United Airlines (UAL) 3Q 2025 earnings

United Airlines Expects Strong Earnings Despite Challenges

United Airlines has forecast higher-than-expected earnings for the fourth quarter, following a rocky start to 2025. The carrier expects to earn between $3 and $3.50 per share for the last three months of the year, exceeding analysts’ estimates of $2.86 per share. This positive outlook comes after the airline expanded its flying capacity by 7% in the third quarter, despite its rivals scaling back their growth plans due to a glut of flights and low fares.

The airline’s unit passenger revenue fell 3.3% for domestic travel and 7.1% for international in the third quarter. However, sales from its loyalty program rose 9%, and the carrier expects earnings before interest, taxes, depreciation, and amortization from the program to double by the end of the decade. According to CEO Scott Kirby, the loyalty program is just beginning to realize its full potential, and the airline is making significant investments to enhance customer experience.

Investing in Customer Experience

United Airlines has been investing in new technology, such as complimentary in-flight Wi-Fi, refreshed cabins, and new lounges, to attract and retain loyal customers. The airline has also expanded its global network with far-flung destinations like Greenland and Mongolia. As a result, premium-cabin revenue, which includes first class and other roomier seats, rose 6% in the third quarter. Additionally, sales from no-frills basic economy increased 4% year over year.

The airline’s growth plan has been defended by CEO Scott Kirby, who believes that the investments made over the past decade have allowed United to win and retain brand-loyal customers. This has led to economic resilience, even with macroeconomic volatility, and significant upside as the economy and demand improve in the fourth quarter. Despite beating earnings expectations, United’s revenue fell short of estimates, with $15.23 billion in revenue for the third quarter, up 2.6% from last year.

Financial Performance

United’s net income fell 1.7% to $949 million or $2.90 per share in the third quarter. Adjusting for one-time items, the airline posted income of $909 million or $2.78 per share. The carrier is vying with Delta Air Lines to win over more affluent travelers who splurge on seats. With its expanded global network and enhanced customer experience, United Airlines is well-positioned to achieve its earnings expectations and continue to grow in the competitive airline industry.