[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 2025 Performance Highlights](index=1&type=section&id=Q3%202025%20Performance%20Highlights) United Airlines reported Q3 2025 profit and Q4 outlook exceeding Wall Street expectations, driven by brand-loyal customers and operational excellence Q3 2025 Key Financial Metrics | Metric | Value | YoY Change | Guidance | | :-------------------------------- | :---------- | :--------- | :---------------- | | Diluted EPS | $2.90 | - | - | | Adjusted Diluted EPS | $2.78 | - | $2.25 to $2.75 (above top end) | | Pre-tax earnings | $1.3 billion | - | - | | Pre-tax margin | 8.2% | - | - | | Adjusted pre-tax earnings | $1.2 billion | - | - | | Adjusted pre-tax margin | 8.0% | - | - | | Total operating revenue | $15.2 billion | +2.6% | - | | Premium cabin revenue | - | +6% | - | | Basic Economy revenue | - | +4% | - | | Cargo revenue | - | +3% | - | | Loyalty revenue | - | +9% | - | - The company attributes its resilience in an economically volatile year to brand-loyal customers and diverse revenue sources[1](index=1&type=chunk) - United flew its **largest** summer mainline schedule ever in 2025 and achieved its **lowest** third-quarter cancel rate in history, demonstrating operational excellence[1](index=1&type=chunk) [Q4 2025 Outlook](index=1&type=section&id=Q4%202025%20Outlook) United anticipates a strong Q4 2025, with adjusted diluted EPS guidance of $3.00 to $3.50 and expects to achieve the **highest** total operating revenue for a single quarter in company history Q4 2025 Outlook Metrics | Metric | Guidance | | :-------------------------- | :---------------- | | Adjusted Diluted EPS | $3.00 to $3.50 | | Total Operating Revenue | Highest for a single quarter in company history | | Unit Revenue (YoY vs Q3) | Meaningful improvement | - The strong Q4 outlook is fueled by a growing base of brand-loyal customers and an improving economic and demand environment[1](index=1&type=chunk)[3](index=3&type=chunk) [Strategic Priorities and Customer Investments](index=1&type=section&id=Strategic%20Priorities%20and%20Customer%20Investments) United continues to make **significant** customer investments, totaling **over $1 billion** this year and an **additional $1 billion** planned for 2026, focusing on enhancing the experience, product, and service - **Over $1 billion** invested in customer experience in 2025, with **another $1 billion** planned for 2026[1](index=1&type=chunk)[3](index=3&type=chunk) - Enhancements include Starlink installations (free for MileagePlus members by 2027), seatback screens (over half of narrowbody fleet updated, **15-point increase** in customer satisfaction since Q3 2022), and **25% more** on food[2](index=2&type=chunk)[3](index=3&type=chunk)[9](index=9&type=chunk) - These investments aim to win and retain brand-loyal customers, providing economic resilience and upside as demand improves[3](index=3&type=chunk) [Third-Quarter Financial Results](index=4&type=section&id=Third-Quarter%20Financial%20Results) [Key Financial Metrics](index=4&type=section&id=Key%20Financial%20Metrics) United's Q3 2025 financial performance included a **2.6% increase** in total operating revenue to **$15.2 billion**, with capacity up **7.2%** Key Financial Metrics Summary | Metric | Value | YoY Change (vs Q3 2024) | | :-------------------------------- | :---------- | :------------------------ | | Capacity | - | +7.2% | | Total operating revenue | $15.2 billion | +2.6% | | TRASM | - | (4.3%) | | CASM | - | (2.8%) | | CASM-ex | - | (0.9%) | | Pre-tax earnings | $1.3 billion | - | | Pre-tax margin | 8.2% | - | | Adjusted pre-tax earnings | $1.2 billion | - | | Adjusted pre-tax margin | 8.0% | - | | Net income | $0.9 billion | - | | Adjusted net income | $0.9 billion | - | | Diluted EPS | $2.90 | - | | Adjusted diluted EPS | $2.78 | - | | Average fuel price per gallon | $2.43 | - | | Ending available liquidity | $16.3 billion | - | | Total debt, finance lease obligations and other financial liabilities | $25.4 billion | - | | Trailing twelve months net leverage | 2.1x | - | | Shares repurchased in Q3 2025 | $19 million | - | | Shares repurchased YTD (as of Sep 30, 2025) | $612 million | - | - Prepaid the remaining **$1.5 billion** balance of MileagePlus bonds, fully repaying all debt secured by the MileagePlus business[9](index=9&type=chunk) [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2025, total operating revenue increased by **2.6%** to **$15,225 million**, primarily driven by passenger revenue growth of **1.9%** Consolidated Statements of Operations Data | Metric | 3 Months Ended Sep 30, 2025 (Millions) | 3 Months Ended Sep 30, 2024 (Millions) | % Increase/(Decrease) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :-------------------- | | Operating revenue: | | | | | Passenger revenue | $13,815 | $13,561 | 1.9 | | Cargo revenue | $431 | $417 | 3.2 | | Other operating revenue | $979 | $865 | 13.2 | | **Total operating revenue** | **$15,225** | **$14,843** | **2.6** | | Operating expense: | | | | | Salaries and related costs | $4,555 | $4,323 | 5.4 | | Aircraft fuel | $2,997 | $2,993 | 0.1 | | Landing fees and other rent | $1,002 | $866 | 15.7 | | Aircraft maintenance materials and outside repairs | $779 | $765 | 1.8 | | Depreciation and amortization | $730 | $742 | (1.6) | | Regional capacity purchase | $686 | $651 | 5.3 | | Distribution expenses | $555 | $574 | (3.3) | | Aircraft rent | $54 | $65 | (16.7) | | Special charges (credits) | $(73) | $(5) | NM | | Other operating expenses | $2,546 | $2,304 | 10.5 | | **Total operating expense** | **$13,830** | **$13,278** | **4.2** | | **Operating income** | **$1,395** | **$1,565** | **(10.8)** | | Income before income taxes | $1,255 | $1,286 | (2.4) | | Income tax expense | $306 | $321 | (4.7) | | **Net income** | **$949** | **$965** | **(1.7)** | | Diluted earnings per share | $2.90 | $2.90 | — | [Passenger Revenue and Operating Statistics](index=11&type=section&id=Passenger%20Revenue%20and%20Operating%20Statistics) Consolidated passenger revenue increased by **1.9%** in Q3 2025, with domestic revenue up **3.1%** and Middle East/India/Africa showing **significant growth** of **30.8%** Passenger Revenue and Operating Statistics Summary | Region | 3Q 2025 Passenger Revenue (Millions) | Passenger Revenue vs 3Q 2024 | PRASM vs 3Q 2024 | ASMs vs 3Q 2024 | | :-------------------- | :----------------------------------- | :--------------------------- | :--------------- | :-------------- | | Domestic | $8,099 | 3.1% | (3.3%) | 6.6% | | Europe | $2,933 | (1.3%) | (7.3%) | 6.5% | | Middle East/India/Africa | $347 | 30.8% | 6.1% | 23.3% | | Atlantic (Total) | $3,280 | 1.3% | (6.2%) | 8.0% | | Pacific | $1,359 | 1.8% | (3.9%) | 5.9% | | Latin America | $1,078 | (4.8%) | (13.5%) | 10.1% | | International (Total) | $5,717 | 0.2% | (7.1%) | 7.9% | | **Consolidated** | **$13,815** | **1.9%** | **(5.0%)** | **7.2%** | Passenger Revenue and Operating Statistics Summary | Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------- | | Passengers (thousands) | 48,382 | 45,559 | 6.2 | | RPMs (millions) | 73,769 | 69,549 | 6.1 | | ASMs (millions) | 87,417 | 81,541 | 7.2 | | Passenger load factor (Consolidated) | 84.4% | 85.3% | (0.9) pts. | | PRASM (cents) | 15.80 | 16.63 | (5.0) | | TRASM (cents) | 17.42 | 18.20 | (4.3) | | Average yield per RPM (cents) | 18.73 | 19.50 | (4.0) | | Cargo revenue ton miles (millions) | 890 | 881 | 1.0 | | Aircraft in fleet at end of period | 1,486 | 1,381 | 7.6 | | Employee headcount (thousands) | 111.9 | 106.5 | 5.1 | | CASM (cents) | 15.82 | 16.28 | (2.8) | | CASM-ex (cents) | 12.15 | 12.26 | (0.9) | | Average aircraft fuel price per gallon | $2.43 | $2.56 | (5.1) | | Fuel gallons consumed (millions) | 1,233 | 1,170 | 5.4 | [Operational and Customer Achievements](index=3&type=section&id=Operational%20and%20Customer%20Achievements) [Customer Experience](index=3&type=section&id=Customer%20Experience) United continues to enhance customer experience through technology and infrastructure, leading to the **highest** customer satisfaction rate for a third quarter since 2022 - Launched collaboration with Apple TV, offering free streaming on **130,000+** seatback screens[9](index=9&type=chunk) - Received FAA certification for the first mainline Starlink-equipped aircraft, with free access for MileagePlus customers[13](index=13&type=chunk) - Expanded TSA PreCheck Touchless ID to **12** airports, including Denver and Newark hubs[13](index=13&type=chunk) - Opened a new two-story, **33,000 sq ft** United Club at Denver hub and the United Globe Club at Capital One Arena[13](index=13&type=chunk) - Achieved the **highest** customer satisfaction rate for a third quarter since 2022 across key drivers, supported by an **$85 million** investment in food and beverage[9](index=9&type=chunk) [Operations](index=3&type=section&id=Operations) United demonstrated strong operational reliability in Q3 2025, achieving its **highest** third-quarter completion factor in company history and carrying **over 48 million customers**, a quarterly **record** - Operated the **largest** daily mainline schedule in a quarter, carrying **over 48 million customers (a record)**[9](index=9&type=chunk) - Achieved the **highest** third-quarter completion rate in company history[13](index=13&type=chunk) - United Express achieved **43 days** with a **100% completion rate** in Q3, setting a company **record** of **92 days** year-to-date[13](index=13&type=chunk) - Newark hub achieved its best operational performance for a summer in the airline's history[13](index=13&type=chunk) - Connection Saver saved **290,000** potential missed customer