01—Abstract
Summary
Summary of the 10-Q filed October 16, 2025. Cited figures are marked; the original filing is the authoritative source.
United Airlines Holdings, Inc. (UAL) and its wholly-owned subsidiary United Airlines, Inc. filed a combined Form 10-Q for the quarter ended September 30, 2025.
For the third quarter, operating revenue rose 2.6% to $15.2 billiona (from $14.8 billion), operating expense rose 4.2% to $13.8 billion, and operating income fell to $1.40 billion from $1.57 billion. Net income was $949 million versus $965 million a year earlier, and diluted EPS was $2.90, flat with the prior year. For the first nine months of 2025, net income was $2.31 billion (up from $2.16 billion), diluted EPS was $7.02 (up from $6.49), and operating income was $3.33 billion (down from $3.59 billion).
Results include a $561 millionb special charge in the second quarter for a labor contract ratification payment after Association of Flight Attendants members voted against ratifying the tentative agreement, and $295 million of net special gains for the nine months, primarily from aircraft sale-leaseback transactions. Liquidity remained substantial, with $13.3 billion of unrestricted cash, cash equivalents and short-term investments at September 30, 2025, compared with $14.5 billion at December 31, 2024. Total debt, finance lease, operating lease and other financial liabilities were approximately $31.3 billion, including $5.2 billion due within 12 months.
Long-term debt, finance leases and other financial liabilities fell to $20.8 billionc from $25.2 billion, reflecting debt repayments of $4.2 billion in the nine months and the July 2025 redemption of $1.52 billion of MileagePlus notes. The company repurchased about 7.8 million shares for $612 million in the nine months, and total stockholders' equity increased to $14.3 billion. Operating cash flow was $7.1 billion for the nine months, roughly flat year over year, while net cash used in investing activities rose to $4.8 billion, mainly from higher purchases of short-term investments.
Capital expenditures were $4.0 billiond. The company reported passenger load factor of 84.4% for the quarter, a 0.9-point decline, and PRASM fell 5.0% as yield declined 4.0% against 6.2% growth in passengers. Credit ratings were BB+ (S&P), Ba2 (Moody's) and BB (Fitch), with Moody's and Fitch carrying positive outlooks.
02—Key points
Key Highlights
- Third-quarter 2025 operating revenue rose 2.6% to $15.2 billion, while operating income declined to $1.40 billion from $1.57 billion as operating expense grew 4.2%.
- Net income was $949 million for the third quarter versus $965 million a year earlier; diluted EPS was $2.90 in both periods.
- Nine-month net income increased to $2.31 billion from $2.16 billion, and diluted EPS rose to $7.02 from $6.49, despite a $561 million labor contract ratification charge recorded in the second quarter.
- Liquidity totaled $13.3 billion in unrestricted cash, cash equivalents and short-term investments at September 30, 2025, down from $14.5 billion at December 31, 2024; the company also had an undrawn $3.0 billion revolving credit facility.
- Long-term debt, finance leases and other financial liabilities declined to $20.8 billion from $25.2 billion after $4.2 billion of debt payments and the $1.52 billion redemption of MileagePlus notes in July 2025.
- The company repurchased about 7.8 million shares for $612 million in the nine months, with approximately $0.8 billion remaining under the share repurchase program as of October 9, 2025.
- Firm aircraft purchase commitments totaled $54.3 billion, and 25 Airbus A319 leases were converted to finance leases following an agreement to purchase the aircraft at lease end.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 16, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $15.22B$14.84B | +2.6% |
| Operating Expenses | $13.83B$13.28B | +4.2% |
| Operating Income | $1.40B$1.56B | −10.9% |
| Net Income | $949.00M$965.00M | −1.7% |
| EPS (Basic) | $2.93$2.93 | 0.0% |
| EPS (Diluted) | $2.90$2.90 | 0.0% |
| Shares Outstanding (Basic) | 323.70M329.00M | −1.6% |
| Shares Outstanding (Diluted) | 326.90M332.70M | −1.7% |
05—Questions
Frequently Asked Questions
How did United Airlines perform financially in the third quarter of 2025?
Operating revenue rose 2.6% to $15.2 billion, driven by passenger revenue growth of 1.9% and other operating revenue growth of 13.2%. Operating expense increased 4.2% to $13.8 billion, so operating income fell to $1.40 billion from $1.57 billion. Net income was $949 million, compared with $965 million in the prior-year quarter.
What drove the labor-related charge in 2025?
The company recorded a $561 million special charge in the second quarter for a one-time payment tied to a tentative agreement with flight attendants represented by the Association of Flight Attendants. Those members voted against ratification on July 29, 2025, and negotiations are expected to restart on October 29, 2025.
How strong is the company's liquidity and debt position?
At September 30, 2025, unrestricted cash, cash equivalents and short-term investments totaled $13.3 billion, and the company had $3.0 billion undrawn on its revolver. Total debt, finance lease, operating lease and other financial liabilities were about $31.3 billion, of which $5.2 billion comes due in the next 12 months. The company was in compliance with its debt covenants.
What did the company do with its capital in 2025?
In the nine months ended September 30, 2025, the company repurchased about 7.8 million shares for $612 million and made $4.2 billion of debt, finance lease and other financial liability payments. Capital expenditures, net of deposit returns, were $4.0 billion, and the company had firm aircraft purchase commitments of $54.3 billion.
What are the main risks and external factors the company highlights?
The company cites volatile fuel prices, labor market and supply chain constraints, rising maintenance costs, aircraft delivery delays, changes in interest rates, geopolitical conflicts including the suspension of overflights in Russian airspace, and government regulation as factors that could affect results. It also notes that its credit ratings are BB+ at S&P, Ba2 at Moody's and BB at Fitch, with Moody's and Fitch carrying positive outlooks.
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