United Airlines' first quarter results reflected resilience in a challenging travel environment, as management pointed to increased brand loyalty and premium segment strength amid softer overall demand. CEO Scott Kirby highlighted that United achieved its highest first-quarter pretax margins since the pandemic, attributing this to gains in loyal customers and operational improvements. Executive Vice President Andrew Nocella noted the impact of weaker demand in off-peak domestic flights, which was partially offset by continued growth in premium cabins and loyalty revenue.
Is now the time to buy UAL? Find out in our full research report (it’s free).
United Airlines (UAL) Q2 CY2025 Highlights:
- Revenue: $15.24 billion vs analyst estimates of $15.37 billion (1.7% year-on-year growth, 0.9% miss)
- Adjusted EPS: $3.87 vs analyst estimates of $3.81 (1.5% beat)
- Adjusted EBITDA: $2.51 billion vs analyst estimates of $2.59 billion (16.4% margin, 3.4% miss)
- Adjusted EPS guidance for the full year is $10 at the midpoint, missing analyst estimates by 1.4%
- Operating Margin: 8.7%, down from 12.9% in the same quarter last year
- Revenue Passenger Miles: 70.09 billion, up 3.02 billion year on year
- Market Capitalization: $29.39 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions United Airlines’s Q2 Earnings Call
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Jamie Baker (JPMorgan): Asked if United’s post-recession margins would improve relative to current levels. CEO Scott Kirby replied that normalized margins would likely be higher, citing structural gains from brand loyalty and supply discipline.
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Andrew Didora (Bank of America): Questioned additional cost levers in a downturn. CFO Mike Leskinen said the company would pursue further efficiencies but expects first-quarter cost performance to be the year’s best.
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Conor Cunningham (Melius Research): Inquired about balancing share gains with margin protection. Kirby stated United’s focus remains on building a great airline for loyal customers, rather than targeting competitors.
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Catherine O’Brien (Goldman Sachs): Asked about the offsetting effects of cost savings and fuel on revenue downside. Leskinen explained lower fuel prices and cost management had the largest positive impacts, with capacity reductions also contributing.
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Brandon Oglenski (Barclays): Sought clarity on how United measures brand loyalty. Executive Vice President Andrew Nocella pointed to market share gains in hub cities, loyalty program membership, and premium revenue premiums relative to peers.
Catalysts in Upcoming Quarters
In the months ahead, the StockStory team will closely watch (1) how effectively United manages domestic capacity adjustments and maintains premium segment momentum; (2) the progress of Starlink Wi-Fi installations and club expansions in major hubs; and (3) the impact of potential tariffs and aircraft supply constraints on cost structure and future growth. Execution in these areas will be key in assessing United’s ability to navigate an uncertain travel demand environment.
United Airlines currently trades at $91.10, up from $88.50 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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