United Airlines (UAL) Smashes Q3 Expectations with Record Revenues
Key Points
- Net income: $949 million; Adjusted net income: $909 million.
- Diluted EPS: $2.90 (unchanged YoY); Adjusted EPS: $2.78 (vs. $3.33 in Q3 2024).
- Operating revenue: $15.2 billion, up 2.6% year over year.
- Pre-tax income: $1.26 billion; Adjusted pre-tax margin: 8.0%.
- Operating margin: 9.2% GAAP; Adjusted margin: 8.7%.
- Operating cash flow: $1.2 billion; Free cash flow: –$153 million (after aircraft investments).
- Ending liquidity: $16.3 billion; Net leverage: 2.1×.
- Fuel cost per gallon: $2.43 (–5% YoY).
Quarter Highlights
- Passenger revenue: $13.8 billion (+1.9% YoY).
- Total operating revenue: $15.2 billion (+2.6% YoY).
- Premium cabin revenue: +6%; Basic Economy: +4%; Cargo: +3%; Loyalty: +9%.
- Capacity (ASM): +7.2%; load factor: 84.4%.
- CASM: –2.8%; CASM-ex: –0.9%.
- MileagePlus bonds: $1.5 billion prepaid, eliminating all secured debt on MileagePlus assets.
- Carried 48 million customers, a record high, with best on-time performance in company history.
- Fleet: 1,486 aircraft (+7.6% YoY).
CEO Statement
“We’ve invested in customers at every price point — from seatback screens and extra legroom to our industry-leading app and upcoming Starlink Wi-Fi rollout,” said Scott Kirby, CEO of United Airlines.
“Our investments and focus on operational reliability have built tremendous brand loyalty, helping United outperform through economic volatility. We expect Q4 to deliver the highest revenue in our history as customer demand strengthens.”
Future Outlook & Guidance
- Q4 2025 Guidance:
- Adjusted diluted EPS: $3.00 – $3.50.
- Operating revenue: expected to increase 5–7% YoY.
- CASM-ex: projected flat to slightly higher YoY.
- Capacity (ASM): expected up approximately 7% vs. Q4 2024.
- Fuel price: projected at $2.45 – $2.75 per gallon.
- Full-Year 2025:
- Adjusted EPS: $9.50 – $10.50.
- Pre-tax margin: around 9–10%.
- Free cash flow: expected $2.5 – $3.0 billion.
- Net leverage: to remain around 2×, supporting investment-grade credit metrics.
Financial Summary
| Metric | Q3 2025 | Q3 2024 |
|---|---|---|
| Total Operating Revenue | $15.23 B | $14.84 B |
| Operating Income | $1.40 B | $1.57 B |
| Pre-tax Income | $1.26 B | $1.29 B |
| Net Income | $949 M | $965 M |
| Adjusted Net Income | $909 M | $1.11 B |
| Diluted EPS | $2.90 | $2.90 |
| Adjusted EPS | $2.78 | $3.33 |
| Operating Margin | 9.2% | 10.5% |
| Adjusted Operating Margin | 8.7% | 10.5% |
| CASM | 15.82¢ | 16.28¢ |
| CASM-ex | 12.15¢ | 12.26¢ |
| Average Fuel Price | $2.43 | $2.56 |
| Passenger Load Factor | 84.4% | 85.3% |
| Fleet Size | 1,486 | 1,381 |
| Available Liquidity | $16.3 B | $15.1 B |
| Adjusted Net Debt | $19.0 B | $20.8 B |
Capital Return
- Repurchased $19 million of shares in Q3 and $612 million YTD.
- No dividend declared; focus remains on fleet investment and debt reduction.
- Debt: $25.4 billion (–$3 billion YoY).
- Net leverage: 2.1× trailing 12-month adjusted EBITDAR.
About United Airlines
United Airlines Holdings, Inc. (NASDAQ: UAL) operates one of the world’s largest global networks, serving 400+ destinations across six continents. With hubs in Chicago, Denver, Houston, Los Angeles, Newark, San Francisco, and Washington D.C., United carried over 48 million passengers in Q3 2025 — its highest ever. Headquartered in Chicago, United employs over 110,000 people worldwide.