Connectivity Expansion - Starlink Wi-Fi is now available on United mainline aircraft [1] - Starlink Wi-Fi is already available on more than 50% of United's regional fleet [1] - Starlink Wi-Fi is being rolled out on more planes every day [1] Customer Benefits - Wi-Fi is free for MileagePlus members [1]

Core Insights - United Airlines reported $15.23 billion in revenue for Q3 2025, a year-over-year increase of 2.6%, with an EPS of $2.78 compared to $3.33 a year ago, indicating a decline in earnings per share [1] - The revenue fell slightly short of the Zacks Consensus Estimate of $15.3 billion, resulting in a surprise of -0.51%, while the EPS exceeded expectations by 5.3% [1] Financial Performance Metrics - Passenger load factor was 84.4%, below the average estimate of 85.1% [4] - Available seat miles (ASMs) were reported at 87.42 billion, slightly above the average estimate of 86.65 billion [4] - Passenger revenue per available seat mile (PRASM) was 15.8 cents, lower than the average estimate of 16.09 cents [4] - Revenue passenger miles (RPMs) reached 73.77 billion, slightly above the estimated 73.57 billion [4] - Total revenue per available seat mile (TRASM) was 17.42 cents, below the average estimate of 17.68 cents [4] - Average aircraft fuel price per gallon was $2.43, higher than the estimated $2.34 [4] - CASM-ex (cost per available seat mile excluding certain charges) was 12.15 cents, better than the estimated 12.48 cents [4] - Average yield per RPM was 18.73 cents, below the average estimate of 18.98 cents [4] - Fuel gallons consumed totaled 1,233.00 million gallons, lower than the estimated 1,282.33 million gallons [4] - Operating revenue from passenger services was $13.82 billion, slightly below the average estimate of $13.92 billion, reflecting a year-over-year increase of 1.9% [4] - Other operating revenue was $979 million, exceeding the average estimate of $935.02 million, with a year-over-year change of 13.2% [4] - Cargo revenue was $431 million, slightly below the estimated $445.93 million, representing a year-over-year increase of 3.4% [4] Stock Performance - United Airlines shares returned -1% over the past month, while the Zacks S&P 500 composite increased by 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - United Airlines reported quarterly earnings of $2.78 per share, exceeding the Zacks Consensus Estimate of $2.64 per share, but down from $3.33 per share a year ago, indicating an earnings surprise of +5.30% [1][2] - The company generated revenues of $15.23 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.51%, and showing an increase from $14.84 billion year-over-year [2] - United Airlines has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Financial Performance - The earnings surprise of +5.30% reflects a positive trend in earnings performance, while the revenue miss indicates potential challenges in revenue growth [1][2] - The current consensus EPS estimate for the upcoming quarter is $2.67, with expected revenues of $15.08 billion, and for the current fiscal year, the EPS estimate is $10.15 on revenues of $58.83 billion [7] Market Position - United Airlines shares have increased by approximately 6.2% since the beginning of the year, underperforming compared to the S&P 500's gain of 13% [3] - The Zacks Rank for United Airlines is currently 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Industry Context - The Transportation - Airline industry, to which United belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating a challenging environment for the sector [8] - The performance of United Airlines may be influenced by the overall outlook for the airline industry, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8]

United Airlines expects strong travel demand leading to record revenue in the holiday quarter, but the stock fell after third-quarter revenue missed expectations, again. ...

