United Airlines (NASDAQ: UAL), Inc. is a major American airline headquartered in Chicago, Illinois. It operates an extensive domestic and international route network, serving more destinations than any other airline across the United States and six continents. Regional service is provided by independent carriers under the "United Express" brand, feeding into United's eight hubs. United was also one of the five founding airlines of the Star Alliance, the first global airline alliance, which further extends its network worldwide. United Airlines Holdings, Inc. is the parent company, with its common stock traded on the Nasdaq under the symbol "UAL". The company's shared purpose is "Connecting People. Uniting the World."

Foundation and Early Years

United Airlines' roots trace back to the dawn of commercial aviation in the late 1920s, with its official founding date recognized as 1926. This date stems from Varney Air Lines, a mail carrier service founded by Walter Varney, which was the oldest of several airlines that eventually amalgamated to form United.

Founding Story

The origins of United Airlines can be traced back to William Boeing, who founded the Boeing Airplane Company in 1916 as an aircraft manufacturer. Boeing's company transitioned into an air carrier for mail, achieving its first international postal delivery in 1919. In 1927, Boeing established Boeing Air Transport (BAT) to bid for and win the Chicago-San Francisco transcontinental mail route. This marked a significant step towards operating as an air carrier. In 1928, Boeing Airplane & Transport Corporation acquired Pacific Air Transport, a mail and passenger service operator.

The true foundation of what would become United Airlines began in 1929 with the formation of the United Aircraft and Transport Corporation (UATC). This vertically integrated conglomerate was a collaboration between William Boeing and Frederick Rentschler of Pratt & Whitney, aiming to unite interests in aircraft manufacturing, engine production, and airline operations. UATC quickly expanded by acquiring several existing airlines, including Varney Air Lines (founded 1926), Pacific Air Transport (founded 1926, acquired 1928), National Air Transport (founded 1925, acquired 1930), and Stout Air Services (founded 1925, acquired 1929). In 1931, UATC formally created United Air Lines, Inc. as a management company to oversee its various airline subsidiaries.

Initial Business Model

United Airlines' initial business model was primarily driven by U.S. Air Mail contracts. These contracts provided a significant portion of the company's revenue, with airmail accounting for 45% of United's total revenue at one point. The conglomerate's structure, encompassing both aircraft manufacturing (Boeing, Pratt & Whitney) and airline operations, allowed it to offer coast-to-coast mail and passenger services. While airmail was crucial, the company also began to develop passenger services. In 1930, United introduced the world's first stewardesses on its Chicago-San Francisco flights. In 1933, United introduced the Boeing 247, considered the first modern airliner, which enabled non-stop transcontinental travel.

Early Challenges and Solutions

The most significant early challenge for United Airlines came with the Air Mail Act of 1934, also known as the Air Mail Scandal. The U.S. government concluded that large holding companies like UATC were anti-competitive and passed new antitrust laws that mandated the separation of aircraft manufacturing from airline operations.

As a direct result of the 1934 Air Mail Act, United Aircraft and Transport Corporation was forced to dissolve. This led to the creation of three independent companies: United Air Lines Transport Corporation (later United Airlines), which became an independent operating company, fully unifying all the transport divisions; Boeing Airplane Company, which focused solely on aircraft manufacturing; and United Aircraft Corporation (later United Technologies Corporation, then RTX Corporation), which focused on eastern manufacturing interests, primarily engines. Despite the loss of significant airmail revenue, United's management, under William A. "Pat" Patterson (who became president in 1934), made the decision to continue flying full schedules. This was a strategic move to demonstrate stability and encourage the growth of passenger and cargo revenue to offset the lost mail contracts.

Growth and Development

United Airlines has a long and rich history, marked by significant milestones in its growth, market expansion, and product/service evolution. Its origins trace back to Varney Air Lines, founded in 1926.

