United Airlines Holdings, Inc. reported fourth-quarter and full-year 2025 results that exceeded Wall Street expectations and landed within management’s prior guidance.
For FY2025, diluted earnings per share were $10.20, up 8% year over year, with adjusted diluted EPS of $10.62. Fourth-quarter diluted EPS totaled $3.19, while adjusted EPS was $3.10, within the guided range of $3.00 to $3.50.
Full-year operating revenue rose 3.5% year over year to a record $59.1 billion, supported by continued demand for premium and loyalty offerings. The quarter included a disclosed $250 million pre-tax earnings impact related to the U.S. government shutdown.
#Financial Performance Breakdown
Fourth-quarter operating revenue reached $15.4 billion, up 4.8% year over year, marking the highest quarterly revenue in the company’s history. Capacity increased 6.5%, while total revenue per available seat mile declined 1.6%, reflecting pricing and mix dynamics amid higher capacity.
Pre-tax earnings for the quarter were $1.3 billion, representing an 8.6% pre-tax margin, or 8.5% on an adjusted basis. For the full year, United generated $4.3 billion in pre-tax earnings and $4.6 billion on an adjusted basis, translating to a 7.3% GAAP pre-tax margin and a 7.8% adjusted margin.
Cash generation remained a key feature of the year. Operating cash flow totaled $8.4 billion, and free cash flow, a non-GAAP metric defined by management, was $2.7 billion.
Year-end liquidity stood at $15.2 billion, while total debt, including finance leases and other obligations, was reported at $25.0 billion. Net leverage ended the year at 2.2x, unchanged from the prior year. Share repurchases totaled $640 million for FY2025, including $29 million in the fourth quarter.
#Strategic and Operational Highlights
Operationally, United carried a record 181 million passengers in 2025 and operated the largest mainline schedule in its history. The airline reported the lowest seat cancellation rate among large U.S. network carriers and ranked second in on-time departures for the year.
Premium revenue increased 11% for the full year, while loyalty revenue grew 9%, reflecting continued traction with higher-yield customer segments.
The company continued investing in fleet and customer experience initiatives, adding 82 new aircraft in 2025 and updating 119 aircraft with its Signature Interior. Nearly all dual-cabin United Express aircraft are now equipped with Starlink Wi-Fi, with mainline installations beginning and expected to accelerate in 2026.
United also announced plans to take delivery of more than 100 narrowbody aircraft and approximately 20 Boeing 787 widebody aircraft in 2026, alongside airport infrastructure upgrades at key hubs including Washington Dulles and Houston.
#Management Commentary and Outlook
Management attributed the quarter’s performance to gains among brand-loyal customers and sustained premium demand. CEO Scott Kirby highlighted that the fourth quarter produced the highest revenue and the strongest unit revenue of the year, indicating revenue momentum entering 2026.
Management stated it expects to generate a similar level of free cash flow in 2026 as in 2025, while continuing to invest in fleet growth, international network expansion, and customer-facing technology.
#Investor Takeaway and Risk Framing
United’s Q4 and FY2025 results point to steady earnings growth, solid cash generation, and continued execution on its premium-focused strategy, even amid one-time disruptions such as the government shutdown.
At the same time, modest unit revenue pressure and elevated capital commitments underscore the importance of sustained demand and operational discipline.
The reported results reflect a single period in an industry sensitive to economic cycles, cost volatility, and external shocks, which remain key variables for investors to monitor.