Core Insights - U.S. equities showed mixed performance on October 15, 2025, influenced by corporate earnings reports and U.S.-China trade tensions [1] Major Index Performance - The Dow Jones Industrial Average (DJIA) rose 0.4% or 202.88 points to close at 46,270.46, driven by strong financial sector earnings, despite significant intraday volatility [2] - The S&P 500 (SPX) also increased by 0.4% to 6,671.06 points, reflecting mixed signals and fluctuations throughout the day [3] - The Nasdaq Composite (IXIC) was the best performer, climbing 0.7% to 22,670.08, supported by optimism in the semiconductor and AI sectors, although it faced extreme volatility [4] Upcoming Market Events - Investors are awaiting the Consumer Price Index (CPI) for September, the Federal Reserve's Beige Book report, and the FOMC meeting minutes, which may influence future trading sessions [5] Major Stock News and Corporate Announcements - Bank of America (BAC) shares rose between 3.9% and 4.9% after reporting Q3 EPS of $1.06, exceeding estimates, while Morgan Stanley (MS) surged between 5% and 7.2% with a Q3 EPS of $2.80, driven by strong dealmaking [7] - Nvidia (NVDA) gained 1.2% to 2.5% due to robust demand for AI chips, and Advanced Micro Devices (AMD) soared close to 10% following a deal with Oracle [8] - A consortium including BlackRock, Microsoft, and Nvidia announced a $40 billion acquisition of Aligned Data Centers, enhancing cloud and AI infrastructure [9] Geopolitical Factors - U.S.-China trade tensions, including potential tariffs and embargoes, contributed to market volatility and increased gold prices, which reached over $4,200 per ounce, up nearly 60% for the year [12]

Core Insights - The Chicago-based carrier reported a 4.3% decrease in revenue per available seat mile for the third quarter, but anticipates a significant improvement in the fourth quarter due to the busy holiday travel season [1] Financial Performance - Revenue per available seat mile decreased by 4.3% in Q3 [1] - The company expects meaningful improvement in Q4 [1] Market Outlook - The upcoming fourth quarter is expected to benefit from increased travel during the holiday season [1]

Airlines earnings are out. Phil Leau has them. Phil >> Morgan, you are preient.They were a strong beat. United on the third quarter beating the street by earning 278 a share, well above the street expectation of 263. Revenue was a slight miss, but not by much.15.22% billion. The street was expecting 15.32% billion. The numbers within the numbers for the quarter, you've got revenue per seat mile down 4.3%, cost per seat mile down 0.9% and a pre-tax margin of 8%.And then there's the metrics that tell people w ...

Core Insights - United Airlines has forecasted a higher-than-expected profit for the fourth quarter, driven by strong demand for premium travel and enhanced pricing power [1] Group 1: Financial Performance - The company anticipates robust profitability in the upcoming quarter, indicating a positive outlook for its financial performance [1] Group 2: Market Demand - There is a notable increase in demand for premium travel, which is contributing significantly to the company's revenue growth [1] Group 3: Pricing Strategy - Improved pricing power is highlighted as a key factor in the company's ability to forecast higher profits, suggesting effective pricing strategies in place [1]

A United Airlines Boeing 737-MAX 8 aircraft departs at San Diego International Airport en route to New York on Aug. 24, 2024.United Airlines on Wednesday forecast higher-than-expected earnings for the fourth quarter after a rocky start to 2025.The carrier expects to earn between $3 and $3.50 a share for the last three months of the year, compared with analysts' estimate of $2.86 a share.United has been expanding its flying capacity, while its rivals have scaled back some of their growth plans after a glut o ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 2025 Performance Highlights](index=1&type=section&id=Q3%202025%20Performance%20Highlights) United Airlines reported Q3 2025 profit and Q4 outlook exceeding Wall Street expectations, driven by brand-loyal customers and operational excellence Q3 2025 Key Financial Metrics | Metric | Value | YoY Change | Guidance | | :-------------------------------- | :---------- | :--------- | :---------------- | | Diluted EPS | $2.90 | - | - | | Adjusted Diluted EPS | $2.78 | - | $2.25 to $2.75 (above top end) | | Pre-tax earnings | $1.3 billion | - | - | | Pre-tax margin | 8.2% | - | - | | Adjusted pre-tax earnings | $1.2 billion | - | - | | Adjusted pre-tax margin | 8.0% | - | - | | Total operating revenue | $15.2 billion | +2.6% | - | | Premium cabin revenue | - | +6% | - | | Basic Economy revenue | - | +4% | - | | Cargo revenue | - | +3% | - | | Loyalty revenue | - | +9% | - | - The company attributes its resilience in an economically volatile year to brand-loyal customers and diverse revenue sources[1](index=1&type=chunk) - United flew its **largest** summer mainline schedule ever in 2025 and achieved its **lowest** third-quarter cancel rate in history, demonstrating operational excellence[1](index=1&type=chunk) [Q4 2025 Outlook](index=1&type=section&id=Q4%202025%20Outlook) United anticipates a strong Q4 2025, with adjusted diluted EPS guidance of $3.00 to $3.50 and expects to achieve the **highest** total operating revenue for a single quarter in company history Q4 2025 Outlook Metrics | Metric | Guidance | | :-------------------------- | :---------------- | | Adjusted Diluted EPS | $3.00 to $3.50 | | Total Operating Revenue | Highest for a single quarter in company history | | Unit Revenue (YoY vs Q3) | Meaningful improvement | - The strong Q4 outlook is fueled by a growing base of brand-loyal customers and an improving economic and demand environment[1](index=1&type=chunk)[3](index=3&type=chunk) [Strategic Priorities and Customer Investments](index=1&type=section&id=Strategic%20Priorities%20and%20Customer%20Investments) United continues to make **significant** customer investments, totaling **over $1 billion** this year and an **additional $1 billion** planned for 2026, focusing on enhancing the experience, product, and service - **Over $1 billion** invested in customer experience in 2025, with **another $1 billion** planned for 2026[1](index=1&type=chunk)[3](index=3&type=chunk) - Enhancements include Starlink installations (free for MileagePlus members by 2027), seatback screens (over half of narrowbody fleet updated, **15-point increase** in customer satisfaction since Q3 2022), and **25% more** on food[2](index=2&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) - These investments aim to win and retain brand-loyal customers, providing economic resilience and upside as demand improves[3](index=3&type=chunk) [Third-Quarter Financial Results](index=4&type=section&id=Third-Quarter%20Financial%20Results) [Key Financial Metrics](index=4&type=section&id=Key%20Financial%20Metrics) United's Q3 2025 financial performance included a **2.6% increase** in total operating revenue to **$15.2 billion**, with capacity up **7.2%** Key Financial Metrics Summary | Metric | Value | YoY Change (vs Q3 2024) | | :-------------------------------- | :---------- | :------------------------ | | Capacity | - | +7.2% | | Total operating revenue | $15.2 billion | +2.6% | | TRASM | - | (4.3%) | | CASM | - | (2.8%) | | CASM-ex | - | (0.9%) | | Pre-tax earnings | $1.3 billion | - | | Pre-tax margin | 8.2% | - | | Adjusted pre-tax earnings | $1.2 billion | - | | Adjusted pre-tax margin | 8.0% | - | | Net income | $0.9 billion | - | | Adjusted net income | $0.9 billion | - | | Diluted EPS | $2.90 | - | | Adjusted diluted EPS | $2.78 | - | | Average fuel price per gallon | $2.43 | - | | Ending available liquidity | $16.3 billion | - | | Total debt, finance lease obligations and other financial liabilities | $25.4 billion | - | | Trailing twelve months net leverage | 2.1x | - | | Shares repurchased in Q3 2025 | $19 million | - | | Shares repurchased YTD (as of Sep 30, 2025) | $612 million | - | - Prepaid the remaining **$1.5 billion** balance of MileagePlus bonds, fully repaying all debt secured by the MileagePlus business[9](index=9&type=chunk) [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2025, total operating revenue increased by **2.6%** to **$15,225 million**, primarily driven by passenger revenue growth of **1.9%** Consolidated Statements of Operations Data | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Increase/(Decrease) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :-------------------- | | Operating