Improved geopolitical outlook gives United Airlines summer momentum
July 17, 2025
United Airlines has reported a significant uptick in demand for the beginning of July as a result of an improving geopolitical and macroeconomic picture, as the carrier released its second-quarter 2025 results.
The airline expects “less geopolitical and macroeconomic uncertainty” in the second half of the year, citing a “demand inflection beginning in early July with a 6 point acceleration in booking demand”.
Its second-quarter profit was ahead of expectations, with both earnings and its pre-tax margin improving in the first half of 2025 versus the first half of 2024.
Year-on-year, total operating revenue grew 1.7%, to $15.2 billion, however profits fell 26.4%, though still to a healthy $973 million.
The continued popularity of premium travel sustained United’s performance.
Premium cabin revenue rose 5.6% year-on-year, while revenue from basic economy rose 1.7% over the same period.
United hails a ‘less uncertain world’ driving positive figures
United Airlines’ financial results weren’t a glowing report for the carrier. Nevertheless, it sees reasons to feel positive about the rest of the year.
“United saw a positive shift in demand beginning in early July, and, like 2024, anticipates another inflection in industry supply in mid-August,” says CEO Scott Kirby. “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.”
United reported a 5.9% increase in capacity for the second quarter of 2025 compared to the same period last year, marking the largest quarterly schedule in the company’s history as measured by available seat miles.
Domestic and Canadian routes saw a 6.6% boost in capacity, while international routes grew by 5.3%.
The airline’s Newark Liberty International Airport (EWR) hub stood out in June, regaining its position as the most punctual airport operation among New York City-area airports.
United credited this performance to the early reopening of Newark’s second runway, and FAA-imposed hourly flight caps.
Improvements at Newark after a tricky spring
It follows a decision in May to impose significant cuts to its network at Newark, citing ongoing air traffic congestion and operational inefficiencies.
Kirby said at the time that “long-simmering FAA challenges boiled over” at EWR after technology that FAA air traffic controllers rely on to manage aircraft in and out of Newark failed, resulting in dozens of diverted flights, and hundreds of delayed and cancelled flights.
United embarked on its largest international expansion to date in the last quarter, launching flights to eight new destinations including Greenland, Mongolia, Portugal’s Madeira and Faro, and cities in Mexico, Senegal, Spain, and Italy.
It also announced plans to launch service to Bangkok, Ho Chi Minh City, and Adelaide, subject to regulatory approval.
Additional routes were added to existing international destinations, along with 16 new domestic and Canadian routes.
Kirby said: “Our second-quarter performance was more proof that the United Next strategy is working.
How does it compare with the competition?
“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.”
Delta Air Lines reported its financial results for the June quarter last week, showing the Atlanta-based carrier had generated record revenue of $16.6 billion on a 13% operating margin, generating $1.8 billion in pre-tax profit.
The last of the big three, American Airlines, is due to report its results next week.