connections, the **highest** for a third quarter in company history[13](index=13&type=chunk) [Network](index=3&type=section&id=Network) United expanded its network **significantly**, resuming flights to Tel Aviv, adding new domestic and international routes, and launching a codeshare program with ITA Airways - Resumed flights to Tel Aviv from Chicago O'Hare and Washington Dulles, starting early November[13](index=13&type=chunk) - Announced summer 2026 flights to new destinations like Split, Croatia; Glasgow, Scotland; Santiago de Compostela, Spain; and Bari, Italy, while bringing back all six new Atlantic destinations from summer 2025[4](index=4&type=chunk) - Expanded winter schedule with additional flights to **15 U.S. cities** and new routes from Newark to Columbia, SC and Chattanooga, TN[16](index=16&type=chunk) - Launched a codeshare program with ITA Airways, providing access to more Italian destinations[16](index=16&type=chunk) - United is the **largest** carrier across the Atlantic, with service to **46 cities** planned for 2026[4](index=4&type=chunk) [Corporate Initiatives and Recognition](index=6&type=section&id=Corporate%20Initiatives%20and%20Recognition) [Employees, Communities and Investments](index=6&type=section&id=Employees%20Commuities%20and%20Investments) United engaged in extensive community and employee initiatives, including its fifth annual September of Service, disaster relief transport, and funding for wildfire-impacted schools - **Over 3,500 employees** volunteered **11,000+ hours** in September of Service, packaging **over 497,000 meals**[16](index=16&type=chunk) - Supported transport of **over 117 responders** and **221,000 pounds** of cargo for **25 non-profit organizations** in disaster relief efforts[16](index=16&type=chunk) - Committed **$250,000** in funding to **24 schools** impacted by California wildfires[16](index=16&type=chunk) - Launched a Campus Ambassador Program to recruit future talent and hosted **18** Girls in Aviation Day events[16](index=16&type=chunk) - United Airlines Ventures invested in supersonic aircraft startup Astro Mechanica[16](index=16&type=chunk) [Awards](index=6&type=section&id=Awards) United and its leadership received multiple recognitions, including being named one of America's Most Admired Workplaces by Newsweek and a Best Employer for Women by Forbes - Recognized in Newsweek's 2026 list of America's Most Admired Workplaces, America's Greatest Workplaces for Parents and Families, and America's Greatest Companies[16](index=16&type=chunk) - Named in Forbes' 2025 list of Best Employers for Women[16](index=16&type=chunk) - CEO Scott Kirby received APEX International's Lifetime Achievement award[16](index=16&type=chunk) - CFO Mike Leskinen was named a Notable Leader in Finance by Crain's Chicago Business[16](index=16&type=chunk) [Financial Statements (Unaudited)](index=17&type=section&id=Financial%20Statements%20(Unaudited)) [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2025, total assets increased to **$76,313 million** from **$74,083 million** at December 31, 2024, primarily driven by an increase in operating property and equipment, net, and operating lease right-of-use assets Condensed Consolidated Balance Sheets Summary | (in millions) | Sep 30, 2025 | Dec 31, 2024 | Change | | :---------------------------------------------------- | :----------- | :----------- | :------- | | **ASSETS** | | | | | Cash and cash equivalents | $6,730 | $8,769 | $(2,039) | | Short-term investments | $6,599 | $5,706 | $893 | | Total current assets | $18,094 | $18,883 | $(789) | | Operating property and equipment, net | $44,968 | $42,908 | $2,060 | | Operating lease right-of-use assets | $4,821 | $3,815 | $1,006 | | **Total assets** | **$76,313** | **$74,083** | **$2,230** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | | Advance ticket sales | $9,338 | $7,561 | $1,777 | | Current maturities of long-term debt, finance leases, and other financial liabilities | $4,621 | $3,453 | $1,168 | | Total current liabilities | $27,119 | $23,314 | $3,805 | | Long-term debt, finance leases, and other financial liabilities | $20,807 | $25,203 | $(4,396) | | Long-term obligations under operating leases | $5,331 | $4,510 | $821 | | **Total liabilities** | **$61,995** | **$61,407** | **$588** | | **Total stockholders' equity** | **$14,309** | **$12,675** | **$1,634** | [Condensed Statements of Consolidated Cash Flows](index=18&type=section&id=Condensed%20Statements%20of%20Consolidated%20Cash%20Flows) For the nine months ended September 30, 2025, net cash provided by operating activities was **$7,145 million**, a slight decrease from **$7,221 million** in the prior year Condensed Statements of Consolidated Cash Flows Summary | (in millions) | 2025 | 2024 | | :---------------------------------------------------- | :----------- | :----------- | | Net