# United Airlines (UAL) Reports Second Quarter 2025 Results on July 16, 2025
United Airlines (UAL) has released its second-quarter earnings report, showcasing significant progress and financial performance improvements compared to the same quarter last year. The report, published on July 16, 2025, highlights the company’s operational efficiency, revenue growth, and updated earnings forecast.
## Key Financial Metrics and Performance Highlights
– **Earnings Reported:**
– Diluted earnings per share (EPS): **$2.97**, a decrease of **24.9%** from **$3.96** in Q2 2024.
– Adjusted diluted EPS: **$3.87**, a decrease of **6.5%** from **$4.14** in the same period last year.
– Total operating revenue: **$15.2 billion**, up **1.7%** from **$14.99 billion** in Q2 2024.
– Pre-tax earnings: **$1.2 billion**, down **28.2%** YoY compared to **$1.74 billion** in Q2 2024, achieving a pre-tax margin of **8.2%**.
– Adjusted pre-tax earnings: **$1.7 billion**, with an adjusted pre-tax margin of **11.0%**.
– **Revenue Streams:**
– Premium cabin revenue increased by **5.6%** from the previous year.
– Basic Economy revenue increased by **1.7%** YoY.
– Cargo revenue grew **3.8%** compared to last year.
– Loyalty revenue rose by **8.7%** YoY.
– **Capacity and Operations:**
– Capacity expanded by **5.9%** compared to Q2 2024.
– Average fuel price per gallon: **$2.34**, down **15.3%** from **$2.76** in Q2 2024.
– The airline generated **$2.2 billion** in operating cash flow and **$1.1 billion** in free cash flow, marking strong cash generation capabilities.
– Ending available liquidity reached **$18.6 billion**.
– **Market Performance:**
– United Airlines’ booking demand saw a **6-point acceleration** starting in early July 2025, attributed to less geopolitical and macroeconomic uncertainty.
– The company has upgraded full-year adjusted diluted EPS guidance to a range of **$9.00 to $11.00**.
– **Debt Management:**
– Total debt, finance lease obligations, and other financial liabilities were recorded at **$27.1 billion**.
– Trailing twelve months net leverage stood at **2.0x**, reducing from **2.4x** the same time last year.
– During Q2, United repurchased **$0.2 billion** of shares, totaling approximately **$0.6 billion** in share repurchases year-to-date.
## Operational Performance
– United Airlines marked one of its best operational performances post-pandemic:
– Achieved the highest consolidated on-time departure rates and lowest seat cancellation rates for a second quarter since the pandemic began.
– Led all major airlines in on-time performance at Newark Liberty International Airport (EWR).
– New Strategies and Innovations:
– Launched previous collaborations, including a unique booking strategy with JetBlue and enhanced onboard offerings through partnerships with Spotify.
– Introduced new technology and upgraded WiFi services on regional flights.
– Focused on customer satisfaction:
– Achieved its highest second-quarter Net Promoter Score since 2021.
– Expanded premium cabin offerings and improved customer experience metrics significantly.
## Dividend Declaration and Share Repurchases
– **Dividend**: The report did not mention any declared quarterly dividend for this quarter.
– **Share Repurchase**: In Q2 2025, United Airlines repurchased $0.2 billion worth of its shares, continuing the strategy in place to improve shareholders’ value.
## Conclusion and Outlook
United Airlines demonstrated resilience and operational strength in a challenging economic environment through Q2 2025, exceeding earnings expectations and revealing a solid basis for growth. The positive demand shift in July and strategic steps towards debt reduction bolster its future outlook for the remainder of the year. The company anticipates reduced week-to-week volatility in demand and supply inflections in the upcoming months, supporting an optimistic forecast ahead.
The full details of United Airlines’ earnings call discussing these results are set for July 17, 2025. Please refer to their official investor relations website for further information and context surrounding the earnings results.
