United Airlines (UAL) 2Q 2025 earnings

United Airlines‘ second-quarter earnings beat estimates, and its CEO said travel demand is picking up after a rocky begin to 2025.

Travel demand, particularly from more price-sensitive customers for domestic flights, had are available weaker than airline executives expected at first of the yr, sending airfares lower.

“The world is less uncertain today than it was through the first six months of 2025 and that offers us confidence about a robust finish to the yr,” CEO Scott Kirby said.

Rival Delta Air Lines last week reinstated its full-year forecast, which was lower than it expected at first of the yr. Delta and other airlines have said they plan to chop capability after the height summer travel season, which ends around mid-August.

Here’s what United Airlines reported for the quarter that ended June 30 compared with what Wall Street was expecting, based on estimates compiled by LSEG:

• Earnings per share: $3.87 adjusted vs. $3.81 expected
• Revenue: $15.24 billion vs. $15.35 billion expected

United’s second-quarter revenue rose 1.7% from a yr earlier to $15.24 billion, below the $15.35 billion analysts expected. Net income dropped 26% to $973 million, or $2.97 a share. Adjusting for one-time items, United reported $1.27 billion, or $3.87 a share.

Unit revenue dropped 4% within the quarter. The decline was most pronounced in domestic passenger revenue per seat mile, which fell 7% yr over yr. International revenue has been a vibrant spot for airlines, but there was some evidence of weaker pricing power, with United’s Europe unit revenues down 2.2% on the yr.

Premium revenue was up 5.6% over last yr, an indication that customers proceed to pay up for more comfort on board, while basic-economy class sales were up 1.7% yr over yr.

United expects to post adjusted earnings of between $9 and $11 per share in 2025 compared with the $10 a share analysts had expected. Amid economic uncertainty this spring, United in April had taken the the weird step of issuing two earnings scenarios — $11.50 to $13.50 a share in a stable environment and $7 and $9 a share in a “recessionary environment.”

“We try to construct conservatism into our guide because stuff does occur. So much happened in the primary half of the yr,” Kirby told CNBC’s “Squawk Box” on Thursday. He said there may be “upside” to the forecast if demand stays as strong because it is now.

For the third quarter, United said it expects adjusted earnings of $2.25 and $2.75 a share, inside analysts’ expectations.

The carrier said operational constraints at Newark Liberty International Airport, a significant United hub, this yr hit its second-quarter pretax margin by 1.2 points and forecast a third-quarter impact of 0.9. TD Cowen airline analyst Tom Fitzgerald said that equated to a $218 million hit on pretax income within the second quarter and about $140 million for the third.

The Federal Aviation Administration in May cut flights at Newark due to air traffic controller staffing shortages and other issues.

American Airlines and Southwest Airlines are scheduled to report results next week.