United Airlines Holdings Inc. (NASDAQ:UAL) shares are trading lower premarket on Thursday. After the market closed on Wednesday, the company reported mixed third-quarter results.
Revenue rose 2.6% year-over-year (Y/Y) to $15.225 billion but missed the consensus estimate of $15.325 billion.
The airline company reported third-quarter adjusted EPS of $2.78, beating analyst estimates of $2.62 per share.
Premium cabin revenue was up 6% (Y/Y), and basic economy revenue climbed 4% Y/Y.
Loyalty revenue was up 9% Y/Y, and cargo revenue rose 3% Y/Y in the quarter.
Capacity was up 7.2% on a year-over-year basis in the quarter.
TRASM (total revenue per available seat mile) was down 4.3% while CASM (cost per available seat mile) fell 2.8% Y/Y.
Buyback and Balance Sheet
The company repurchased shares worth $19 million in the third quarter of 2025.
United generated $1.2 billion in operating cash flow but used $153 million in adjusted free cash outflow.
The company ended the period with cash and cash equivalents of $6.73 billion.
Management Commentary
CEO Scott Kirby stated, “We’ve invested in customers at every price point: Seatback screens, an industry-leading mobile app, extra legroom, a lie-flat United Polaris seat, and fast, free, reliable Starlink on every plane by 2027.”
“Those investments over almost a decade, combined with great service from our people, have allowed United to win and retain brand-loyal customers, leading to economic resilience even with macroeconomic volatility through the first three quarters of the year and significant upside as the economy and demand are improving in the fourth quarter.”
Outlook
The company expects fourth-quarter fiscal 2025 adjusted EPS of $3.00-$3.50, compared with the consensus estimate of $2.88.
United Airlines anticipates that the fourth quarter of 2025 will witness the highest quarterly operating revenue in its history, supported by improving economic conditions and demand.
It expects to record accruals of $250–$300 million in the fourth quarter of fiscal 2025.
It projects a year-end fleet of 244 Boeing 737 MAX and 59 Airbus A321neo/XLR aircraft.
Also, the airline plans to invest over $1 billion in customer experience in 2026.
Investors can gain exposure to the stock via the U.S. Global Jets ETF (NYSE:JETS) and First Trust Nasdaq Transportation ETF (NASDAQ:FTXR).
Price Action: UAL shares were trading lower by 1.49% to $102.50 premarket at last check Thursday.
Read Next:
Photo by FiledIMAGE via Shutterstock
