The US Big Four have all now reported their Q1 results. The Engine Cowl summarizes the key takeaways:
United Airlines leads in margin performance
United Airlines was #1 for profitability with a 6.8% operating margin, up from 4.6% last year.
Meanwhile, Southwest Airlines delivered a remarkable turnaround, swinging from -3.5% in 1Q25 to +4.6% this year.
American Airlines also saw an improved operating margin but still ended the quarter with a slight operating loss.
Delta Air Lines was the only one of the Big Four to see a lower operating margin than last year. However, the airline’s adjusted operating margin, which excludes the impact of third-party refinery sales and mark-to-market adjustments and settlements on hedges, came in at 4.6%, slightly higher than last year's 4.5%.
Southwest’s turnaround bearing fruit
It was an exceptional quarter for revenue performance and all four airlines saw both unit revenues (and unit costs) grow year-on-year.
Southwest stands out for an impressive unit revenue performance and relatively contained unit costs as the airline’s turnaround efforts start to crystallize into a robust recovery.
Delta Air Lines delivered the strongest RASM growth of the group. However, $592 million of the airline’s revenue growth was driven by higher third-party refinery sales. Adjusted RASM growth excluding this impact was 8.2%.
United Airlines saw the lowest RASM improvement of the bunch but posted a nevertheless robust 6.9% expansion in unit revenue.
