A United Airlines Boeing 737-MAX 8 departs from San Diego International Airport on its way to New York on August 24, 2024.
Kevin Carter | Getty Images
united airlines After a tough start to 2025, the company on Wednesday expected fourth-quarter profits to beat expectations.
The company expects to earn between $3 and $3.50 per share in the final three months of the year, compared with analysts’ expectations of $2.86 per share.
United Airlines is expanding capacity, but rivals are scaling back some of their growth plans after a glut of flights this year weighed on fares. The company increased its capacity by 7% year over year in the third quarter. Passenger revenue for the three months ending September 30th was down 3.3% for domestic travel and 7.1% for international flights. Sales increased by 9% thanks to a lucrative loyalty program.
United Airlines CEO Scott Kirby defended the airline’s growth plans in an interview last month, saying the airline was winning loyal customers through its network, new technology such as free in-flight Wi-Fi, refreshed cabins and new lounges.
“Thanks to nearly a decade of these investments and the excellent service of our employees, United Airlines has been able to attract and retain brand-loyal customers, provided economic resilience amid macroeconomic instability through the first three quarters of this year, and delivered significant upside in the fourth quarter as economics and demand improved,” Kirby said in a release Wednesday.
Still, in the third quarter, United Airlines reported lower-than-expected revenue but better-than-expected profits.
The following compares what United Airlines reported for the quarter ending September 30 with Wall Street expectations, based on estimates compiled by LSEG.
Earnings per share: $2.78 adjusted vs. $2.62 expected Revenue: $15.23 billion vs. $15.33 billion expected
United Airlines’ third-quarter revenue was $15.23 billion, an increase of 2.6% from $14.84 billion in the same period last year. Net income decreased 1.7% to $949 million, or $2.90 per share. Adjusted for debt and other one-time items, United reported profit of $909 million, or $2.78 per share.
Telecommunications carriers compete with: delta airlines It expanded its global network with far-flung destinations such as Greenland and Mongolia to attract wealthier travelers who would pay more for a seat. United Airlines said its premium cabin revenue, which includes first class and other spacious seats, rose 6% in the third quarter. United’s no-frills basic economy revenue is up 4% year over year.
Throughout the spring and early summer, United and other airlines lowered their revenue forecasts from the start of the year as passenger demand fell amid rising and falling tariffs and an oversupply of flights weighed on airfares.
