Executives on earnings call report double-digit swing in higher-yielding business revenues in July

A variety of factors has led to a sharp positive turnaround in the past few weeks, according to United Airlines executives speaking on an earnings call. The reversal comes after a first quarter that saw weak demand for the last five months due to high levels of uncertainty for both businesses and customers.

Scott Kirby, CEO, said: “The level of uncertainty has declined. The tax situation is settled after the reconciliation bill passed. The geopolitical situation in the Middle East appears to have stabilized.” And while tariffs are not yet certain, he said, “I think the market and most businesses have a much better read on how they’ll manage in a narrow range of outcomes.”

The effect of these recent changes, including the signing of the Trump administration’s major spending legislation, has been an increase in travel demand, executives said. 

Andrew Nocella, chief commercial officer, said, “This step-up is a six-point positive swing in sales to date in July versus the second quarter, but even more importantly, a double-digit swing in higher-yielding business revenues in the same period.” He added that the rebound has been “across the board” in terms of hubs and verticals.

Business demand is not all the way back, according to Kirby, but he added, “it has certainly inflected in a positive direction.” A number of positive elements, said Nocella, create a “great setup” for the fourth quarter.

Torbjorn Enqvist, COO, said there has been a “dramatic turnaround” at Newark Liberty International Airport after a period of IT outages and runway construction, with bookings largely recovered.  The carrier does not expect an effect on margins in the fourth quarter.

United reported second-quarter passenger revenue of more than $13.8 billion, a 1.1% increase year over year. Total revenue rose 1.7% to more than $15.2 billion. Net income for the quarter was $973 million, down from the more than $1.3 billion reported in 2024.