cash provided by operating activities | $7,145 | $7,221 | | Net cash used in investing activities | $(4,785) | $(936) | | Net cash used in financing activities | $(4,436) | $(3,591) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(2,075) | $2,694 | | Cash, cash equivalents and restricted cash at end of the period | $6,871 | $9,028 | - Investing activities saw a **substantial increase** in cash outflow, largely due to purchases of short-term and other investments (**$6,454 million** in 2025 vs **$4,057 million** in 2024)[67](index=67&type=chunk) - Financing activities included **significant** payments of long-term debt (**$4,196 million**) and repurchases of common stock (**$610 million**)[67](index=67&type=chunk) [Non-GAAP Financial Information](index=8&type=section&id=Non-GAAP%20Financial%20Information) [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) United Airlines uses various non-GAAP financial measures to provide supplemental information that management believes enhances understanding of the company's underlying financial performance and trends - Non-GAAP measures are used to supplement GAAP financial measures, offering additional insights into performance and trends[29](index=29&type=chunk)[44](index=44&type=chunk) - Exclusions typically include special charges, unrealized gains/losses, and other items not related to ordinary course of business[30](index=30&type=chunk)[47](index=47&type=chunk) - Changes in methodology for Adjusted EBITDAR and Free Cash Flow were implemented effective January 1, 2025, with prior periods recast for comparability[48](index=48&type=chunk)[50](index=50&type=chunk) [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [CASM-ex Reconciliation](index=13&type=section&id=CASM-ex%20Reconciliation) For Q3 2025, CASM (GAAP) was **15.82 cents**, decreasing by **2.8%** YoY, while CASM-ex (Non-GAAP) was **12.15 cents**, a **0.9% decrease** compared to Q3 2024 CASM-ex Reconciliation Table | (in cents) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | CASM (GAAP) | 15.82 | 16.28 | (2.8) | | Fuel expense | 3.43 | 3.68 | (6.8) | | Profit sharing | 0.26 | 0.28 | (6.8) | | Third-party business expenses | 0.07 | 0.07 | (3.5) | | Special charges | (0.08) | (0.01) | NM | | **CASM-ex (Non-GAAP)** | **12.15** | **12.26** | **(0.9)** | [Adjusted EBITDA and Adjusted EBITDAR Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDAR%20Reconciliation) Adjusted EBITDA for Q3 2025 was **$2,081 million**, down from **$2,327 million** in Q3 2024, and Adjusted EBITDAR was **$2,302 million**, a decrease from **$2,559 million** in the prior year Adjusted EBITDA and EBITDAR Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Net income (GAAP) | $949 | $965 | | Depreciation and amortization | $730 | $742 | | Interest expense, net of capitalized interest and interest income | $136 | $139 | | Income tax expense | $306 | $321 | | Special charges (credits) | $(73) | $(5) | | Nonoperating unrealized losses on investments, net | $13 | $90 | | Nonoperating debt extinguishment and modification fees | $20 | $75 | | **Adjusted EBITDA (non-GAAP)** | **$2,081** | **$2,327** | | Adjusted EBITDA margin (non-GAAP) | 13.7% | 15.7% | | Fixed portion of operating lease expense | $221 | $232 | | **Adjusted EBITDAR (non-GAAP)** | **$2,302** | **$2,559** | [Adjusted Capital Expenditures Reconciliation](index=14&type=section&id=Adjusted%20Capital%20Expenditures%20Reconciliation) Adjusted capital expenditures for Q3 2025 were **$1,881 million**, an increase from **$1,510 million** in Q3 2024, primarily driven by operating leases converted to finance leases Adjusted Capital Expenditures Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Capital expenditures, net of flight equipment purchase deposit returns (GAAP) | $1,464 | $1,410 | | Property and equipment acquired through the issuance or modification of debt, finance leases and other financial liabilities | — | $48 | | Operating leases converted to finance leases | $417 | $52 | | **Adjusted capital expenditures (Non-GAAP)** | **$1,881** | **$1,510** | [Free Cash Flow Reconciliation](index=14&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow for Q3 2025 was negative **$153 million**, compared to negative **$10 million** in Q3 2024, with the nine months ended September 30, 2025, showing **$3,289 million** Free Cash Flow Reconciliation Table | (in millions) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities (GAAP) | $1,218 | $1,498 | | Net cash provided by (used in) investing activities (GAAP) | $(1,743) | $(2,511) | | Net change in short-term investments | $337 | $968 | | Net change in restricted cash | $35 | $35 | | **Free cash flow (Non-GAAP)** | **$(153)** | **$(10)** | [Adjusted Total Debt, Adjusted Net Debt and Net Leverage