United Airlines delivered its best first-quarter results in five years, driven by stable tailwinds from technology and process innovations despite a volatile macroeconomic environment. The airline reported $13.2 billion in operating revenue, a 5.4% increase over the prior year, with an adjusted pretax margin of 3%, positioning it at the front of the US airline pack.
In a nod to uncertainty, United issued two possible earnings scenarios for its 2025 outlook, warning that a recession could impact full-year earnings per share as low as $7. Other airlines have also revised their outlooks downward or said they expected earnings to come in at the lower end of their guidance.
The airline’s most strategic decision is cutting 4 percentage points of scheduled domestic capacity starting from Q3, aimed at protecting yield and preserving aircraft utilization during off-peak windows. United will retire 21 aircraft earlier than planned as part of its long-game fleet modernization and efficiency efforts.
Despite macroeconomic headwinds, United leaned into high-yield segments with more conviction, seeing revenue surge in premium cabin seating (9.2% year over year) and business travel revenue increase (7.4%). The airline also posted industry-leading on-time arrival and departure rates since 2021 and cut its seat cancellation rate in half compared to Q1 2024.
United is betting on reliability and digital integration as key customer experience drivers, enhancing its app with more detailed gate connection data and Spanish language support, leading to an 85% digital check-in rate. The company also announced FAA-certified installation of Starlink WiFi on its United Express fleet and launched new in-flight features like Control Tower.
While the broader picture remains uncertain, United’s Q1 results suggest a solid footing with a clear understanding of what drives both profitability and loyalty. The airline expects to be awarded six new gates at its home base in Chicago O’Hare by fall and has opened a new training facility in Houston.
Source: https://www.pymnts.com/transportation/2025/covid-era-digital-investments-help-united-airlines-navigate-macro-turbulence