United Airlines warns profit still suffering from Newark chaos — but travel demand picking up

United Airlines announced on Wednesday that travel demand has shown an increase since the start of July, attributed to reduced geopolitical and macroeconomic uncertainties.

Despite this positive trend, the Chicago-based airline anticipates a decline in earnings for the current quarter due to operational challenges at Newark airport, one of its major hubs.

United reported a 6% growth in overall travel demand and a double-digit increase in business bookings for the third quarter compared to the previous quarter.

The airline now estimates its full-year adjusted profit to be between $9 and $11 per share, slightly below analysts’ expectations of $10.04 per share.

United CEO Scott Kirby expressed confidence in a strong finish to the year, stating, “The world is less uncertain today than it was during the first six months of 2025.”

United’s shares dropped by 1.6% in after-hours trading as the third-quarter profit forecast fell short of Wall Street estimates.

The company projects an adjusted profit ranging from $2.25 to $2.75 per share for the quarter ending in September, with operational issues at Newark airport contributing to a 0.9 percentage point impact.

United previously provided dual earnings forecasts in response to uncertainties caused by the trade war, but it seems travel demand has stabilized since then.

Challenges in the Industry

Despite the improvement in booking trends, airlines are still facing challenges with weak pricing power. United’s yield was down in all geographies in the second quarter, particularly in the US domestic market.

United anticipates that efforts to cut unprofitable flights will help increase airfares in the second half of the year, following a successful second-quarter performance where adjusted profit exceeded expectations.

The company will provide further insights into its financial results during a call with analysts and investors scheduled for Thursday morning.