Reconciliation](index=14&type=section&id=Adjusted%20Total%20Debt,%20Adjusted%20Net%20Debt%20and%20Net%20Leverage%20Reconciliation) As of September 30, 2025, Adjusted total debt was **$32,296 million**, a decrease of **$2,687 million** YoY, resulting in a net leverage ratio of **2.1x** Adjusted Debt and Leverage Reconciliation Table | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase/(Decrease) | | :---------------------------------------------------- | :----------- | :----------- | :------------------ | | Debt, finance lease obligations and other financial liabilities - current and noncurrent (GAAP) | $25,428 | $28,436 | $(3,008) | | Operating lease obligations - current and noncurrent | $5,894 | $4,923 | $971 | | Pension and postretirement liabilities - noncurrent | $974 | $1,624 | $(650) | | **Adjusted total debt (Non-GAAP)** | **$32,296** | **$34,983** | **$(2,687)** | | Less: Cash and cash equivalents | $6,730 | $8,812 | $(2,082) | | Short-term investments | $6,599 | $5,352 | $1,247 | | **Adjusted net debt (Non-GAAP)** | **$18,967** | **$20,819** | **$(1,852)** | | **Net leverage (Non-GAAP)** | **2.1x** | **2.4x** | **(0.3) pts.** | [Adjusted Operating Expenses, Income, and EPS Reconciliation](index=16&type=section&id=Adjusted%20Operating%20Expenses,%20Income,%20and%20EPS%20Reconciliation) Adjusted operating expenses for Q3 2025 increased by **6.2%** to **$10,619 million**, while adjusted diluted EPS decreased by **16.5%** to **$2.78** Adjusted Operating Metrics and EPS Reconciliation Table | (in millions, except per share data) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | % Increase/(Decrease) | | :---------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Operating expenses (GAAP) | $13,830 | $13,278 | 4.2 | | Adjusted operating expenses (Non-GAAP) | $10,619 | $9,998 | 6.2 | | Operating income (GAAP) | $1,395 | $1,565 | (10.8) | | Adjusted operating income (Non-GAAP) | $1,322 | $1,560 | (15.2) | | Operating margin | 9.2% | 10.5% | (1.4) pts. | | Adjusted operating margin (Non-GAAP) | 8.7% | 10.5% | (1.8) pts. | | Pre-tax income (GAAP) | $1,255 | $1,286 | (2.4) | | Adjusted pre-tax income (Non-GAAP) | $1,215 | $1,446 | (16.0) | | Pre-tax margin (GAAP) | 8.2% | 8.7% | (0.4) pts. | | Adjusted pre-tax margin (Non-GAAP) | 8.0% | 9.7% | (1.8) pts. | | Net income (GAAP) | $949 | $965 | (1.7) | | Adjusted net income (Non-GAAP) | $909 | $1,110 | (18.1) | | Diluted earnings per share (GAAP) | $2.90 | $2.90 | — | | Adjusted diluted earnings per share (Non-GAAP) | $2.78 | $3.33 | (16.5) | [Notes to Financial Statements](index=19&type=section&id=Notes%20to%20Financial%20Statements) [Special Charges (Credits) and Unrealized Losses](index=19&type=section&id=Special%20Charges%20(Credits)%20and%20Unrealized%20Losses) In Q3 2025, United recorded net gains on sale of assets and other special charges of **$73 million**, primarily from aircraft sale-leaseback transactions Special Charges and Unrealized Losses Summary | (in millions) | 3 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2025 | | :------------------------------------------------------------------------------------ | :-------------------------- | :-------------------------- | | Operating: | | | | Labor contract ratification bonuses | $— | $561 | | (Gains) losses on sale of assets and other special charges | $(73) | $(295) | | **Total operating special charges (credits)** | **$(73)** | **$266** | | Nonoperating: | | | | Nonoperating unrealized losses on investments, net | $13 | $8 | | Nonoperating debt extinguishment and modification fees | $20 | $20 | | **Total nonoperating special charges and unrealized losses on investments, net** | **$33** | **$28** | - The **$73 million** net gain in Q3 2025 operating special charges was primarily due to **$75 million** in gains from aircraft sale-leaseback transactions[69](index=69&type=chunk) - A **significant $561 million** special charge was recorded in the nine months ended September 30, 2025, related to a labor contract ratification bonus for flight attendants[70](index=70&type=chunk) [Effective Tax Rate](index=19&type=section&id=Effective%20Tax%20Rate) United's effective tax rate for Q3 2025 was **24.4%**, a slight decrease from **25.0%** in Q3 2024, primarily due to a release of valuation allowance related to realized capital gains Effective Tax Rate Summary | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended Sep 30 | 24.4% | 25.0% | | Nine Months Ended Sep 30 | 22.5% | 24.4% | - The decrease in the effective tax rate is mainly attributed to the release of a valuation allowance linked to realized capital gains[71](index=71&type=chunk) [Additional Company Information](index=7&type=section&id=Additional%20Company%20Information) [Earnings Call and Investor Update](index=7&type=section&id=Earnings%20Call%20and%20Investor%20Update) United Airlines will