| Three Months Ended June 30, | % Increase/Decrease | Six Months Ended June 30, | % Increase/Decrease | |||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||
| Passengers revenue | $ 13,836 | $ 13,680 | 1.1 | $ 25,696 | $ 24,993 | 2.8 |
| Cargo revenue | 430 | 414 | 3.8 | 859 | 805 | 6.7 |
| Other operating revenue | 970 | 892 | 8.8 | 1,893 | 1,727 | 9.6 |
| Total operating revenue | 15,236 | 14,986 | 1.7 | 28,448 | 27,525 | 3.4 |
| Salaries and related costs | 4,413 | 4,098 | 7.7 | 8,568 | 8,030 | 6.7 |
| Aircraft fuel | 2,775 | 3,133 | -11.4 | 5,476 | 6,087 | -10.0 |
| Landing fees and other rent | 961 | 866 | 11.0 | 1,834 | 1,670 | 9.8 |
| Aircraft maintenance materials and outside repairs | 865 | 716 | 20.8 | 1,596 | 1,489 | 7.2 |
| Depreciation and amortization | 733 | 719 | 2.0 | 1,461 | 1,427 | 2.4 |
| Regional capacity purchase expenses | 676 | 612 | 10.5 | 1,326 | 1,197 | 10.8 |
| Distribution expenses | 487 | 626 | -22.2 | 983 | 1,106 | -11.1 |
| Aircraft rent | 67 | 40 | 67.2 | 118 | 83 | 42.4 |
| Special charges | 447 | 36 | NM | 340 | 49 | NM |
| Other operating expenses | 2,487 | 2,211 | 12.5 | 4,814 | 4,359 | 10.4 |
| Total operating expense | 13,911 | 13,057 | 6.5 | 26,516 | 25,497 | 4.0 |
| Operating income | 1,325 | 1,929 | -31.3 | 1,932 | 2,028 | -4.7 |
| Interest expense | -361 | -427 | -15.5 | -717 | -881 | -18.6 |
| Interest income | 167 | 190 | -12.3 | 331 | 367 | -9.8 |
| Interest capitalized | 51 | 60 | -15.6 | 98 | 121 | -18.6 |
| Unrealized gains (losses) on investments | 26 | -33 | NM | 5 | -70 | NM |
| Miscellaneous income | 41 | 20 | NM | 77 | 10 | NM |
| Total nonoperating expense, net | -77 | -190 | -59.6 | -206 | -453 | -54.6 |
| Income before income taxes | 1,248 | 1,739 | -28.2 | 1,727 | 1,575 | 9.6 |
| Income tax expense | 275 | 416 | -33.9 | 366 | 376 | -2.7 |
| Net income | $ 973 | $ 1,323 | -26.4 | $ 1,361 | $ 1,199 | 13.5 |
| Earnings per share, diluted | $ 2.97 | $ 3.96 | -24.9 | $ 4.12 | $ 3.60 | 14.5 |
| Diluted weighted average shares outstanding | 327.2 | 333.9 | -2.0 | 330.1 | 333.1 | -0.9 |
| ASSETS | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | $ 9,354 | $ 8,769 |
| Short-term investments | 6,262 | 5,706 |
| Receivables, net | 2,286 | 2,163 |
| Aircraft fuel, spare parts and supplies, net | 1,547 | 1,572 |
| Prepaid expenses and other | 809 | 673 |
| Total current assets | 20,258 | 18,883 |
| Operating property and equipment, net | 43,896 | 42,908 |
| Operating lease right-of-use assets | 4,517 | 3,815 |
| Goodwill | 4,527 | 4,527 |
| Intangible assets, net | 2,669 | 2,683 |
| Investments in affiliates and other, net | 1,295 | 1,267 |
| Total noncurrent assets | 56,904 | 55,200 |
| Total assets | $ 77,163 | $ 74,083 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
|---|---|---|
| Accounts payable | $ 4,920 | $ 4,193 |
| Accrued salaries and benefits | 3,211 | 3,289 |
| Advance ticket sales | 9,664 | 7,561 |
| Frequent flyer deferred revenue | 3,552 | 3,403 |
| Current maturities of long-term debt, finance leases, and other financial liabilities | 6,194 | 3,453 |
| Current maturities of operating leases | 541 | 467 |
| Other | 910 | 948 |
| Total current liabilities | 28,992 | 23,314 |
| Long-term debt, finance leases, and other financial liabilities | 20,885 | 25,203 |
| Long-term obligations under operating leases | 5,166 | 4,510 |
| Frequent flyer deferred revenue | 4,114 | 4,038 |
| Pension and postretirement benefit liability | 1,199 | 1,233 |
| Deferred income taxes | 1,919 | 1,580 |
| Other | 1,515 | 1,530 |
| Total noncurrent liabilities | 34,798 | 38,094 |
| Total stockholders’ equity | 13,373 | 12,675 |
| Total liabilities and stockholders’ equity | $ 77,163 | $ 74,083 |