Key Milestones

• Founding and Early Expansion (1926-1930s):
  • 1926: Varney Air Lines, a predecessor to United, was founded by Walter Varney and conducted its first airmail flight on April 6, 1926, from Pasco, Washington, to Boise, Idaho.
  • 1931: United Air Lines was officially formed as a subsidiary of United Aircraft and Transport Corporation, consolidating several airlines including Boeing Air Transport, Pacific Air Transport, Varney Air Lines, and National Air Transport.
  • 1933: United introduced the Boeing 247, considered the first modern airliner, which enabled non-stop transcontinental travel.
  • 1936: United introduced the first in-flight kitchen, offering hot meals to passengers.
• Post-War Growth and Major Mergers (1940s-2010):
  • 1961: United merged with Capital Airlines, becoming the world's largest commercial airline at the time. This merger significantly expanded its route network and fleet.
  • 1970: United became the first civilian airliner to break the sound barrier and introduced automated booking systems. It also began service with the Boeing 747, revolutionizing long-haul routes.
  • 1980s-1990s: Pan Am Acquisitions: United benefited from airline deregulation in the 1970s and the subsequent decline of Pan American World Airways.
    • 1985: Purchased Pan Am's entire Pacific Division, including routes and aircraft, significantly expanding its presence in the Pacific.
    • 1990: Acquired Pan Am's routes to London Heathrow Airport.
    • 1991: Acquired Pan Am's entire Latin American Division.
  • 1995: United was the launch customer for the Boeing 777, having significant input on its design.
  • 1997: United co-founded Star Alliance, the first global airline alliance, expanding its network worldwide.
  • 2002: United filed for bankruptcy, emerging in 2006 after restructuring.
  • 2010: United merged with Continental Airlines in an $8.5 billion all-stock deal, forming one of the world's largest carriers. This merger brought key hubs like Newark and Houston into the United network and combined their resources and expertise.
• Recent Growth and Future Outlook (2010-Present):
  • 2014: United closed its hub at Cleveland Hopkins International Airport for the second time.
  • 2016: United became the first U.S. airline to use commercial-scale biofuel in its planes.
  • 2017: The Boeing 747 retired from United's fleet.
  • 2021: United committed to purchasing electric aircraft, aiming for service by 2026, demonstrating a commitment to sustainability.
  • 2024: United achieved record-breaking financial results, including its best-ever financial performance with $4.2 billion in pre-tax earnings. The airline operated 1.3 million flights, carrying nearly 174 million passengers, and launched service to 33 new destinations.
  • 2025: United announced its largest international expansion in its history, adding eight new cities and 13 new routes for summer 2025. This expansion includes unique destinations not served by other U.S. airlines, such as Nuuk, Greenland; Palermo, Italy; Bilbao, Spain; Madeira Island, Portugal; Faro, Portugal; Dakar, Senegal; Ulaanbaatar, Mongolia; and Kaohsiung, Taiwan. United will offer 800 daily flights to 147 international destinations, including 40 routes exclusive to United among U.S. carriers.

Product and Service Evolution

United Airlines has consistently aimed to innovate and enhance the passenger experience:

• Early Innovations: Introduced hot meals in 1936 and used computers for flight path planning in 1937.
• In-Flight Entertainment: Revolutionized the in-flight experience by introducing audio systems in 1961.
• Fleet Modernization: Continuously updated its fleet with new-generation aircraft, including being the launch customer for the Boeing 777 and an early adopter of the Boeing 787 Dreamliner and Boeing 737 MAX aircraft.
• Premium Offerings: Identified premium seating as a growth area, with premium revenue rising in recent years. United offers various cabin classes, including United Polaris, United First, United Business, United Premium Plus, United Economy, Economy Plus, and Basic Economy.
• Customer Experience: Focused on enhancing customer experiences, achieving record on-time performance at its U.S. hubs and a significant number of no-cancellation days in 2024.
• Sustainability: Investing in fuel-efficient aircraft and implementing eco-friendly initiatives to reduce its carbon footprint, including commitments to electric aircraft.

Major Achievements

United Airlines has a long history of industry innovations, receiving numerous awards and recognition, and holding significant market leadership positions.

Industry Innovations

United Airlines has been a pioneer in the aviation industry, introducing several significant innovations throughout its history:

• Early Aviation and Aircraft Development:
  • United's origins trace back to Varney Air Lines, founded in 1926, which conducted the first scheduled airmail flight on April 6, 1926.
  • In 1933, United introduced the Boeing 247, considered the first modern airliner, enabling non-stop transcontinental travel.
  • United was the first airline to offer in-flight movies to passengers.
  • In 1936, United introduced the first flight kitchen, allowing passengers to enjoy hot meals, including fried chicken or scrambled eggs, high in the sky.
  • In 1937, United Airlines was the first airline to use computers to plan flight paths.
  • United was the launch customer for the Boeing 767-200 in 1982, placing the largest commercial airplane order at that time.
  • In 1995, United became the launch customer for the Boeing 777, having significant input on its design, which offered a more spacious and comfortable cabin.
  • United was the first North American carrier to take the Boeing 787 Dreamliner.
• Passenger Experience and Technology:
  • In 1930, United Airlines was the first to utilize female flight attendants, who were all registered nurses, a suggestion made by Ellen Church.
  • United introduced the industry's first passenger recognition program in 1939, the "100,000 Mile Club," awarding personalized plaques to frequent flyers.
  • In the late 1930s, United introduced hot meal service on Douglas DST and DC-3 flights, with the DC-3 being one of the first airliners equipped with a galley.
  • United was the first transportation company to install a two-way, coast-to-coast teletype service in 1938, linking stations from New York to San Francisco.
  • In 1970, United became the first airline to introduce automated systems for booking and reservations.
  • United launched its Mileage Plus frequent flyer program in May 1981, a week after American Airlines launched AAdvantage.
  • United has embraced digital technologies, offering a mobile app for managing journeys, self-service kiosks at airports, and ConnectionSaver technology to help passengers make tight connections.
  • United was the first and only airline to offer a dynamic seat map allowing children under 12 to be seated next to an adult for free at the time of booking.
  • In 2023, United implemented a new "WILMA" (window-middle-aisle) boarding policy for basic economy ticket holders, which is expected to reduce boarding times by up to two minutes.
  • United's latest seatback entertainment screens offer a wide range of accessible features, including closed captioning, text-to-speech, and audio-described movies.
• Sustainability and Future Technologies:
  • In 2016, United was the first U.S. airline to use commercial-scale biofuel in its planes.
  • United has set ambitious goals for carbon neutrality by 2050, investing in sustainable aviation fuels (SAF) and exploring innovative technologies to minimize its carbon footprint.
  • In February 2023, United launched the United Airlines Ventures (UAV) Sustainable Flight Fund, a first-of-its-kind investment fund to support startups decarbonizing air travel.
  • In 2023, United became the first U.S. airline to develop a tool showing customers an estimate of each flight's carbon footprint in their booking search.
  • United is exploring robotics and automation, including autonomous baggage carts and wheelchairs, to enhance the travel experience and improve operational efficiencies.
  • United has announced an agreement with SpaceX to bring Starlink's Wi-Fi to more aircraft.

Awards and Recognition

United Airlines has received numerous awards and recognitions for its services, diversity, and sustainability efforts:

• Airline of the Year and Service Awards:
  • In 2017, United Airlines was named the "Airline of the Year" by the International Flight Services Association (IFSA) in recognition of its United Polaris business class experience.
  • United has received "Best Overall Frequent Flyer Program" and "Best Frequent Flyer Bonus Program" awards for its MileagePlus program.
  • Its MileagePlus credit card from Chase has been recognized as "Best Credit Card," "Best Credit Card Rewards Program," and "Best Frequent-Flyer Affinity Credit Card Redemptions."
  • United's Hemispheres inflight magazine has received Communicator Awards for excellence in magazine design, photography, and cover design.
  • United has been nominated for and won various World Travel Awards, including "North America's Leading Airline - First Class" (2023, 2024), "North America's Leading Cabin Crew" (2023), and "North America's Leading Inflight Magazine" (2022, 2023). It also received "World's Leading Airline - Business Class" in 1998 and 1999.
• Diversity and Inclusion:
  • United Airlines has been recognized as a "Best Place to Work for LGBT Equality" by the Human Rights Campaign.
  • In 2019, United received the "Best-of-the-Best" designation from the National LGBT Chamber of Commerce (NGLCC) and the National Business Inclusion Consortium (NBIC) for its commitment to diversity and inclusion across all communities.
  • United became the first U.S. airline to offer non-binary gender options throughout all booking channels and the option to select the title "Mx." during booking and in MileagePlus profiles.
  • The airline leads the industry in employing the highest number of female pilots.
• Environmental and Humanitarian Efforts:
  • United has been named "Eco-Airline of the Year" by Air Transport World.
  • In 2025, United Airlines was honored as the inaugural recipient of the "Humanitarian Force for Good Award" at the 50th Annual Air Transport World (ATW) Airline Industry Awards, recognizing its commitment to supporting global communities in times of crisis.
• Overall Recognition:
  • Fast Company recognized United Airlines as one of the "Most Innovative Companies of 2024" for its investment in the future of fuel.