host a conference call on October 16, 2025, to discuss Q3 2025 financial results and Q4 2025 outlook - Conference call scheduled for October 16, 2025, at 9:30 a.m. CST/10:30 a.m. EST[18](index=18&type=chunk) - Live webcast and replay available at ir.united.com[18](index=18&type=chunk) - Investor Update with additional business outlook and guidance is furnished on Form 8-K and available at ir.united.com[20](index=20&type=chunk) [About United](index=7&type=section&id=About%20United) United Airlines, headquartered in Chicago, operates the most comprehensive global route network among North American carriers and is currently the **largest** airline in the world - United operates the most comprehensive global route network among North American carriers[22](index=22&type=chunk) - Currently the **largest** airline in the world[22](index=22&type=chunk) - Traded on Nasdaq under the symbol "UAL"[22](index=22&type=chunk) [Website and Social Media Information](index=7&type=section&id=Website%20and%20Social%20Media%20Information) United routinely posts important news and information on its corporate and investor relations websites, which serve as primary channels for disclosing key information to investors - Corporate website: www.united.com; Investor relations website: ir.united.com[24](index=24&type=chunk) - Investor relations website is a primary channel for disclosing key information, including financial guidance and SEC filings, to comply with Regulation FD[24](index=24&type=chunk) - Social media channels (e.g., X, LinkedIn) may also be used for company updates and could be deemed material information[24](index=24&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=7&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding future financial results, goals, plans, and strategies, which are subject to inherent risks, assumptions, and uncertainties - Forward-looking statements are based on current expectations and involve inherent risks and uncertainties[25](index=25&type=chunk) - Actual results could differ materially due to factors such as execution risks, fleet strategy changes, competitive industry, reliance on suppliers, economic/political conditions, operational disruptions, and regulatory actions[28](index=28&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement, except as required by law[27](index=27&type=chunk)

Core Insights - United Airlines reported a third-quarter profit exceeding Wall Street expectations, with pre-tax earnings of $1.3 billion and a pre-tax margin of 8.2% [1][2] - The company achieved diluted earnings per share of $2.90 and adjusted diluted earnings per share of $2.78, surpassing guidance of $2.25 to $2.75 [1][6] - Total operating revenue increased by 2.6% year-over-year to $15.2 billion, driven by a growing base of brand-loyal customers [1][2] Financial Performance - Third-quarter pre-tax earnings were $1.3 billion, with an adjusted pre-tax margin of 8.0% [1][6] - Total operating revenue for the quarter was $15.2 billion, reflecting a 2.6% increase compared to the same period last year [1][6] - The company expects fourth-quarter adjusted diluted earnings per share to be between $3.00 and $3.50 [1] Customer Experience - United Airlines is investing over $1 billion in customer experience enhancements, including seatback screens and Starlink installations [3][4] - Customer satisfaction with the inflight entertainment system has increased by 15 points since Q3 2022 due to upgrades in the narrowbody fleet [3][4] - The airline's completion factor for the third quarter was the highest in its history, carrying over 48 million customers [4][12] Operational Excellence - United operated its largest daily mainline schedule with 2,940 flights, achieving the lowest third-quarter cancellation rate in its history [1][4] - The airline's operational reliability is a key factor in building brand loyalty, with on-time departures ranking first or second at six of its seven hubs [4][12] - The company has seen a 7.2% increase in capacity compared to Q3 2024 [6][29] Revenue Sources - Premium cabin revenue rose by 6% year-over-year, while loyalty revenue increased by 9% [2][6] - Basic Economy revenue grew by 4%, and cargo revenue increased by 3% during the third quarter [2][6] - The company anticipates the fourth quarter of 2025 to have the highest total operating revenue for a single quarter in its history [2] Network Expansion - United announced new summer 2026 flights to several international destinations, reinforcing its position as the largest carrier across the Atlantic [5][12] - The airline is expanding both its international and domestic networks, adding new routes and increasing flights to popular destinations [12][29] Employee and Community Engagement - United Airlines has been recognized as a leading employer in various categories, highlighting its commitment to employee satisfaction [19] - The company has engaged in community service initiatives, including meal packaging events and disaster relief efforts [12][19]

