Earnings Performance: United Airlines reported earnings per share (EPS) of $3.87 for Q2 2025, exceeding Wall Street expectations of $3.81. The earnings growth is attributed to the United Next strategy, which focuses on brand loyalty and revenue diversity. Excluding the impact of Newark disruptions, the company would have exceeded the high end of their guidance.

Outlook for Q3 and Q4: The company forecasts Q3 EPS between $2.25 and $2.75, indicating cautious optimism due to recent strong bookings and positive demand trends. Despite these promising indicators, the third quarter RASM (Revenue per Available Seat Mile) is expected to remain negative year-over-year due to the lingering impact of Newark disruptions. However, factors such as reduced industry capacity in Q4 could lead to better results.

Demand Recovery: An inflection point in demand was noted, with a 6-point increase in bookings observed in July compared to Q2. Business demand saw a double-digit acceleration. This trend is expected to sustain as uncertainty in the macroeconomic environment diminishes, although demand is not yet fully back to pre-January levels.