United Airlines Holdings Inc

Strong Q1 Performance Despite Economic Headwinds: United Airlines reported a Q1 2025 earnings per share (EPS) of $0.91, exceeding expectations and achieving a pre-tax margin of 3.3%—the strongest first quarter in five years. The company's total revenue increased by 5.4% year-over-year to $13.2 billion, indicating resilience in a challenging macroeconomic environment.

Earnings Forecasts & Guidance: For the second quarter, United expects EPS to range between $3.25 and $4.25. For the full year 2025, the airline anticipates an EPS range of $11.50 to $13.50, subject to current booking trends remaining stable. If the economic situation worsens into a recession, the company projects EPS of $7 to $9, supported by expected cost management and reduced capacity in lower-demand areas.

Focus on Brand Loyalty: United has gained a competitive edge by building a strong base of brand loyal customers, leading to structural and irreversible market share gains. This strategy is viewed as critical for maintaining profitability, especially during economic downturns where brand loyal carriers are less reliant on price competition.