagePlus **6.5%** senior secured notes due 2027 on July 7, 2025, fully repaying all indebtedness secured by MileagePlus assets[55](index=55&type=chunk) [Note 9 - Commitments, Contingencies and Guarantees](index=20&type=section&id=Note%209%20-%20Commitments%2C%20Contingencies%20and%20Guarantees) United has **$54.3 billion** in aircraft commitments, guarantees **$2.9 billion** in bonds, and incurred a **$561 million** special charge Purchase Commitments (Billions) | Commitment Period | Purchase Commitments (Billions) | | :------------------ | :------------------------------ | | Last Three Months of 2025 | $4.6 | | 2026 | $7.8 | | 2027 | $5.1 | | 2028 | $6.4 | | 2029 | $8.1 | | After 2029 | $22.4 | | Total | $54.3 | - United guarantees approximately **$2.9 billion** in aggregate principal amount of tax-exempt special facility revenue bonds, due between 2027 and 2041[58](index=58&type=chunk) - A tentative agreement with the Association of Flight Attendants, which included a one-time ratification payment, was voted against in July 2025, resulting in a **$561 million** special charge in the second quarter of 2025[61](index=61&type=chunk) [Note 10 - Special Charges (Credits)](index=21&type=section&id=Note%2010%20-%20Special%20Charges) Special charges for 9M 2025 included a **$561 million** labor contract bonus and **$295 million** net gains on asset sales Special Charge (Credit) Category (Millions) | Special Charge (Credit) Category | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :--------------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Labor contract ratification bonuses | $0 | $0 | $561 | $0 | | (Gains) losses on sale of assets and other special charges | $(73) | $(5) | $(295) | $44 | | Nonoperating debt extinguishment and modification fees | $20 | $75 | $20 | $110 | - Net gains on sale of assets and other special charges were primarily comprised of **$75 million** and **$336 million** of gains on various aircraft sale-leaseback transactions for the three and nine months ended September 30, 2025, respectively[62](index=62&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes UAL's financial performance, condition, and cash flows, highlighting economic factors, governmental actions, and liquidity [Executive Summary](index=22&type=section&id=Executive%20Summary) UAL operates a global route network facing intense competition, macroeconomic challenges, and governmental actions impacting operations - UAL and United operate a comprehensive route network among North American carriers, serving major global markets directly or through the Star Alliance[67](index=67&type=chunk) - Key economic and market factors impacting the company include intense competition, operational challenges, aircraft delivery delays, rising inflation, labor constraints, volatile fuel prices, and interest rate changes[68](index=68&type=chunk) - Governmental actions, such as airspace closures, aircraft certification delays, increased FAA oversight, and proposed DOT regulations, pose significant risks and potential cost increases[69](index=69&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) UAL's Q3 2025 net income slightly decreased despite revenue growth, while nine-month net income increased due to revenue growth and lower fuel costs Results of Operations - 3 Months Ended Sep 30 (Millions) | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Change | | :----------------------- | :------------------------------------ | :------------------------------------ | :------- | | Operating revenue | $15,225 | $14,843 | 2.6 | | Operating expense | $13,830 | $13,278 | 4.2 | | Operating income | $1,395 | $1,565 | (10.8) | | Net income | $949 | $965 | (1.7) | Results of Operations - 9 Months Ended Sep 30 (Millions) | Metric | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | % Change | | :----------------------- | :------------------------------------ | :------------------------------------ | :------- | | Operating revenue | $43,673 | $42,368 | 3.1 | | Operating expense | $40,345 | $38,775 | 4.1 | | Operating income | $3,328 | $3,593 | (7.4) | | Net income | $2,309 | $2,164 | 6.7 | - Passenger revenue increased by **1.9%** in Q3 2025 and **2.5%** in the first nine months of 2025, driven by increased capacity (ASMs up **7.2%** in Q3, **6.0%** in 9M) and passenger volume (up **6.2%** in Q3, **4.7%** in 9M), partially offset by a decrease in yield[74](index=74&type=chunk)[87](index=87&type=chunk) - Salaries and related costs increased by **5.4%** in Q3 and **6.2%** in 9M, primarily due to increased flying activity, a **5.1%** increase in headcount, and higher pay rates[77](index=77&type=chunk)[89](index=89&type=chunk) - Aircraft fuel