Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Operating Revenue | +1.7% | Increased from USD 14,986 million to USD 15,236 million, driven by modest improvements in passenger (up 1.1%), cargo (up 3.9%), and notably strong other revenue growth (+8.7%), which together offset a nearly flat domestic performance. This balanced mix builds on past quarters’ momentum in international segments and ancillary revenue initiatives. |
Passenger Revenue | +1.1% | Rose from USD 13,680 million to USD 13,836 million as a result of stable ticket pricing and modest capacity increases, reflecting a continuation of the market trends observed in previous periods where pricing strategies and demand stabilization played a key role. |
Cargo Revenue | +3.9% | Grew from USD 414 million to USD 430 million, reversing the previous period’s 1.8% decline. This improvement was achieved through higher tonnage and enhanced yields, indicating recovering market conditions and efficient capacity utilization compared to the earlier drop. |
Other Revenue | +8.7% | Increased from USD 892 million to USD 970 million, primarily due to robust mileage revenue from non-airline partners and higher sales of United Club memberships. This strong ancillary revenue growth is consistent with the gains seen in previous quarters. |
Domestic Revenue | +0.3% | Slightly increased from USD 8,761 million to USD 8,784 million. The near-flat performance suggests that domestic markets remain mature, with marginal capacity adjustments and steady pricing, continuing the trend observed in previous periods. |
Atlantic Segment Revenue | +2.8% | Climbed from USD 3,277 million to USD 3,370 million as a result of improved yields and higher PRASM despite slight capacity reductions. This moderated growth follows a stronger rebound in earlier periods and reflects focused capacity optimization in profitable markets. |
Pacific Revenue | +7.4% | Increased from USD 1,602 million to USD 1,720 million, driven by robust demand and improved load factors. Although previous periods saw dramatic increases (e.g., Q1 2024 experienced a 44.3% jump), the current growth remains strong owing to continued capacity and traffic improvements in a recovering international market. |
Latin America Revenue | +1.2% | Grew modestly from USD 1,346 million to USD 1,362 million as a result of incremental improvements in yield, capacity, and traffic. This slow yet positive change builds on the earlier upward trend in the region, indicating gradual market recovery and enhanced service performance. |
| 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 |
Research analysts covering United Airlines Holdings.