Core Insights - The company has guided for Q3 EPS to be between $2.25 and $2.75, indicating positive financial expectations [1] - There are improving booking trends and a double-digit acceleration in business demand, suggesting a robust market environment [1] - Domestic yield is stabilizing, which may contribute to overall financial health and performance [1]

Core Viewpoint - United Airlines is expected to report strong earnings, with analysts predicting an adjusted EPS of $2.64 and revenue exceeding $15 billion, following a positive trend set by Delta Airlines [1][2]. Group 1: Earnings Expectations - Analysts are closely watching United Airlines to see if it can replicate the strong results reported by Delta Airlines, which surpassed expectations in the third quarter [2]. - The airline industry has seen a reduction in overcapacity, which has restored pricing power for carriers, potentially benefiting United Airlines [3]. Group 2: Market Position and Strategy - United Airlines, similar to Delta, relies heavily on its premium product offerings, particularly in the front cabin, which has shown continued strength in international routes [4][5][6]. - The company has a robust international network, which is expected to bode well for its performance [6]. Group 3: Consumer Sentiment and Market Conditions - There is a focus on consumer sentiment, with indications of less uncertainty among consumers as the holiday booking season approaches [9][10]. - The ongoing U.S. government shutdown and geopolitical tensions, particularly between the U.S. and China, may impact the aviation sector [7][8]. Group 4: Trading Strategies - Options markets are pricing in a potential move of approximately 5.5% in United Airlines shares following the earnings report, indicating elevated implied volatility [12]. - A bullish trading strategy has been suggested, utilizing a broken wing call butterfly to capitalize on expected upward movement in share price [13][14][16]. - A neutral trading strategy, such as a short iron condor, is also proposed to take advantage of high option premiums due to event risk, with break-even points set for minimal movement in share price [18][20][21].

Core Insights - United Airlines is set to report its third quarter earnings, with expectations of operating revenue reaching $15.28 billion, a 3% increase year-over-year, and adjusted EPS of $2.66 [1] - The airline's performance will be compared to Delta's recent results, which showed a significant improvement in premium and corporate travel [2] Financial Performance - United's operating revenue for the last quarter was a record $15.2 billion, driven by premium cabin and cargo revenue [2] - The airline is guiding its full-year EPS range to $9.00 - $11.00 [2] Operational Challenges - Earlier in the year, United faced operational issues at Newark Liberty Airport, one of its largest hubs, due to staffing shortages and air traffic control (ATC) problems [3][4] - Recent improvements have been noted, with Newark's on-time performance matching that of LaGuardia and JFK airports [3] Industry Context - The airline industry is currently facing concerns regarding ATC staffing due to a potential government shutdown, which has already caused significant delays at various airports [5][6] - Delta's CEO indicated that while ATC staffing is not currently affecting operational performance, it could become a concern if the shutdown persists [6]

Core Insights - United Airlines has significantly outperformed the industrial sector and other airlines, with a year-to-date increase of approximately 61-62% [2][9] - JetBlue is identified as the laggard in the airline industry, which is facing similar cost and demand factors [3] Technical Analysis - Recent price action for United Airlines shows a stabilization around the $93 level, which has previously acted as a support area [5] - A notable trend line was broken, leading to a new moderately sloping trend line, indicating a shift in price dynamics [4] - The expected price movement for United Airlines by November 21st is projected to be within a 13% range, with a low end around $93 and a high end at approximately $121.60 [8] Options Strategy - A complex options strategy is proposed, combining a short put vertical and a bullish call calendar to capitalize on potential price movements while managing risk [11][13] - The strategy involves selling an out-of-the-money put vertical and a call calendar, allowing for a credit collection that finances the bullish position [14] - The break-even point for this strategy is set at approximately $99.80, providing a cushion of about 4% below the current share price [15][16]

