United Airlines (UAL) reported a standout first-quarter 2025 performance—its best Q1 showing in five years—highlighted by a return to profitability, solid revenue growth, and strong operational execution despite ongoing macroeconomic headwinds.

Total operating revenue rose 5.4% year-over-year to $13.2 billion, driven by increases across all segments. Passenger revenue climbed 4.8% to $11.86 billion, fueled by a 4.9% increase in capacity, 3.8% growth in passengers flown, and a 1.2% rise in yield. Cargo revenue surged 9.7% to $429 million, while other operating revenue advanced 10.5% to $923 million, boosted by credit card partnership income and loyalty program participation.

Profitability made a significant comeback, with operating income hitting $607 million, a sharp rise from $99 million a year ago. United swung to a net income of $387 million, compared to a net loss of $124 million in Q1 2024. Diluted earnings per share came in at $1.16, up from a loss of $0.38, and adjusted EPS was $0.91. Operating margins improved, with a 3.6% pre-tax margin and 3.0% adjusted pre-tax margin.

Cost management was another highlight. CASM fell 3.4%, aided by lower fuel costs, while CASM-ex edged up only 0.3%, showing solid cost discipline. Fuel expenses dropped to $2.7 billion, down from $2.95 billion last year. United generated $3.7 billion in operating cash flow and $2.3 billion in free cash flow, ending the quarter with $18.3 billion in available liquidity. Debt was trimmed by $1.0 billion, bringing net leverage to 2.0x.

Geographically, international routes outperformed domestic, particularly the Pacific region, which saw a passenger revenue increase of 8.9% and 11.0% more passengers thanks to strong demand in Japan and the South Pacific. The Atlantic also saw healthy growth, with PRASM up 4.7%. Domestically, while passenger revenue grew 3.8%, lower yields and a dip in load factors weighed on PRASM, which declined 3.9%.

Operationally, United achieved record-setting on-time performance and cancellation rates, contributing to its highest-ever first-quarter Net Promoter Score, up 10% YoY. Digital engagement remained strong, with 85% of customers checking in digitally and 83% using the mobile app for travel-related needs.

In terms of strategy, United continues investing in premium services, technology upgrades (such as Starlink WiFi, expected to roll out from May), and loyalty offerings. The airline took delivery of its 1,000th mainline jet and expanded operations at Chicago O’Hare with six new gates. Sustainability efforts also progressed, including a new investment in carbon capture startup Heirloom.

Looking ahead, United is maintaining a balanced outlook. For Q2 2025, the company guides for adjusted EPS between $3.25 and $4.25, and for the full year, expects $11.50 to $13.50, assuming a stable economy. A recession scenario could lower that range to $7.00 to $9.00. To align capacity with demand and maintain cost efficiency, United is reducing domestic capacity by 4 percentage points in the second half and accelerating the retirement of 21 aircraft.

In summary, United Airlines delivered a robust Q1 performance marked by strong revenue growth, a return to profitability, and record operational efficiency. Management’s focus on premium demand, international expansion, cost control, and loyalty-driven strategy positions the airline to weather macroeconomic uncertainties while pursuing long-term growth.