expense decreased by **6.7%** in the first nine months of 2025, mainly due to a lower average price per gallon of fuel, despite increased consumption[90](index=90&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) UAL had **$13.3 billion** in unrestricted cash and investments, a **$3.0 billion** undrawn credit facility, and **$31.3 billion** in fixed obligations Unrestricted Cash, Cash Equivalents and Short-Term Investments (Millions) | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--------------------------------------- | :---------------------- | :---------------------- | | Unrestricted cash, cash equivalents and short-term investments | $13,300 | $14,500 | - The company has a **$3.0 billion** revolving credit facility, which was undrawn as of September 30, 2025[102](index=102&type=chunk) - Total fixed obligations, including debt, leases, and other financial liabilities, amounted to approximately **$31.3 billion** as of September 30, 2025, with **$5.2 billion** due within the next 12 months[104](index=104&type=chunk) Aircraft Firm Commitments | Aircraft Type | Number of Firm Commitments | | :-------------- | :------------------------- | | 787 | 142 | | 737 MAX 9 | 110 | | 737 MAX 10 | 167 | | A321neo | 127 | | A321XLR | 50 | | A350 | 45 | [Sources and Uses of Cash](index=30&type=section&id=Sources%20and%20Uses%20of%20Cash) Operating cash flow slightly decreased, while investing and financing cash usage significantly increased, resulting in a net cash decrease Cash Flow Activity (Millions) | Cash Flow Activity | 9 Months Ended Sep 30, 2025 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Operating activities | $7,145 | $7,221 | | Investing activities | $(4,785) | $(936) | | Financing activities | $(4,436) | $(3,591) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(2,075) | $2,694 | - Cash flows used in investing activities increased by **$3.8 billion**, primarily due to an increase in the purchase of short-term and other investments and a decrease in proceeds from their sale[109](index=109&type=chunk) - Financing activities included **$4.2 billion** in debt, finance lease, and other financial liability principal payments, and **$612 million** in common stock repurchases[109](index=109&type=chunk)[110](index=110&type=chunk) [Critical Accounting Policies](index=30&type=section&id=Critical%20Accounting%20Policies) No material changes to critical accounting policies were reported for the current interim period, referring to the 2024 Form 10-K for details - No material changes to critical accounting policies were reported for the current interim period, referring to the 2024 Form 10-K for details[114](index=114&type=chunk) [Forward-Looking Information](index=31&type=section&id=Forward-Looking%20Information) This section outlines forward-looking statements and emphasizes that actual results may differ materially due to various risks and uncertainties - Forward-looking statements cover financial position, results of operations, capital allocation, market position, fleet plan strategy, fares, booking trends, product development, and business strategy[115](index=115&type=chunk) - Actual results could differ materially due to numerous factors, including execution risks of strategic plans, changes in fleet and network strategy, failure to manage acquisitions, adverse publicity, intense competition, reliance on limited suppliers, disruptions to regional networks, unfavorable economic/political conditions, reliance on third-party service providers, airport disruptions, geopolitical conflicts, technology reliance, cybersecurity risks, labor disputes, regulatory compliance costs, high/volatile fuel prices, financial leverage, and limitations on tax attributes[117](index=117&type=chunk)[118](index=118&type=chunk) - The company does not undertake any obligation to publicly update or revise any forward-looking statement, except as required by applicable law or regulation[116](index=116&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk were reported compared to the Company's 2024 Annual Report on Form 10-K - No material changes in market risk were reported compared to the 2024 Form 10-K[121](index=121&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) UAL and United's disclosure controls and procedures were effective as of September 30, 2025, with no material changes in internal control - UAL's and United's disclosure controls and procedures were evaluated and deemed effective as of September 30, 2025[122](index=122&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended September 30, 2025[123](index=123&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, and exhibits for the reporting period [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the description of legal proceedings provided in the 2024 Form 10-K, indicating no new material information - For legal proceedings, the report refers to the information provided in the 2024 Form 10-K[124](index=124&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the risk factors discussed in the 2024 Form 10-K, implying no new or materially changed risk factors - For risk factors, the report refers to the information provided in the 2024 Form 10-K[125](index=125&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **221,694 shares** of common stock during Q3 2025, with **$0.8 billion** remaining under the repurchase program Unregistered Sales of Equity Securities and Use of Proceeds (Millions) | Period | Total number of shares (or units) purchased | Average price paid per share (or unit) | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (in millions) | | :--------------- | :---------------------------------------- | :------------------------------------- | :---------------------------------------------------------------------------------------------------------------------------------- | | July 1-31 | 168,338 | $84.69 | $815 | | August 1-31 | 52,356 | $87.27 | $810 | | September 1-30 | 1,000 | $94.96 | $810 | | Total | 221,694 | | | - As of October 9, 2025, approximately **$0.8 billion** remains available for repurchase under the **$1.5 billion** share repurchase program authorized in October 2024[127](index=127&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) CEO J. Scott Kirby adopted a Rule 10b5-1 trading arrangement; no other directors or officers reported similar arrangements - CEO J. Scott Kirby adopted a Rule 10b5-1 trading arrangement on August 29, 2025, to sell up to **220,000 shares** and gift **20,000 shares** of common stock by December 31, 2026[130](index=130&type=chunk) - No other directors or officers reported adopting, modifying, or terminating Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[131](index=131&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits including an aircraft purchase agreement amendment, SOX certifications, and Inline XBRL financial data - Exhibits include Amendment No. 8 to the Amended and Restated A350-900 Purchase Agreement with Airbus S.A.S[134](index=134&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer for both UAL and United are included, pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[134](index=134&type=chunk) - The financial statements and cover page data are provided in Inline XBRL format[134](index=134&type=chunk)

Core 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]

Core Insights - United Airlines is positioning itself as a premium airline, contrasting its services with those of Delta Air Lines and American Airlines, particularly focusing on the quality of its airport lounges and in-flight entertainment options [1][5][12] United Airlines - United Airlines has installed seatback screens on over 146,000 seats across 765 airplanes, emphasizing this as a key differentiator from American Airlines, which has not adopted this feature for most of its domestic fleet [2][3] - The airline's premium cabin revenue increased by approximately 6% year-over-year in the third quarter, although this growth was less than Delta's 9% [5] - United's signature interior conversion is currently at 64%, with an investment exceeding $1.6 billion [3] Delta Air Lines - Delta has acknowledged issues with overcrowding in its Sky Clubs and has implemented changes, such as raising annual lounge pass prices and restricting access for basic economy passengers [6][12] - The airline is introducing "Delta One" lounges, which will offer a more exclusive experience, with only four locations planned by 2025 [7] American Airlines - American Airlines continues to use tablet holders instead of seatback screens on most domestic flights, focusing on allowing passengers to use their own devices for entertainment [12][13] - The airline claims that over 90% of its customers prefer using their own devices, and it plans to offer free WiFi to all AAdvantage loyalty members starting next year [13] Market Performance - United Airlines' stock fell over 7% after reporting earnings that exceeded expectations but had revenue figures below analyst forecasts, yet it remains up more than 34% over the past year [14][15] - Delta's stock has increased around 6.5% over the past year, while American Airlines is down nearly 8.6% as it prepares to report its earnings [15][16]

United Airlines Scott Kirby warned on Thursday that an extended government shutdown risks taking a toll on airline bookings as well as flight operations. ...