Market Leadership Positions

United Airlines has consistently maintained a strong presence and leadership in the global aviation market:

• Historical and Current Size:
  • United Air Lines was formed in 1931 from the merger of several airlines, with its oldest predecessor, Varney Air Lines, founded in 1926, making United the oldest commercial airline in the United States.
  • After merging with Capital Airlines in 1961, United briefly became the world's second-largest airline.
  • The merger with Continental Airlines in 2010 formed one of the world's largest carriers.
  • United consistently ranks among the largest airlines globally, currently first by the number of destinations served and third in terms of revenue and fleet size.
• Network and Alliances:
  • United operates an extensive domestic and international route network across the United States and six continents, serving more destinations than any other airline.
  • In 1997, United was one of the five airlines to launch Star Alliance, the first and largest global airline alliance, which extends its network worldwide.
  • United has one of the most extensive international route networks among U.S. rivals, operating to 120 international destinations.
• Financial Performance and Industry Influence:
  • United has been challenging Delta as an industry leader, with JP Morgan analysts noting in 2025 that "United is better managed today than at any prior point post-merger (with Continental)."
  • United's shares gained 135% in 2024, outperforming the S&P 500 Index.
  • The airline is positioned to capitalize on trends like booming demand for premium travel options.
  • United is making strategic investments in technology, energy, and aviation through its United Airlines Ventures and the UAV Sustainable Flight Fund, aiming to enhance global competitiveness and improve customer experience.
  • United's CEO, Scott Kirby, also serves as the Chairman of the Star Alliance Chief Executive Board (CEB).

Corporate Culture and Leadership

United Airlines, a major player in the global airline industry, has a corporate culture and philosophy shaped by its mission, values, and the contributions of its notable leaders.

Notable Leaders and Their Contributions

United Airlines has seen several key leaders who have significantly influenced its trajectory:

• William A. Patterson (1934-1966): As President, Patterson guided United through the "golden age of aviation." He oversaw its growth from a domestic mail carrier to an international passenger airline, expanding its route network and modernizing its fleet. Under his leadership, United became one of the "Big Four" US airlines and recorded a profit for 32 consecutive years.
• Percy Wood (1978-1987): Wood focused on systematically repairing United's core operations. He improved labor relations, eliminated wasteful spending, redesigned flight networks for efficiency, and modernized the fleet. He also expanded United's domestic and international reach after airline industry regulations were lifted in 1978.
• Stephen Wolf (1987-1994): Wolf transformed United during the deregulation era. His strategic moves included acquiring Pan Am's Pacific and European routes, establishing major airline loyalty program partnerships, and aggressive expansion plans that doubled United's route network and fleet size.
• Oscar Munoz (2015-2020): Munoz became CEO in 2015 and embarked on a "listening tour" to address employee concerns, aiming to rebuild trust and improve morale. He steered United towards renewed promise, securing landmark labor deals, upgrading the fleet, and strengthening hubs. He transitioned to Executive Chairman in May 2020.
• Scott Kirby (2020-Present): Kirby, who served as President from 2016 to 2020, became CEO in May 2020. He has been instrumental in United's cultural transformation and strategic growth plan. Kirby emphasizes aligning the company's purpose ("Connecting people, uniting the world") with employee pride and engagement, believing that a proud workforce will drive performance and customer service excellence. He has also led the airline through turbulent periods, including the COVID-19 pandemic, with transparent communication and a focus on shared purpose.

Company Values and Mission

United Airlines' mission and values are central to its corporate identity:

• Mission Statement: United Airlines' mission is "Connecting People, Uniting the World." This mission highlights the company's role in facilitating global connections, fostering cultural exchange, and promoting cooperation across borders.
• Core Values: United Airlines' core values guide its daily operations and decision-making. These include:
  • Safety: Prioritizing the well-being of customers and employees.
  • Caring: Going beyond standard customer service to provide exceptional care with empathy, compassion, and respect, recognizing individual passenger needs.
  • Dependability: Ensuring timely, reliable, and convenient flights.
  • Efficiency: Striving for operational excellence and effective resource management.
  • Inclusivity: Dedicated to employing and serving people from across the world, promoting diversity, and creating an environment where everyone feels welcome and valued.

