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United Airlines (UAL) delivered mixed 3Q25 results, beating EPS expectations but missing on revenue, a contrast to peer Delta Airlines’ (DAL) strong beat-and-raise report last week. The revenue shortfall is weighing on shares, as investors focus on the continued decline in unit revenue metrics as higher capacity offset fare strength.

• TRASM fell 4.3% yr/yr, worse than last quarter’s 4.0% drop, pressured by a 7.2% capacity increase that outpaced demand. In comparison, DAL’s TRASM rose 2%, underscoring UAL’s relative pricing pressure.
• Premium cabin revenue grew 6% yr/yr, loyalty revenue jumped 9%, and basic economy rose 4%, showcasing strong revenue diversification despite softer yields.
• UAL continues to invest over $1 bln in upgrades, including Starlink Wi-Fi, seatback screens, and enhanced onboard food, aiming to strengthen customer loyalty and premium demand.
• Q4 EPS guidance of $3.00-$3.50 came in above expectations, supported by robust premium and business travel and expected unit revenue improvement.

Briefing.com Analyst Insight:

UAL’s Q3 highlights the challenge of balancing growth and pricing power. Strong execution drove an EPS beat, but expanding capacity is pressuring TRASM and masking underlying demand strength. While its premium and loyalty segments continue to shine, DAL’s superior yield management stands out. UAL’s upbeat Q4 outlook suggests stabilization ahead, but until unit revenue improves, its stock may lag peers. Longer term, UAL’s fleet and service investments should enhance brand equity and help capture more premium share. However, the near-term risk remains that its rapid supply growth could limit pricing recovery if macro conditions soften.