revenue: | | | | | Passenger revenue | $13,815 | $13,561 | 1.9 | | Cargo revenue | $431 | $417 | 3.2 | | Other operating revenue | $979 | $865 | 13.2 | | **Total operating revenue** | **$15,225** | **$14,843** | **2.6** | | Operating expense: | | | | | Salaries and related costs | $4,555 | $4,323 | 5.4 | | Aircraft fuel | $2,997 | $2,993 | 0.1 | | Landing fees and other rent | $1,002 | $866 | 15.7 | | Aircraft maintenance materials and outside repairs | $779 | $765 | 1.8 | | Depreciation and amortization | $730 | $742 | (1.6) | | Regional capacity purchase | $686 | $651 | 5.3 | | Distribution expenses | $555 | $574 | (3.3) | | Aircraft rent | $54 | $65 | (16.7) | | Special charges (credits) | $(73) | $(5) | NM | | Other operating expenses | $2,546 | $2,304 | 10.5 | | **Total operating expense** | **$13,830** | **$13,278** | **4.2** | | **Operating income** | **$1,395** | **$1,565** | **(10.8)** | | Income before income taxes | $1,255 | $1,286 | (2.4) | | Income tax expense | $306 | $321 | (4.7) | | **Net income** | **$949** | **$965** | **(1.7)** | | Diluted earnings per share | $2.90 | $2.90 | — | [Passenger Revenue and Operating Statistics](index=11&type=section&id=Passenger%20Revenue%20and%20Operating%20Statistics) Consolidated passenger revenue increased by **1.9%** in Q3 2025, with domestic revenue up **3.1%** and Middle East/India/Africa showing **significant growth** of **30.8%** Passenger Revenue and Operating Statistics Summary | Region | 3Q 2025 Passenger Revenue (Millions) | Passenger Revenue vs 3Q 2024 | PRASM vs 3Q 2024 | ASMs vs 3Q 2024 | | :-------------------- | :----------------------------------- | :--------------------------- | :--------------- | :-------------- | | Domestic | $8,099 | 3.1% | (3.3%) | 6.6% | | Europe | $2,933 | (1.3%) | (7.3%) | 6.5% | | Middle East/India/Africa | $347 | 30.8% | 6.1% | 23.3% | | Atlantic (Total) | $3,280 | 1.3% | (6.2%) | 8.0% | | Pacific | $1,359 | 1.8% | (3.9%) | 5.9% | | Latin America | $1,078 | (4.8%) | (13.5%) | 10.1% | | International (Total) | $5,717 | 0.2% | (7.1%) | 7.9% | | **Consolidated** | **$13,815** | **1.9%** | **(5.0%)** | **7.2%** | Passenger Revenue and Operating Statistics Summary | Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------- | | Passengers (thousands) | 48,382 | 45,559 | 6.2 | | RPMs (millions) | 73,769 | 69,549 | 6.1 | | ASMs (millions) | 87,417 | 81,541 | 7.2 | | Passenger load factor (Consolidated) | 84.4% | 85.3% | (0.9) pts. | | PRASM (cents) | 15.80 | 16.63 | (5.0) | | TRASM (cents) | 17.42 | 18.20 | (4.3) | | Average yield per RPM (cents) | 18.73 | 19.50 | (4.0) | | Cargo revenue ton miles (millions) | 890 | 881 | 1.0 | | Aircraft in fleet at end of period | 1,486 | 1,381 | 7.6 | | Employee headcount (thousands) | 111.9 | 106.5 | 5.1 | | CASM (cents) | 15.82 | 16.28 | (2.8) | | CASM-ex (cents) | 12.15 | 12.26 | (0.9) | | Average aircraft fuel price per gallon | $2.43 | $2.56 | (5.1) | | Fuel gallons consumed (millions) | 1,233 | 1,170 | 5.4 | [Operational and Customer Achievements](index=3&type=section&id=Operational%20and%20Customer%20Achievements) [Customer Experience](index=3&type=section&id=Customer%20Experience) United continues to enhance customer experience through technology and infrastructure, leading to the **highest** customer satisfaction rate for a third quarter since 2022 - Launched collaboration with Apple TV, offering free streaming on **130,000+** seatback screens[9](index=9&type=chunk) - Received FAA certification for the first mainline Starlink-equipped aircraft, with free access for MileagePlus customers[13](index=13&type=chunk) - Expanded TSA PreCheck Touchless ID to **12** airports, including Denver and Newark hubs[13](index=13&type=chunk) - Opened a new two-story, **33,000 sq ft** United Club at Denver hub and the United Globe Club at Capital One Arena[13](index=13&type=chunk) - Achieved the **highest** customer satisfaction rate for a third quarter since 2022 across key drivers, supported by an **$85 million** investment in food and beverage[9](index=9&type=chunk) [Operations](index=3&type=section&id=Operations) United demonstrated strong operational reliability in Q3 2025, achieving its **highest** third-quarter completion factor in company history and