United's brand campaign, "Good Leads The Way®," publicly reflects its commitment to doing the right thing for customers, employees, communities, and the planet.

Organizational Philosophy

United Airlines' organizational philosophy is built on several key principles:

• Customer-Centricity: United aims to provide outstanding customer service, focusing on making every journey smooth and enjoyable by exceeding expectations through personalized service and attention to detail. They strive to create a positive and supportive environment for passengers, empowering employees to resolve issues quickly and investing in technology to improve the customer experience.
• Employee Empowerment and Pride: A significant aspect of United's philosophy is creating a workplace where employees feel valued, respected, and empowered to make a difference. CEO Scott Kirby emphasizes that his primary objective is to create a company that employees are proud of, believing that this pride is the cornerstone of performance and service excellence. The company's mission statement explicitly focuses on creating an inclusive work environment characterized by dignity and respect, empowering employees to contribute to success.
• Operational Excellence: United focuses on being operationally excellent, aiming to provide timely, reliable, and convenient flights at competitive prices with minimal inconvenience.
• Diversity and Inclusion: United is committed to diversity and inclusion as a core leadership competency, aiming to create a culture where acceptance and appreciation of everyone are the norm. They are dedicated to employing and serving people from across the world and have a strong track record of managing operations while complying with industry and employment regulations.
• Strategic Adaptability and Growth: United has demonstrated resilience in facing challenges like fluctuating fuel prices and increased competition, showing a commitment to delivering value to shareholders. The company's ability to adapt to changing market conditions and capitalize on growth opportunities has been crucial to its financial performance.
• Sustainability: United Airlines has a commitment to environmental sustainability, including a 100% carbon reduction target by 2050 and significant investment in sustainable aviation fuel.

Current Status

United Airlines is a major player in the global aviation industry, demonstrating strong financial performance and strategic expansion in 2024 and looking ahead to 2025. The airline is focusing on international growth, fleet modernization, and sustainability initiatives.

Market Position

United Airlines has solidified its position as a leading global carrier. As of January 2025, United operates the world's largest airline fleet by number of planes, with 1,000 mainline aircraft, surpassing competitors like Delta and American Airlines.

Financially, United reported its best first-quarter performance in five years in Q1 2025, with a profit and record revenue of $13.2 billion, a 5.4% increase year-over-year. The company achieved pre-tax earnings of $478 million and a pre-tax margin of 3.6%. Diluted earnings per share were $1.16, and adjusted diluted earnings per share were $0.91. This strong performance was driven by growth across diversified revenue streams, including a 9.2% rise in premium cabin revenue, 7.4% in business revenue, and 7.6% in Basic Economy revenue. International travel remained robust, with Atlantic RASM up 4.7% and Pacific RASM up 8.5% year-over-year. Cargo revenue also surged by 9.7%.

For the full year 2024, United reported adjusted pre-tax earnings of $4.6 billion on revenues of $57.1 billion, with a liquidity of $17.4 billion at year-end. The airline generated $9.4 billion in operating cash flow and $3.4 billion in free cash flow in 2024. United's "United Next" strategy has been instrumental in improving results, strengthening its position in key hubs such as Newark, Dulles, Chicago, Denver, and San Francisco.

