Sometimes good things can come at surprising times. That was the case for United Airlines, which on Wednesday’s (April 16) first quarter 2025 earnings call posted its best first-quarter results in five years.
Despite headwinds from a persistently volatile macroeconomic environment, United Airlines was able to find relatively stable tailwinds due to earlier and ongoing investments in technology and process innovations.
“Our multiyear plan has delivered industry-leading margins in the good times, and now we’re proving it can do the same in uncertain ones,” said United CEO Scott Kirby to investors, giving credit to the company’s post-pandemic recovery plan and execution on that vision.
In Q1 2025, United reported $13.2 billion in operating revenue, a 5.4% increase over the prior year. The company’s adjusted pretax margin hit 3%, a 3.6-point year-over-year gain, positioning United at the front of the U.S. airline pack.
Still, in a nod to the uncertainty defining today’s landscape, United Airlines took the atypical step of issuing two possible earnings scenarios for its 2025 outlook, warning that a recession could impact the more preferable option by sending the airline’s full-year earnings per share to as little as $7.
Other airlines have been similarly concerned about the macro turbulence, with Delta choosing last week not to reaffirm its full year 2025 financial guidance, deciding instead to provide an update later in the year. Three more airlines — American Airlines, Southwest Airlines and United — made similar comments about the macroeconomic environment and revised their outlooks downward or said they expected earnings to come in at the lower end of their guidance.
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While most headlines may focus on United’s revenue beats, the airline’s most strategic decision might be what it’s cutting. Beginning in Q3, United will trim 4 percentage points of its scheduled domestic capacity. It’s a calculated move aimed at protecting yield and preserving aircraft utilization during off-peak windows. The airline will also retire 21 aircraft earlier than planned — a nod to the long game of fleet modernization and efficiency.
This capacity realignment isn’t about contraction, but precision. With a record 450,000 customers flown daily on average in Q1 and strong forward bookings in premium cabins and international segments (up 17% and 5%, respectively), United is repositioning itself for profitability over volume.
Revenue from premium cabin seating surged 9.2% year over year, while business travel revenue increased 7.4%. In a quarter where many carriers are still chasing leisure travelers, United is leaning into its high-yield segments with more conviction.
And in an industry where disruption can erase loyalty overnight, United’s Q1 operational metrics are telling. The airline posted its best first-quarter on-time arrival and departure rates since 2021 and cut its seat cancellation rate in half compared to Q1 2024. United Express clocked a record 21 days of 100% flight completion, more than double its previous best.
Beyond performance metrics, the carrier is betting on reliability and digital integration as key customer experience drivers. Enhancements to the United app, including more detailed gate connection data and Spanish language support, led to an 85% digital check-in rate and a 10% jump in customer satisfaction scores year over year.
The company is also doubling down on tech infrastructure, announcing FAA-certified installation of Starlink WiFi on its United Express fleet and launching new in-flight features like Control Tower, an immersive view of real-time airfield operations. United expects to offer the fastest in-flight WiFi in the U.S. by year end.
Read more: Airlines and Retailers Signal Consumer Pullback Will Cause Q1 Turbulence
There’s no sugarcoating the broader picture: the airline industry remains exposed to macroeconomic volatility, geopolitical unrest, and shifting travel demand. But United’s Q1 results suggest that the company is entering this period with unusually solid footing — and a clear understanding of what drives both profitability and loyalty.
The company expects to be awarded six new gates at its home base in Chicago O’Hare by the fall, a recognition of its continued growth and local investment. At the same time, it’s breaking ground on a $315 million tech operations complex in Orlando and has opened a new training facility in Houston.
