United Report Pre-Tax Earnings of $478 Million in Q1-2025
Despite a challenging macroeconomic environment, the US carrier United Airlines (UAL) on Tuesday reported its best first-quarter financial results in the past five years.
With a first quarter profit, the UAL posted record revenue of $13.2 billion, and total revenue per available seat mile (TRASM) growth of 0.5% y-o-y. The company had first quarter pre-tax earnings of $478 million, with a pre-tax margin of 3.6%; and adjusted pre-tax earnings of $391 million, with an adjusted pre-tax margin of 3%.
The company also achieved diluted earnings per share of $1.16 and adjusted diluted earnings per share of $0.91, within the guidance range provided at the start of the quarter.
The airlines continued to build brand loyalty in the first quarter and saw strong growth across its diversified revenue streams. Premium cabin revenue rose 9.2%, business revenue was up 7.4% and revenue from basic economy was up 7.6% y-o-y.
International travel remained strong, with Atlantic RASM up 4.7% and Pacific RASM up 8.5% year-over-year. Other revenue streams such as cargo and loyalty remained resilient and were up 9.7% and 9.4% y-o-y, respectively. Forward bookings over the last two weeks have remained stable, with premium cabins up 17% and international up 5% year-over-year.
United believes its proven ability to win brand-loyal customers is a competitive advantage and will make the airlines resilient in any economic environment.
In response to the current demand environment, UAL is removing 4 percentage points of scheduled domestic capacity starting in the third quarter of 2025 and is also continuing to make prudent adjustments to the utilisation rate of its fleet, including ongoing reductions in off-peak flying on lower demand days.
The airline expects to continue this approach into the fourth quarter of 2025. Additionally, as previously announced, United will retire 21 aircraft earlier than previously planned.
On Track
UAL CEO Scott Kirby said that their strategy coming out of the COVID pandemic was simple: Build the best airline in the world to attract brand-loyal customers and the people of United Airlines have executed and built that airline.
“United Next is on track and will continue to execute our multiyear plan that has allowed us to thrive in any demand environment. It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times. Our ability to win brand-loyal customers and the resiliency of our business is a competitive advantage, and we are accelerating our investments in our product, service, technology and experience to further expand that lead,” he added.
Ongoing investments include the six additional gates at Chicago O’Hare expected to be awarded to UAL this fall based on a preliminary assessment by the Chicago Department of Aviation, due to United’s continued growth and commitment to Chicago and O’Hare.
The airline is also expanding at San Francisco and plans to have the fastest WiFi in the sky with Starlink installed on its entire United Express fleet by the end of this year. Customers will also continue to benefit from our technology investments such as new, more detailed connection information in the United app to help customers make their connection, and Spanish translations that led to increased digital check-ins for international travel.
United’s operation started 2025 stronger than any previous year since 2021. In the first quarter the airline flew the largest schedule by available seat miles in its history, carrying a record of over 450,000 customers per day on average.
The airlines achieved the best on-time arrival and departure rate for a first quarter since 2021 and cut its seat cancellation rate in half compared to the first quarter of 2024. Running a safe, reliable operation continues to be United’s top priority.