Market Overview - U.S. stock futures indicate a positive opening on October 15, 2025, driven by hopes for Federal Reserve interest rate cuts and a strong start to the Q3 earnings season [1] - Major U.S. indexes show a broadly upward trend in premarket trading, with Dow Jones Industrial Average futures up by 0.4% to 0.51%, S&P 500 futures climbing by 0.6% to 0.8%, and Nasdaq 100 futures leading with gains of 0.8% to 1% [2] Recent Market Performance - On October 14, 2025, the S&P 500 ended down 0.2%, and the Nasdaq Composite dropped 0.8%, while the Dow Jones Industrial Average closed 0.4% higher, reflecting market volatility influenced by U.S.-China trade tensions [3] Key Market Drivers - Federal Reserve Chair Jerome Powell's dovish comments regarding potential interest rate cuts have significantly boosted market optimism, with expectations for a quarter-point rate cut as early as this month [4] - The Q3 earnings season has started strong, with Bank of America and Morgan Stanley reporting better-than-expected results, leading to premarket stock increases of 4% and 4.5%, respectively [5] Upcoming Earnings Reports - Investors are anticipating earnings reports from notable companies such as Abbott Laboratories, PNC Financial Services, United Airlines, Kinder Morgan, Progressive Corp, and Synchrony Financial, which will provide further insights into corporate health and economic trends [6] Geopolitical Factors - U.S.-China trade tensions remain a significant source of market uncertainty, with recent comments from President Trump and sanctions imposed by China on U.S. subsidiaries contributing to market volatility [7] Economic Data Delays - The ongoing U.S. government shutdown has delayed the release of critical economic data, including the Consumer Price Index, which is now scheduled for October 24, potentially impacting market sentiment [9] Sector Developments - The technology and semiconductor sectors are experiencing notable movements, with ASML Holding shares up 4.5% due to strong Q3 bookings, while Nvidia, Intel, Broadcom, and ON Semiconductor also see gains [10] - Tesla shares are up around 1% in premarket trading, and AMD shares jumped 3% following Oracle's announcement to deploy 50,000 AMD AI chips [11] Commodities Update - Gold prices have reached a record high of approximately $4,219.80 per ounce, driven by optimism for rate cuts and ongoing trade tensions, while WTI crude oil futures hover near $58.75 per barrel [12]

Airline Industry - United Airlines is expected to report positive earnings, following a relatively strong report from Delta Airlines, although the overall market is cautious about the broader airline sector's performance [1][2] - The airline industry has faced challenges due to overcapacity in the main cabin market, but there are signs of improvement in demand for both Delta and United [2][3] - The performance of discount airlines like Southwest, Frontier, and Spirit remains uncertain as they struggle with overcapacity, while United and Delta have effectively managed their cabin segmentation [3][4] Transportation Sector - U.S. companies are experiencing near 10-year low inventory levels, impacting various segments of the transportation sector, particularly container shipping [5][6] - The reduction in inventory levels is linked to companies attempting to manage costs amid tariff discussions, leading to weak freight demand despite some positive trends in industrial production [7][9] - The freight transport sector is anticipated to improve as economic activity picks up, especially with new plant constructions in the U.S., although significant demand recovery may not occur until 2026-2027 [8][9] Trucking Industry - The administration's efforts to remove approximately 200,000 non-domiciled CDL drivers from the market may have limited impact on trucking capacity, as many of these drivers are seasonal or inactive [10][11][13] - The trucking market remains balanced, with low rates and profitability, necessitating a demand catalyst to initiate a new rate cycle [14] - The Dow theory remains relevant, suggesting that movements in the Dow Jones index and the Dow transportation index can signal broader economic trends [15]

The carrier's shares have been under pressure recently but its third-quarter report could get them back on the right flight path. ...

上周，美国运输部提议禁止中国航空公司飞越俄罗斯往返美国的航线，并表示飞行时间的减少使美国航 空公司处于不利地位。 (责任编辑：宋政 HN002) 【免责声明】本文仅代表作者本人观点，与和讯网无关。和讯网站对文中陈述、观点判断保持中立，不对所包含内容 的准确性、可靠性或完整性提供任何明示或暗示的保证。请读者仅作参考，并请自行承担全部责任。邮箱： news_center@staff.hexun.com 格隆汇10月15日｜美国特朗普政府此前提议禁止中国航空公司使用途经俄罗斯领空的路线往返美国。美 国联合航空敦促将禁令扩大至国泰航空，以及其他以香港为基地的航空公司。 内地主要航空公司促请放弃禁止飞越俄罗斯的计划，称将增加飞行时间、提高机票价格，并可能扰乱一 些航线。东航表示，此举可能会使其部分最重要航线的飞行时间延长2至3个小时，大大增加错过转机的 风险，并增加燃油消耗。国航及南航表示，这项决定将对美国和中国的大量乘客产生不利影响。南航预 计，至少有2800名原定于11月至12月假期高峰期间出行的乘客需要重新订票，这将危及他们的旅行计 划。 ...