United Airlines Tops Q2 Earnings Estimates on Low Fuel Cost

United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.UAL's second-quarter 2025 adjusted earnings per share (EPS) (excluding 90 cents from non-recurring items) of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.Cargo revenues grew 3.8% year over year to $430 million. Revenues from other sources rose 8.8% year over year to $970 million.UAL’s diverse revenue sources contributed to its second-quarter results. These include premium cabin revenues, which went up 5.6% year over year, revenue from Basic Economy (up 1.7% year over year), cargo revenues (up 3.8%) and loyalty revenues (up 8.7%).United Airlines Holdings Inc Price, Consensus and EPS Surprise United Airlines Holdings Inc price-consensus-eps-surprise-chart | United Airlines Holdings Inc QuoteUAL’s chief executive officer, Scott Kirby, stated, "Our second-quarter performance was more proof that the United Next strategy is working. I am extremely proud of the team for executing a strong operation and navigating through a volatile macroeconomic period, while still growing earnings and pre-tax margin for the first half of the year. Importantly, United saw a positive shift in demand beginning in early July, and, like 2024, anticipates another inflection in industry supply in mid-August. The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year."Other Details of UAL’s Q2 Earnings ReportBelow, we present all comparisons (in % terms) with the second quarter of 2024 figures unless otherwise stated.Airline traffic, measured in revenue passenger miles, grew 4.5%. Capacity, measured in available seat miles, expanded 5.9%. Although traffic improved year over year, it failed to outpace capacity expansion. As a result, the consolidated load factor (percentage of seats filled by passengers) declined 1.1 points on a year-over-year basis to 83.1%.  We had expected the consolidated load factor to be 79.5%.Consolidated passenger revenue per available seat mile (a key measure of unit revenues) inched down 4.5% year over year. Total revenue per available seat mile decreased 4% year over year. The average yield per revenue passenger mile fell 3.2% year over year to 19.74 cents. The average aircraft fuel price per gallon fell 15.3% year over year to $2.34. Fuel gallons consumed were up 4.7% year over year.Operating expenses (on a reported basis) increased 6.5% year over year to $13.9 billion. Consolidated unit cost or cost per available seat mile, excluding fuel, third-party business expenses, profit-sharing and special charges, inched up 2.2% year over year to 12.36 cents.UAL exited the second quarter with cash and cash equivalents of $9.35 billion compared with $9.37 billion at the prior-quarter end. Long-term debt, finance leases and other financial liabilities were $20.8 billion compared with $24.4 billion at the first-quarter end.UAL repurchased $0.2 billion of shares in the second quarter of 2025. UAL generated $1.13 billion of free cash flow in the June quarter.UAL’s OutlookUAL anticipates less geopolitical and macroeconomic uncertainty in the second half of 2025, with demand inflection beginning in early July with a 6-point acceleration in booking demand.For third-quarter 2025, UAL anticipates adjusted EPS between $2.25 and $2.75. The Zacks Consensus Estimate of $2.70 lies within the guidance.For 2025, UAL now expects adjusted EPS between $9.00 and $11.00. The Zacks Consensus of $10.07 lies within the updated guidance.The updated 2025 EPS guidance comes in contrast with UAL’s prior 2025 dual EPS guidance unveiled during first-quarter 2025 (for a stabilized environment, 2025 adjusted EPS is expected to be between $11.50 and $13.50; for a recessionary environment, 2025 adjusted EPS is expected to be between $7 and $9).UAL expects adjusted capital expenditures to be less than $6.5 billion.UAL's Zacks RankCurrently, UAL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks