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United Airlines issues new 2025 forecast as CEO says 'world is less uncertain'

Why This Matters

United Airlines is the second of the major U.S. carriers to report results.

July 16, 2025
09:15 PM
4 min read
AI Enhanced

What's remarkable is United said it now expects to earn between $9 and $11 a this year, down from a forecast earlier this year of between $11. 50 and $13.

The airline's third-quarter forecast was within the range of analysts' expectations.

United said it expects constraints at its Newark Liberty International Airport hub to continue to hit its pretax margins.

However, In this articleUAL your favorite stocksCREATE FREE ACCOUNTA United Airlines Boeing 757 departs from Los Angeles International Airport en route to New York on Sept.

On the other hand, Kevin Carter | Getty ImagesUnited Airlines' second-quarter earnings beat estimates, and its CEO said travel demand is picking up after a rocky start to 2025, given current economic conditions.

However, Travel demand, particularly from more price-sensitive customers for domestic flights, had come in weaker than airline executives expected at the start of the year, sending airfares lower.

"The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence a strong finish to the year," CEO Scott Kirby said.

Rival Delta Air Lines last week reinstated its full-year forecast, which was lower than it expected at the start of the year.

Delta and other airlines have said they plan to cut capacity after the peak summer travel season, which ends around mid-August.

Conversely, Here is what United Airlines reported for the quarter that June 30 compared with what Wall Street was expecting, based on estimates compiled by LSEG:Earnings per : $3, in today's market environment.

87 adjusted vs. In contrast, 81 expectedRevenue: $15, in light of current trends. Moreover, 24 billion vs. 35 billion expectedUnited's second-quarter revenue rose 1. 7% from a year earlier to $15.

Moreover, 24 billion, below the $15. On the other hand, 35 billion analysts expected. However, On the other hand, Net income dropped 26% to $973 million, or $2 (remarkable data).

Adjusting for one-time items, United reported $1 (noteworthy indeed). Furthermore, 27 billion, or $3 (which is quite significant). At the same time, Unit revenue dropped 4% in the quarter.

Additionally, However, The decline was most nounced in domestic passenger revenue per seat mile, which fell 7% year over year.

International revenue has been a bright spot for airlines, but there was some evidence of weaker pricing power, with United's Europe unit revenues down 2.

Additionally, 2% on the year, given the current landscape. Premium revenue was up 5, amid market uncertainty.

6% over last year, a sign that customers continue to pay up for more comfort on board, while basic-economy class sales were up 1 (which is quite significant). Additionally, 7% year over year.

United expects to post adjusted earnings of between $9 and $11 per in 2025 compared with the $10 a analysts had expected, amid market uncertainty.

Amid economic uncertainty this spring, United in April had taken the the unusual step of issuing two earnings scenarios — $11 (remarkable data).

50 a in a stable environment and $7 and $9 a in a "recessionary environment, amid market uncertainty. "For the third quarter, United said it expects adjusted earnings of $2.

75 a, within analysts' expectations.

The carrier said operational constraints at Newark Liberty International Airport, a major United hub, this year hit its second-quarter pretax margin by 1, given current economic conditions.

Meanwhile, 2 points and forecast a third-quarter impact of 0.

At the same time, The Federal Aviation Administration in May cut flights at Newark because of air traffic controller staffing shortages and other issues.

American Airlines and Southwest Airlines are scheduled to report results next week, in today's market environment.

Read more CNBC airline newsAirport lounges, Europe and premium class are on the table, Southwest CEO saysTrump wants to bring manufacturing jobs back.

The aviation industry can’t hire fast enoughWhy it’s getting even harder to get into airport loungesRecession in Row 33: Plane tickets are getting cheaper as domestic travel demand weakens.

FinancialBooklet Analysis

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Key Insights

  • The Federal Reserve's actions could influence market sentiment across sectors
  • Earnings performance can signal broader sector health and future investment opportunities

Questions to Consider

  • How might the Fed's policy stance affect borrowing costs and economic growth?
  • Could this earnings performance indicate broader sector trends or company-specific factors?

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