Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Operating Revenue | +1.67% | The modest increase to $15,236 million in Q2 2025 reflects a mixed performance: while ancillary (other) revenue was strong, underlying challenges in domestic and regional markets moderated growth relative to prior quarters where robust capacity and yield improvements drove sharper increases. |
Passenger Revenue | +1.1% | Passenger revenue reached $13,836 million, showing only modest growth compared to earlier quarters (which had seen increases of up to 10.1% in Q1 2024 and 4.8% in Q1 2025); this indicates a normalization after previous aggressive capacity expansions and yield improvements amid softer demand. |
Cargo Revenue | +3.9% | Cargo revenue grew to $430 million, continuing the trend of higher tonnage and yield enhancements seen in earlier periods, though the pace has moderated from prior more dynamic gains. |
Other Revenue | +8.7% | Other revenue surged to $970 million, driven by solid growth in ancillary services such as mileage revenue and United Club memberships—an initiative that has consistently outperformed as a component of total revenue in recent periods. |
Domestic Revenue | -9.8% | Domestic revenue declined sharply to $7,905 million, marking a reversal from earlier Q1 trends (e.g., +3.8% in Q1 2025) likely due to weaker demand, pricing pressure, and competitive dynamics in a softer macroeconomic environment. |
Pacific Revenue | -6% | Pacific revenue fell to $1,507 million, a downturn from Q1 2025’s 8.9% growth; seasonal adjustments and capacity normalization combined with emerging competitive pressures appear to have reversed the previous momentum in the region. |
Latin America Revenue | -7% | Latin America revenue dropped to $1,251 million, reversing the 7.7% growth observed in Q1 2025, as challenges in yield management and reduced passenger traffic in the region offset earlier capacity gains. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
EPS | Q3 2025 | $3.25 to $4.25 | $2.25 to $2.75 | lowered |
Cost Performance | Q3 2025 | no prior guidance | Similar cost performance is expected in Q3 2025 and Q4 2025 as seen in Q2 2025 | no prior guidance |
Revenue and Demand | Q3 2025 | no prior guidance | Temporary impact on Q3 2025 revenue results due to negative impacts on bookings from events in Newark, but recovery is expected. Positive inflection in demand with recent sales data confirming a stronger demand environment | no prior guidance |
Capacity | Q3 2025 | no prior guidance | Expectation of a step down in published industry capacity for August and September 2025, believed to be beneficial for United Airlines | no prior guidance |
EPS | FY 2025 | $11.50 to $13.50 | $9 to $11 | lowered |
Free Cash Flow | FY 2025 | no prior guidance | Expectation to generate over $2 billion in free cash flow for FY 2025 | no prior guidance |
Debt and Leverage | FY 2025 | no prior guidance | Targeting net leverage below two times and working towards investment grade for FY 2025 | no prior guidance |