Chicago: United Airlines reported stronger-than-expected third-quarter earnings, but revenue fell short of Wall Street expectations as the carrier grappled with weaker unit sales and an oversupply of flights.
The airline said third-quarter capacity rose more than 7% compared to the same period last year, driven by expanded international routes and domestic flight additions. However, unit revenue — a key measure of how much the airline earns per seat per mile — declined for both domestic and international travel, reflecting softening demand and competitive pricing pressures.
United posted a solid performance in its premium-cabin segment, where revenue from first-class and extra-legroom seats grew 6% year-over-year. Sales from its budget “basic economy” class also increased 4% from the previous year, underscoring continued demand from price-sensitive travelers.
Looking ahead, United projected adjusted earnings of $3 to $3.50 per share for the fourth quarter, exceeding analysts’ expectations. The airline said it remains focused on maintaining profitability despite rising operating costs and fluctuations in travel demand.
Earlier this year, United and several other major US carriers trimmed their annual earnings forecasts amid uneven passenger demand, ongoing tariff uncertainties, and a surplus of available flights that has pressured ticket prices.
While revenue growth remains below expectations, United’s robust cost controls and focus on high-margin products have helped sustain its profit outlook. Industry analysts say the carrier’s cautious optimism reflects a broader trend across US aviation, where airlines are balancing expansion with market discipline.
