Newark recovers as United Airlines profits decline
United Airlines Reverses Newark Staffing Challenges
Key Development
- United Airlines reported a decline in second‑quarter profits on Wednesday.
- Higher costs and a one‑time labor expense of $561 million weighed on earnings.
- The carrier signaled improvement at its Newark hub after a May outage.
Profit Performance
The airline’s first‑quarter revenue edged up 1.7 % to $15.2 billion, yet net profit fell 26.4 % to $973 million. United’s salary expenses rose compared with the year‑ago period.
Staffing and Equipment Outage
On April 28 a Newark equipment failure caused air‑traffic controllers to lose radar and communication for 90 seconds. The incident triggered daily flight cancellations and prompted U.S. officials to slow traffic because of insufficient staffing. United’s operations at Newark now lead all major airlines in on‑time performance and have the lowest seat‑cancellation rate among New York City area airports, according to the carrier’s press release.
CEO Outlook and Future Forecast
United CEO Scott Kirby highlighted a positive shift in demand beginning in early July and anticipates another inflection in industry supply in mid‑August. “The world is less uncertain today than it was during the first six months of 2025 and that gives us confidence about a strong finish to the year,” Kirby said. The airline plans to resume service between its Newark hub and Tel Aviv, Israel on July 21 after suspending trips due to the Iran‑Israel war.
United projected full‑year 2025 profits of $9–$11 per share, roughly $2 above its “recessionary environment” forecast from April but about $2.50 below the “stable environment” projection. Shares fell 1.5 % in after‑hours trading.
