The stock of United Airlines (UAL) is down 4% after the carrier reported mixed financial results for this year’s second quarter and offered new forward guidance.
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The Chicago-based airline reported earnings per share (EPS) of $3.87, which was ahead of the $3.81 expected among analysts. However, revenue of $15.24 billion came in below Wall Street forecasts of $15.35 billion. Sales were up only 1.7% from a year earlier.
Despite the mixed print, United Airlines’ management team issued new guidance for this year, saying that travel demand is picking up after a difficult start to 2025. The carrier now expects earnings of $9 to $11 per share. The midpoint of that guidance matches the $10 a share that analysts had expected.
United Airlines’ earnings per share. Source: Main Street Data
‘Less Uncertain’
For the current third quarter, United Airlines expects earnings of $2.25 to $2.75 a share, which is also within analysts’ expectations. “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,” said United CEO Scott Kirby in the company’s earnings release.
Travel demand, particularly on domestic U.S. flights, has proven to be weaker than airline executives had expected at the start 2025, sending airfares lower as a result. United Airlines said that operational constraints at Newark International Airport, a major hub for the company, hurt its second-quarter pretax margin by 1.2 percentage points.
The Federal Aviation Administration (FAA) cut flights at Newark in May of this year because of air traffic control staffing shortages and various technical issues. UAL stock is down 9% this year.
Is UAL Stock a Buy?
United Airlines stock has a consensus Strong Buy rating among 10 Wall Street analysts. That rating is based on 10 Buy recommendations issued in the last three months. The average UAL price target of $96.20 implies 8.74% upside from current levels. These ratings are likely to change after the company’s financial results.