carrying **over 48 million customers**, a quarterly **record** - Operated the **largest** daily mainline schedule in a quarter, carrying **over 48 million customers (a record)**[9](index=9&type=chunk) - Achieved the **highest** third-quarter completion rate in company history[13](index=13&type=chunk) - United Express achieved **43 days** with a **100% completion rate** in Q3, setting a company **record** of **92 days** year-to-date[13](index=13&type=chunk) - Newark hub achieved its best operational performance for a summer in the airline's history[13](index=13&type=chunk) - Connection Saver saved **290,000** potential missed customer connections, the **highest** for a third quarter in company history[13](index=13&type=chunk) [Network](index=3&type=section&id=Network) United expanded its network **significantly**, resuming flights to Tel Aviv, adding new domestic and international routes, and launching a codeshare program with ITA Airways - Resumed flights to Tel Aviv from Chicago O'Hare and Washington Dulles, starting early November[13](index=13&type=chunk) - Announced summer 2026 flights to new destinations like Split, Croatia; Glasgow, Scotland; Santiago de Compostela, Spain; and Bari, Italy, while bringing back all six new Atlantic destinations from summer 2025[4](index=4&type=chunk) - Expanded winter schedule with additional flights to **15 U.S. cities** and new routes from Newark to Columbia, SC and Chattanooga, TN[16](index=16&type=chunk) - Launched a codeshare program with ITA Airways, providing access to more Italian destinations[16](index=16&type=chunk) - United is the **largest** carrier across the Atlantic, with service to **46 cities** planned for 2026[4](index=4&type=chunk) [Corporate Initiatives and Recognition](index=6&type=section&id=Corporate%20Initiatives%20and%20Recognition) [Employees, Communities and Investments](index=6&type=section&id=Employees%20Commuities%20and%20Investments) United engaged in extensive community and employee initiatives, including its fifth annual September of Service, disaster relief transport, and funding for wildfire-impacted schools - **Over 3,500 employees** volunteered **11,000+ hours** in September of Service, packaging **over 497,000 meals**[16](index=16&type=chunk) - Supported transport of **over 117 responders** and **221,000 pounds** of cargo for **25 non-profit organizations** in disaster relief efforts[16](index=16&type=chunk) - Committed **$250,000** in funding to **24 schools** impacted by California wildfires[16](index=16&type=chunk) - Launched a Campus Ambassador Program to recruit future talent and hosted **18** Girls in Aviation Day events[16](index=16&type=chunk) - United Airlines Ventures invested in supersonic aircraft startup Astro Mechanica[16](index=16&type=chunk) [Awards](index=6&type=section&id=Awards) United and its leadership received multiple recognitions, including being named one of America's Most Admired Workplaces by Newsweek and a Best Employer for Women by Forbes - Recognized in Newsweek's 2026 list of America's Most Admired Workplaces, America's Greatest Workplaces for Parents and Families, and America's Greatest Companies[16](index=16&type=chunk) - Named in Forbes' 2025 list of Best Employers for Women[16](index=16&type=chunk) - CEO Scott Kirby received APEX International's Lifetime Achievement award[16](index=16&type=chunk) - CFO Mike Leskinen was named a Notable Leader in Finance by Crain's Chicago Business[16](index=16&type=chunk) [Financial Statements (Unaudited)](index=17&type=section&id=Financial%20Statements%20(Unaudited)) [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2025, total assets increased to **$76,313 million** from **$74,083 million** at December 31, 2024, primarily driven by an increase in operating property and equipment, net, and operating lease right-of-use assets Condensed Consolidated Balance Sheets Summary | (in millions) | Sep 30, 2025 | Dec 31, 2024 | Change | | :---------------------------------------------------- | :----------- | :----------- | :------- | | **ASSETS** | | | | | Cash and cash equivalents | $6,730 | $8,769 | $(2,039) | | Short-term investments | $6,599 | $5,706 | $893 | | Total current assets | $18,094 | $18,883 | $(789) | | Operating property and equipment, net | $44,968 | $42,908 | $2,060 | | Operating lease right-of-use assets | $4,821 | $3,815 | $1,006 | | **Total assets** | **$76,313** | **$74,083** | **$2,230** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | | Advance ticket sales | $9,338 | $7,561 | $1,777 | | Current maturities of long-term debt, finance leases, and other financial liabilities | $4,621 | $3,453 | $1,168 | | Total current liabilities | $27,119 | $23,314 | $3,805 | | Long-term debt, finance leases, and other financial liabilities | $20,807 | $25,203 | $(4,396) | | Long-term obligations under operating leases | $5,331 | $4,510 | $821 | | **Total liabilities** | **$61,995** | **$61,407** | **$588** | | **Total stockholders' equity** | **$14,309** | **$12,675** | **$1,634** | [Condensed Statements of Consolidated Cash Flows](index=18&type=section&id=Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) For the nine months ended September 30, 2025, net cash provided by operating activities was **$7,145 million**, a slight decrease from **$7,221 million** in the prior year Condensed Statements of Consolidated Cash Flows Summary | (in millions) | 2025 | 2024 | | :---------------------------------------------------- | :----------- | :----------- | | 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 | | Cash, cash equivalents and restricted cash at end of the period | $6,871 | $9,028 | - Investing activities saw a **substantial increase** in cash outflow, largely due to purchases of short-term and other investments (**$6,454 million** in 2025 vs **$4,057 million** in 2024)[67](index=67&type=chunk) - Financing activities included **significant** payments of long-term debt (**$4,196 million**) and repurchases of common stock (**$610 million**)[67](index=67&type=chunk) [Non-GAAP Financial Information](index=8&type=section&id=Non-GAAP%20Financial%20Information) [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) United Airlines uses various non-GAAP financial measures to provide supplemental information that management believes enhances understanding of the company's underlying financial performance and trends - Non-GAAP measures are used to supplement GAAP financial measures, offering additional insights into performance and trends[29](index=29&type=chunk)[44](index=44&type=chunk) - Exclusions typically include special charges, unrealized gains/losses, and other items not related to ordinary course of business[30](index=30&type=chunk)[47](index=47&type=chunk) - Changes in methodology for Adjusted EBITDAR and Free Cash Flow were implemented effective January 1, 2025, with prior periods recast for comparability[48](index=48&type=chunk)[50](index=50&type=chunk) [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [CASM-ex Reconciliation](index=13&type=section&id=CASM-ex%20Reconciliation) For Q3 2025, CASM (GAAP) was **15.82 cents**, decreasing by **2.8%** YoY, while CASM-ex (Non-GAAP) was **12.15 cents**, a **0.9% decrease** compared to Q3 2024 CASM-ex Reconciliation Table | (in cents) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | CASM (GAAP) | 15.82 | 16.28 | (2.8) | | Fuel expense | 3.43 | 3.68 | (6.8) | | Profit sharing | 0.26 | 0.28 | (6.8) | | Third-party business expenses | 0.07 | 0.07 | (3.5) | | Special charges | (0.08) | (0.01) | NM | | **CASM-ex (Non-GAAP)** | **12.15** | **12.26** | **(0.9)** | [Adjusted EBITDA and Adjusted EBITDAR Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDAR%20Reconciliation) Adjusted EBITDA for Q3 2025 was **$2,081 million**, down from **$2,327 million** in Q3 2024, and Adjusted EBITDAR was **$2,302 million**, a decrease from **$2,559 million** in the prior year Adjusted EBITDA and EBITDAR Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Net income (GAAP) | $949 | $965 | | Depreciation and amortization | $730 | $742 | | Interest expense, net of capitalized interest and interest income | $136 | $139 | | Income tax expense | $306 | $321 | | Special charges (credits) | $(73) | $(5) | | Nonoperating unrealized losses on investments, net | $13 | $90 | | Nonoperating debt extinguishment and modification fees | $20 | $75 | | **Adjusted EBITDA (non-GAAP)** | **$2,081** | **$2,327** | | Adjusted EBITDA margin (non-GAAP) | 13.7% | 15.7% | | Fixed portion of operating lease expense | $221 | $232 | | **Adjusted EBITDAR (non-GAAP)** | **$2,302** | **$2,559** | [Adjusted Capital Expenditures Reconciliation](index=14&type=section&id=Adjusted%20Capital%20Expenditures%20Reconciliation) Adjusted capital expenditures for Q3 2025 were **$1,881 million**, an increase from **$1,510 million** in Q3 2024, primarily driven by operating leases converted to finance leases Adjusted Capital Expenditures Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Capital expenditures, net of flight equipment purchase deposit returns (GAAP) | $1,464 | $1,410 | | Property and equipment acquired through the issuance or modification of debt, finance leases and other financial liabilities | — | $48 | | Operating leases converted to finance leases | $417 | $52 | | **Adjusted capital expenditures (Non-GAAP)** | **$1,881** | **$1,510** | [Free Cash Flow Reconciliation](index=14&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow for Q3 2025 was negative **$153 million**, compared to negative **$10 million** in Q3 2024, with the nine months ended September 30, 2025, showing **$3,289 million** Free Cash Flow Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities (GAAP) | $1,218 | $1,498 | | Net cash provided by (used in) investing activities (GAAP) | $(1,743) | $(2,511) | | Net change in short-term investments | $337 | $968 | | Net change in restricted cash | $35 | $35 | | **Free cash flow (Non-GAAP)** | **$(153)** | **$(10)** | [Adjusted Total Debt, Adjusted Net Debt and Net Leverage Reconciliation](index=14&type=section&id=Adjusted%20Total%20Debt,%20Adjusted%20Net%20Debt%20and%20Net%20Leverage%20Reconciliation) As of September 30, 2025, Adjusted total debt was **$32,296 million**, a decrease of **$2,687 million** YoY, resulting in a net leverage ratio of **2.1x** Adjusted Debt and Leverage Reconciliation Table | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase/(Decrease) | | :---------------------------------------------------- | :----------- | :----------- | :------------------ | | Debt, finance lease obligations and other financial liabilities - current and noncurrent (GAAP) | $25,428 | $28,436 | $(3,008) | | Operating lease obligations - current and noncurrent | $5,894 | $4,923 | $971 | | Pension and postretirement liabilities - noncurrent | $974 | $1,624 | $(650) | | **Adjusted total debt (Non-GAAP)** | **$32,296** | **$34,983** | **$(2,687)** | | Less: Cash and cash equivalents | $6,730 | $8,812 | $(2,082) | | Short-term investments | $6,599 | $5,352 | $1,247 | | **Adjusted net debt (Non-GAAP)** | **$18,967** | **$20,819** | **$(1,852)** | | **Net leverage (Non-GAAP)** | **2.1x** | **2.4x** | **(0.3) pts.** | [Adjusted Operating Expenses, Income, and EPS Reconciliation](index=16&type=section&id=Adjusted%20Operating%20Expenses,%20Income,%20and%20EPS%20Reconciliation) Adjusted operating expenses for Q3 2025 increased by **6.2%** to **$10,619 million**, while adjusted diluted EPS decreased by **16.5%** to **$2.78** Adjusted Operating Metrics and EPS Reconciliation Table | (in millions, except per share data) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Operating expenses (GAAP) | $13,830 | $13,278 | 4.2 | | Adjusted operating expenses (Non-GAAP) | $10,619 | $9,998 | 6.2 | | Operating income (GAAP) | $1,395 | $1,565 | (10.8) | | Adjusted operating income (Non-GAAP) | $1,322 | $1,560 | (15.2) | | Operating margin | 9.2% | 10.5% | (1.4) pts. | | Adjusted operating margin (Non-GAAP) | 8.7% | 10.5% | (1.8) pts. | | Pre-tax income (GAAP) | $1,255 | $1,286 | (2.4) | | Adjusted pre-tax income (Non-GAAP) | $1,215 | $1,446 | (16.0) | | Pre-tax margin (GAAP) | 8.2% | 8.7% | (0.4) pts. | | Adjusted pre-tax margin (Non-GAAP) | 8.0% | 9.7% | (1.8) pts. | | Net income (GAAP) | $949 | $965 | (1.7) | | Adjusted net income (Non-GAAP) | $909 | $1,110 | (18.1) | | Diluted earnings per share (GAAP) | $2.90 | $2.90 | — | | Adjusted diluted earnings per share (Non-GAAP) | $2.78 | $3.33 | (16.5) | [Notes to Financial Statements](index=19&type=section&id=Notes%20to%20Financial%20Statements) [Special Charges (Credits) and Unrealized Losses](index=19&type=section&id=Special%20Charges%20(Credits)%20and%20Unrealized%20Losses) In Q3 2025, United recorded net gains on sale of assets and other special charges of **$73 million**, primarily from aircraft sale-leaseback transactions