Recent Developments

• Fleet Expansion and Modernization: United is actively modernizing and expanding its fleet. As of July 2025, its fleet consists of 1,033 mainline aircraft, with an average age of 15.6 years. The "United Next" strategy, introduced during the COVID-19 pandemic, aims to replace older mainline aircraft and regional jets with new-generation planes, with 75% of its fleet expected to be new-generation by 2030. Since 2021, United has ordered over 500 narrow-body and 150 wide-body Boeing 787 Dreamliners. In 2028, United expects to take delivery of 110 additional aircraft, including 50 Boeing 787-9s and 60 Airbus A321neos, with options for more. The airline also plans to increase its average seats per departure in North America by over 40% by 2027, reaching over 145 seats, through deliveries of A321neo and 737 MAX aircraft. However, the airline has faced delays in aircraft deliveries from Boeing, particularly with the 737 MAX 10, pushing some deliveries into 2026. To mitigate this, United has diversified its fleet by leasing Airbus A321neo aircraft and redirecting some domestic aircraft to more profitable international routes. Deliveries of the Airbus A321XLR, initially expected in 2024, are now anticipated in summer 2026 due to supply chain issues and regulatory concerns.
• International Network Expansion: United announced its largest international expansion in history for summer 2025, adding eight new destinations and 13 new routes. Many of these new destinations are unique and not served by other U.S. airlines, focusing on less-traveled locations. This expansion includes new nonstop flights from Newark/New York to Nuuk (Greenland), Palermo (Italy), Bilbao (Spain), Madeira Island (Portugal), and Faro (Portugal). From Washington D.C./Dulles, new routes include Dakar (Senegal), Nice (France), and Venice (Italy). United's summer 2025 transatlantic schedule will be its largest ever, with over 760 weekly flights to more than 40 destinations.
• Sustainability Initiatives: United Airlines is a leader in sustainability within the airline industry, aiming to achieve net-zero greenhouse gas emissions by 2050 without relying on voluntary carbon offsets. This ambitious goal surpasses its previous commitment to reduce emissions by 50% by 2050. Key initiatives include:
  • Sustainable Aviation Fuel (SAF): United has been a pioneer in SAF adoption, becoming the first airline to use SAF for ongoing operations in 2016. They have invested in companies developing SAF and established the United Airline Ventures (UAV) Sustainable Flight Fund, which has grown to over $200 million with partners like Boeing, Embraer, GE Aerospace, and Google.
  • Carbon Capture: United has partnered with direct air capture firm Heirloom to purchase up to 500,000 tons of carbon dioxide removal.
  • Technological Investments: United has invested in various next-generation technologies for sustainable operations, including sodium-ion battery technology for ground equipment (Natron Energy), carbon capture technology to produce SAF (Dimensional Energy), and hydrogen-electric engine technology for zero-emission regional aircraft (ZeroAvia). They have also invested in electric aircraft startups like Heart Aerospace (30-seat hybrid-electric aircraft) and have options to purchase eVTOL aircraft from Archer Aviation and Eve Air Mobility, as well as Boom Overture supersonic aircraft.
  • Operational Efficiency: United is exploring ways to mitigate contrail formation through improved flight planning and operational efficiencies.

Future Outlook

United Airlines anticipates strong demand in 2025, with expected revenue growth per available seat mile in both domestic and international markets. The airline is well-positioned for continued growth, driven by its expanded network, enhanced customer experiences, and commitment to sustainability.

The airline industry as a whole is navigating capacity constraints due to supply chain issues at Boeing and Airbus, which is expected to lead to tighter capacity and a tailwind for pricing power. United's strategy of prioritizing pricing power over volume, including a 4% reduction in domestic capacity for Q3 2025, aims to avoid fare wars and maintain strong load factors.

United's focus on premium offerings and disciplined capacity management suggests a sustainable turnaround. The company's updated 2025 guidance of $9.00–$11.00 in adjusted diluted EPS reflects confidence in a strong finish to the year. While the "revenge spending" surge post-pandemic has faded, corporate and international travel demand remains resilient. United's strategic investments in sustainable aviation and new technologies are expected to future-proof the business against carbon pricing and reputational risks.

Summary

United Airlines (NASDAQ: UAL) has evolved from its humble beginnings as an airmail carrier in the 1920s to become a global aviation giant. Through strategic mergers, continuous innovation, and a commitment to customer service, United has consistently adapted to the dynamic aviation landscape. Its history is marked by pioneering achievements, from introducing the first flight attendants and in-flight kitchens to being a launch customer for groundbreaking aircraft like the Boeing 777.

Today, United stands as a leader in the industry, boasting the world's largest fleet by number of planes and an extensive international network. The airline's "United Next" strategy, coupled with significant investments in fleet modernization and sustainable aviation fuel, positions it for continued growth and profitability. With a strong focus on employee pride, customer-centricity, and environmental responsibility, United Airlines is not only connecting people and uniting the world but also shaping the future of air travel.