Core Insights - United Airlines CEO Scott Kirby indicated that the ongoing federal government shutdown could negatively affect bookings if it persists [1][2] - Despite the shutdown, essential federal employees, including Transportation Security Administration officers and air traffic controllers, are still required to work without pay [1] - Kirby noted that the shutdown has not yet impacted the airline's business, as initial expectations were that it would be resolved quickly [2] Impact on Business - Kirby mentioned that confidence in the government's ability to resolve the shutdown is waning, which could lead to a decline in bookings over time [2] - There is no specific timeline for when the airline might start to see an impact, but the risk to the U.S. economy increases with each passing day of the shutdown [2]

Financial Data and Key Metrics Changes - United Airlines reported a 2.6% increase in top-line revenues to $15.2 billion in Q3 2025, with a 7.2% increase in capacity [23] - The earnings per share for Q3 was $2.78, exceeding the guidance range of $2.25 to $2.75 and Wall Street expectations of $2.68 [44] - The pretax margin was 8%, with a projected EPS for Q4 between $3.00 and $3.50, positioning the company to be the only airline to grow earnings in 2025 [45][46] Business Line Data and Key Metrics Changes - Domestic PRASM decreased by 3.3% in Q3 on a 6.6% increase in capacity, while international PRASM fell by 7.1% [23][24] - Premium cabin revenues increased by 6% year-over-year, outperforming the main cabin by five points [24] - MileagePlus loyalty revenues rose over 9%, with whole brand remuneration up 15% year-over-year [29] Market Data and Key Metrics Changes - The third quarter marked the busiest in United's history, with over 48 million customers flown and the lowest cancellation rate for any third quarter [16][17] - All seven hubs were profitable in Q3, despite challenges in the broader industry [26] - The company expects Q4 to have the highest absolute RASM of any quarter in 2025, with international RASMs anticipated to outperform domestic [25] Company Strategy and Development Direction - United Airlines is focused on transforming into a brand-loyal airline, investing over $1 billion annually in customer product enhancements [9][39] - The company aims to achieve double-digit margins by driving efficiencies through technology and optimizing capacity in profitable markets [14][15] - The strategy includes a shift towards premium leisure demand, which has been growing and is expected to continue to outperform traditional corporate yields [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the brand-loyal customer base, which has shown stability during economic downturns [45][46] - The company anticipates continued margin expansion, driven by a focus on brand loyalty and operational efficiencies [89] - Management highlighted the importance of technology investments in improving operational performance and customer experience [40][41] Other Important Information - United Airlines is planning to hire over 2,000 pilots and 3,200 flight attendants in 2026, reflecting growth in operations [19] - The company has eliminated all expensive financing from its balance sheet, achieving a credit rating upgrade to BB+ from S&P [48] - The introduction of Starlink Wi-Fi is expected to enhance the in-flight experience significantly [21] Q&A Session Summary Question: Impact of main cabin supply changes on margins - Management discussed the historical view of the airline industry as a commodity and emphasized the shift towards brand loyalty, which is expected to stabilize margins despite changes in main cabin supply [54][56] Question: Update on fourth quarter costs and CASM - Management indicated that Q4 costs would trend up from Q3 levels, with benefits from maintenance and labor agreements contributing to cost management [64][66] Question: Premium leisure yields versus corporate yields - Management confirmed that premium leisure yields have been growing and often exceed traditional corporate yields, particularly in domestic markets [68][70] Question: Air traffic liability and its implications - The slight decline in air traffic liability was attributed to strong bookings and positive momentum heading into Q4, indicating a favorable outlook [76][78] Question: Latin America performance and future strategy - Management acknowledged disappointing results in Latin America but expects significant sequential improvement in Q4, focusing on core markets and removing underperforming routes [80][82]

Financial Data and Key Metrics Changes - United Airlines reported a 2.6% increase in top-line revenues to $15.2 billion for Q3 2025, with a 7.2% increase in capacity [17] - The earnings per share for Q3 was $2.78, exceeding the guidance range of $2.25 to $2.75 and Wall Street expectations of $2.68 [32] - The pre-tax margin was reported at 8%, with a potential increase absent disruptions earlier in the year [32] Business Line Data and Key Metrics Changes - Premium cabin revenues increased by 6% year-over-year, outperforming main cabin revenues [17] - Domestic TRASM decreased by 3.3% on a 6.6% increase in capacity, while international TRASM fell by 7.1% [17] - The loyalty program, MileagePlus, saw total loyalty revenues rise over 9%, with co-brand remuneration up 15% year-over-year [21][22] Market Data and Key Metrics Changes - The third quarter marked the busiest summer in United's history, with over 48 million customers flown [12] - All seven hubs were profitable in Q3, despite challenges in the broader market [19] - The company expects Q4 to have the highest absolute TRASM of any quarter in 2025, with international TRASMs anticipated to outperform domestic [18] Company Strategy and Development Direction - United Airlines is focused on winning brand-loyal customers through over $1 billion in annual investments in customer product enhancements [5][8] - The company aims to achieve double-digit margins by driving efficiencies and focusing on profitable capacity deployment [10][11] - The strategy includes de-commoditizing air travel and enhancing customer experience through technology and service improvements [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the brand-loyal strategy, even amid macroeconomic challenges [4] - The company anticipates continued growth in earnings for the full year, with a focus on maintaining operational flexibility [12][33] - Future expectations include hiring over 5,200 new employees in 2026, including pilots and flight attendants [14] Other Important Information - United Airlines has eliminated all expensive financing from its balance sheet, achieving an upgrade from S&P to BB+ [34] - The company expects to generate over $3 billion in free cash flow this year, with a focus on maintaining a strong balance sheet [34] - The introduction of Starlink-equipped aircraft is expected to enhance in-flight connectivity and customer experience [16] Q&A Session Summary Question: Impact of main cabin supply changes on margins - Management discussed the historical view of the airline industry as a commodity and emphasized the importance of brand loyalty in driving margins [40][41] Question: Premium leisure yields versus corporate yields - Management acknowledged the growth of premium leisure yields, noting that they often exceed traditional corporate yields in the domestic market [50][51] Question: Air traffic liability decline implications - The decline in air traffic liability was attributed to strong bookings and positive momentum heading into Q4 [57][58] Question: Latin America performance and future strategy - Management expressed disappointment in Latin America results but expects significant sequential improvement in Q4 [60][61] Question: Q4 unit revenue trajectory - Management indicated that Q4 is setting up nicely with significant sequential gains in RASM, particularly in international markets [62][64]

Core Insights - Proactive provides fast, accessible, and informative business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, mining, oil and gas, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - United Airlines Inc. will provide Starlink's WiFi service on its mainline flights after receiving FAA approval for Boeing 737 aircraft [1] - The service is branded as "lightning-fast" and is currently available on the airline's regional network, with plans to expand to more aircraft [2] - MileagePlus members will have access to the WiFi service for free [2] Industry Developments - Starlink is in discussions with several major Middle Eastern airlines, including Emirates and Gulf Air, to offer its services [3] - SpaceX, Starlink's parent company, has signed a $17 billion deal to acquire spectrum licenses from EchoStar Corp, enhancing its competitive position against traditional telecom operators [3] - SpaceX is also collaborating with chipmakers to develop Starlink-enabled smartphones, as hinted by Elon Musk [4] Company Performance - United Airlines shows strong performance metrics in Momentum, Value, and Growth, with a favorable price trend across short, medium, and long-term periods [4]

Market Overview - Major U.S. indices ended mixed, with the Dow Jones Industrial Average slipping 0.04% to 46,253.31, the S&P 500 adding 0.4% to 6,671.06, and the Nasdaq climbing nearly 0.7% to 22,670.08 [1] Hims & Hers Health Inc - Hims & Hers Health shares surged 16.18%, closing at $62.76, with an intraday high of $65.30 and a low of $54.44, within a 52-week range of $18.32 to $72.98 [1] - The rise followed the company's announcement of a new menopause and perimenopause care specialty on its Hers platform, offering personalized treatment plans [2] Salesforce Inc - Salesforce shares fell 1.33%, ending at $236.58, fluctuating between $241.32 and $235.90, with a 52-week range of $226.48 to $369 [3] - The stock drew attention following the announcement of a new partnership with OpenAI, planning to integrate its Agentforce 360 platform with OpenAI's models to enhance productivity and customer experiences [4] - In after-hours trading, the stock rose almost 3.6% to $245 [3] Omeros Corporation - Omeros stock skyrocketed 154.15%, closing at $10.42, with an intraday high of $12.10 and a low of $9.19, within a 52-week range of $2.95 to $13.60 [5] - The dramatic increase followed a $2.1 billion deal with Novo Nordisk for the development and commercialization of a rare disease drug [5] United Airlines Holdings - United Airlines shares rose 0.87%, closing at $104.05, trading between $104.53 and $102.73, with a 52-week range of $52 to $116 [6] - The stock gained traction after reporting better-than-expected third-quarter earnings, with adjusted earnings per share at $2.90 and guidance for diluted earnings per share in the range of $3.00 to $3.50 [6] Sea Limited - Sea Limited shares dropped 9.56%, finishing at $163.42, with an intraday high of $184.96 and a low of $162.02, within a 52-week range of $92.50 to $199.30 [7] - The company recently released its second-quarter earnings, indicating a revenue increase of 38.2% year-over-year to $5.26 billion, surpassing the analyst consensus estimate of $4.98 billion [7]