United Airlines Boeing 757 will depart from Los Angeles International Airport on September 19, 2024 on the way to New York.
Kevin Carter | Getty Images
United Airlines‘Second quarter revenue beat the estimated, and its CEO said travel demand is recovering after a rocky start to 2025.
Travel demand, particularly from customers who are price-sensitive to domestic flight prices, was weaker than the expected airline executives at the beginning of the year, lowering airfares.
“The world is less uncertain than it was in the first six months of 2025 and gives us confidence about the strong finish this year,” CEO Scott Kirby said.
rival Delta Air Lines Last week we revived our year-round forecasts. This was lower than expected at the beginning of the year. Delta and other airlines say they plan to cut capacity after the peak of the summer travel season, which ends around mid-August.
Based on estimates compiled by LSEG, we reported for the quarter ended June 30th, compared to what Wall Street had expected:
Earnings per share: $3.87 adjusted vs. $3.81 expected revaluation: $15.24 billion vs. $15.35 billion
United’s second quarter revenue rose 1.7% from the previous year to $15.24 billion, the expected $15.35 billion analysts. Net income fell 26% to $973 million, or $2.97 per share. Adjusting the one-off items, United reported $1.27 billion, or $3.87 per share.
Unit revenue fell by 4% in the quarter. The decline was most notable in domestic passenger revenue per mile, down 7% year-on-year. International revenue was a bright spot for airlines, but there was evidence that pricing power was weak.
Premium revenues increased 5.6% from last year. This means that sales in the Basic Economics class increased 1.7% year-on-year as customers continue to pay for more comfort.
United will post adjusted revenues of $9 to $11 per share in 2025 compared to $10 analysts expected. Amidst the economic uncertainty this spring, United took the extraordinary step in April of issuing two revenue scenarios. It’s between $11.50 and $13.50 per share in a stable environment, and $7 and $9 per share in a “recession environment.”
In the third quarter, United said it expects a share of adjusted revenue of $2.25 and $2.75, within analyst expectations.
The airline said this year, operational constraints at United’s main hub, Newar Liberty International Airport, hit the end of the second quarter at 1.2 points, predicting a third quarter impact of 0.9.
In May, the Federal Aviation Administration cut flights in Newark due to a lack of staffing of air traffic controllers and other issues.
American Airlines and Southwest Airlines We plan to report the results next week.
