3 takeaways from United Airlines’ Q4 2025 results: lower operating income, better YoY PRASM than Q3, and growing economy revenues

United Airlines was the second major United States airline to publish its Q4 2025 results, with the carrier ending the year with improved quarterly and yearly net income figures compared to the end of Q4 2024. The Engine Cowl explores the three main takeaways from the carrier’s quarterly results.

Lower operating income

United Airlines ended 2025 with net income of $3.4 billion, up 6.5% from 2024. The gain in net income was primarily driven by a $520 million fall in net non-operating expenses.

Meanwhile, despite a $360 million tailwind from lower fuel expenses, operating income actually fell by $383 million compared to 2024, which was a 7.5% drop year-on-year (YoY).

Total operating revenue growth of 3.5% YoY did not keep pace with operating expense growth 4.6% YoY or capacity, measured in Available Seat Miles (ASMs), which grew by 6.1% YoY.

Improved YoY unit revenue performance vs Q3

In 2025, Passenger Revenue per ASM (PRASM) fell by 2.9% compared to 2024.

However, fourth quarter PRASM was down by only 1.4% YoY. Weaker performance in the Domestic market (down 1.9% vs Q4 2024) and Latin America (down 7.6% vs Q4 2024) dragged overall PRASM lower, while the Atlantic and Pacific markets delivered positive unit revenue growth.

This is a substantial improvement in YoY PRASM performance compared to Q3 2025, when PRASM fell by 5.0% YoY, with all four markets (Domestic, Latin America, Atlantic, and Pacific) performing worse than Q3 2024.

United Airlines’ yields drop across almost all markets

United Airlines’ passenger revenues were still up compared to Q3 2024, driven in part by capacity growing by 7.2% YoY.

The Engine CowlRytis Beresnevicius

Basic Economy revenue is still growing

United Airlines reported that revenue from Basic Economy grew by 5% YoY for the full-year and 7% YoY for the fourth quarter.

This was a mirror image of Delta Air Lines, which reported in its Q4 2025 results that Main Cabin revenue fell by 5% YoY for the full-year and by 7% YoY for the fourth quarter. For the first time ever, Delta Air Lines earned more quarterly revenue from its premium products than from its Main Cabin.

Delta’s premium ticket revenue exceeds Main Cabin ticket revenue for the first time

For the first time in its history, Delta Air Lines’ quarterly ticket revenues mainly come from its premium cabins.

The Engine CowlRytis Beresnevicius