United Airlines (UAL) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered the best first-quarter financial performance in five years, with record revenue of $13.2 billion and a net income of $387 million, reversing a prior-year loss, despite a challenging macroeconomic environment.

• Pre-tax margin reached 3.6%, up 4.9 points year-over-year, and adjusted pre-tax margin was 3.0%.

• Brand-loyal customer gains, premium segment strength, and investments in customer experience, such as new clubs and Starlink Wi-Fi, drove resilience.

• Operational excellence led to record on-time departures, highest NPS, and low seat cancellation rates.

• Share repurchase program was active, with $451 million in shares repurchased year-to-date.

Financial highlights

• Operating revenue rose 5.4% year-over-year to $13.2 billion, with passenger revenue up 4.8% and cargo revenue up 9.7%.

• Net income was $387 million; adjusted net income was $302 million.

• Diluted EPS was $1.16, adjusted diluted EPS was $0.91, both within or exceeding guidance.

• Operating income surged to $607 million from $99 million year-over-year.

• Free cash flow exceeded $2 billion in Q1; operating cash flow was $3.7 billion.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance: $11.50–$13.50 in a stable environment, $7–$9 in a recession scenario.

• Q2 EPS expected between $3.25 and $4.25.

• Domestic capacity to be reduced by 4 points from original plan starting Q3 2025.

• Free cash flow for the year expected to approach $3 billion in base case, positive even in recession.

• Liquidity expected to remain strong, with $18.3 billion available at quarter-end.