United Airlines Posts Record Revenue And Raises Profit Outlook, But Delta Air Lines Was More Profitable

Key Points:

• United Airlines reported second-quarter operating revenue of $17.7 billion, a 16% increase year-over-year, and adjusted earnings per share of $1.99, beating Wall Street expectations.
• Despite an 84% rise in fuel costs to $5.1 billion, United raised its full-year adjusted earnings guidance to $9-$11 per share, expecting to fully offset fuel cost increases by the fourth quarter through higher revenue.
• Revenue growth was broad-based, with increases across premium cabins, economy, corporate contracts, loyalty programs, and cargo, alongside improved operational performance including the best second-quarter on-time departure rate since 2021.
• Compared to Delta, United matched adjusted operating revenue but posted higher adjusted EPS ($1.99 vs. $1.56), while Delta generated significantly higher total profit and pre-tax margin, aided by a lower fuel expense.
• United anticipates third-quarter adjusted EPS of $2.50 to $3.50, noting fuel price increases continue to pressure profits, and plans to reduce fourth-quarter capacity to maintain pricing discipline amid strong demand.