Special Charges and Unrealized Losses Summary | (in millions) | 3 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2025 | | :------------------------------------------------------------------------------------ | :-------------------------- | :-------------------------- | | Operating: | | | | Labor contract ratification bonuses | $— | $561 | | (Gains) losses on sale of assets and other special charges | $(73) | $(295) | | **Total operating special charges (credits)** | **$(73)** | **$266** | | Nonoperating: | | | | Nonoperating unrealized losses on investments, net | $13 | $8 | | Nonoperating debt extinguishment and modification fees | $20 | $20 | | **Total nonoperating special charges and unrealized losses on investments, net** | **$33** | **$28** | - The **$73 million** net gain in Q3 2025 operating special charges was primarily due to **$75 million** in gains from aircraft sale-leaseback transactions[69](index=69&type=chunk) - A **significant $561 million** special charge was recorded in the nine months ended September 30, 2025, related to a labor contract ratification bonus for flight attendants[70](index=70&type=chunk) [Effective Tax Rate](index=19&type=section&id=Effective%20Tax%20Rate) United's effective tax rate for Q3 2025 was **24.4%**, a slight decrease from **25.0%** in Q3 2024, primarily due to a release of valuation allowance related to realized capital gains Effective Tax Rate Summary | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended Sep 30 | 24.4% | 25.0% | | Nine Months Ended Sep 30 | 22.5% | 24.4% | - The decrease in the effective tax rate is mainly attributed to the release of a valuation allowance linked to realized capital gains[71](index=71&type=chunk) [Additional Company Information](index=7&type=section&id=Additional%20Company%20Information) [Earnings Call and Investor Update](index=7&type=section&id=Earnings%20Call%20and%20Investor%20Update) United Airlines will host a conference call on October 16, 2025, to discuss Q3 2025 financial results and Q4 2025 outlook - Conference call scheduled for October 16, 2025, at 9:30 a.m. CST/10:30 a.m. EST[18](index=18&type=chunk) - Live webcast and replay available at ir.united.com[18](index=18&type=chunk) - Investor Update with additional business outlook and guidance is furnished on Form 8-K and available at ir.united.com[20](index=20&type=chunk) [About United](index=7&type=section&id=About%20United) United Airlines, headquartered in Chicago, operates the most comprehensive global route network among North American carriers and is currently the **largest** airline in the world - United operates the most comprehensive global route network among North American carriers[22](index=22&type=chunk) - Currently the **largest** airline in the world[22](index=22&type=chunk) - Traded on Nasdaq under the symbol "UAL"[22](index=22&type=chunk) [Website and Social Media Information](index=7&type=section&id=Website%20and%20Social%20Media%20Information) United routinely posts important news and information on its corporate and investor relations websites, which serve as primary channels for disclosing key information to investors - Corporate website: www.united.com; Investor relations website: ir.united.com[24](index=24&type=chunk) - Investor relations website is a primary channel for disclosing key information, including financial guidance and SEC filings, to comply with Regulation FD[24](index=24&type=chunk) - Social media channels (e.g., X, LinkedIn) may also be used for company updates and could be deemed material information[24](index=24&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=7&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding future financial results, goals, plans, and strategies, which are subject to inherent risks, assumptions, and uncertainties - Forward-looking statements are based on current expectations and involve inherent risks and uncertainties[25](index=25&type=chunk) - Actual results could differ materially due to factors such as execution risks, fleet strategy changes, competitive industry, reliance on suppliers, economic/political conditions, operational disruptions, and regulatory actions[28](index=28&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement, except as required by law[27](index=27&type=chunk)