Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
United Airlines Holdings Inc., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The profitability metrics demonstrate a significant recovery and subsequent stabilization over the five-year period. Initial values indicate substantial losses, followed by consistent improvement through 2023, with a slight moderation of gains in the subsequent two years.
- Operating Profit Margin
- The operating profit margin experienced a dramatic shift from a negative 4.15% in 2021 to a positive 5.20% in 2022. This upward trajectory continued, peaking at 8.93% in 2024 before decreasing slightly to 7.98% in 2025. This suggests improving operational efficiency and revenue management, although recent performance indicates a potential plateauing of these gains.
- Net Profit Margin
- Similar to the operating profit margin, the net profit margin moved from a loss of -7.97% in 2021 to a profit of 1.64% in 2022. The margin continued to expand, reaching 5.52% in 2024 and 5.68% in 2025. The consistent, albeit moderate, increase suggests effective cost control and potentially favorable financial conditions beyond core operations.
- Return on Equity (ROE)
- Return on equity exhibited the most substantial change. Starting from a negative 39.05% in 2021, it rose sharply to 10.69% in 2022 and further to 28.08% in 2023. While still positive, ROE decreased to 24.84% in 2024 and 21.94% in 2025. This indicates a strong improvement in profitability relative to shareholder equity, but also suggests diminishing returns on equity as the period progresses.
- Return on Assets (ROA)
- Return on assets followed a similar pattern to ROE, moving from -2.88% in 2021 to 1.09% in 2022, 3.68% in 2023, and peaking at 4.25% in 2024. A further, smaller increase to 4.39% was observed in 2025. This demonstrates improved efficiency in utilizing assets to generate profit, with a stabilization of performance in the most recent year.
Overall, the period is characterized by a strong recovery in profitability, with all metrics showing significant improvement from 2021 to 2023. The subsequent two years indicate a stabilization of these gains, suggesting a mature phase in the recovery process.
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Return on Sales
Return on Investment
Operating Profit Margin
United Airlines Holdings Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 4,713) | 5,096) | 4,211) | 2,337) | (1,022) | |
| Operating revenue | 59,070) | 57,063) | 53,717) | 44,955) | 24,634) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 7.98% | 8.93% | 7.84% | 5.20% | -4.15% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 5.93% | 6.34% | 5.45% | 6.68% | 6.98% | |
| Uber Technologies Inc. | 10.70% | 6.36% | 2.98% | -5.75% | -21.97% | |
| Union Pacific Corp. | 40.17% | 40.05% | 37.65% | 39.87% | 42.83% | |
| United Parcel Service Inc. | 8.87% | 9.30% | 10.05% | 13.05% | 13.17% | |
| Operating Profit Margin, Sector | ||||||
| Transportation | 10.64% | 10.40% | 9.61% | 10.07% | 9.44% | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 11.88% | 9.94% | 9.90% | 9.06% | 9.24% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Operating revenue
= 100 × 4,713 ÷ 59,070 = 7.98%
2 Click competitor name to see calculations.
The operating profit margin exhibited a significant improvement over the observed period. Initially negative, the margin transitioned to positive territory and demonstrated consistent growth before experiencing a slight decline in the most recent year.
- Operating Profit Margin Trend
- In 2021, the operating profit margin was -4.15%, indicating an operating loss. A substantial increase was recorded in 2022, with the margin rising to 5.20%. This positive trend continued through 2023, reaching 7.84%, and further improved to 8.93% in 2024. However, in 2025, the operating profit margin decreased slightly to 7.98%.
The improvement in the operating profit margin correlates with increases in operating revenue and a shift from an operating loss to operating income. The magnitude of the increase between 2021 and 2024 suggests a successful implementation of cost control measures or revenue enhancement strategies. The slight decrease in 2025 warrants further investigation to determine the underlying factors, such as potential increases in operating expenses or a slowdown in revenue growth.
- Operating Income and Revenue Relationship
- Operating income moved from a loss of US$1,022 million in 2021 to a profit of US$4,713 million in 2025. Simultaneously, operating revenue increased consistently from US$24,634 million in 2021 to US$59,070 million in 2025. This parallel growth in both income and revenue supports the observed improvement in the operating profit margin.
The peak margin achieved in 2024 represents the highest level of operating profitability within the analyzed timeframe. While the 2025 margin experienced a minor reduction, it remains significantly higher than the negative margin observed in 2021, indicating a sustained improvement in overall operational efficiency.
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Net Profit Margin
United Airlines Holdings Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 3,353) | 3,149) | 2,618) | 737) | (1,964) | |
| Operating revenue | 59,070) | 57,063) | 53,717) | 44,955) | 24,634) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 5.68% | 5.52% | 4.87% | 1.64% | -7.97% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 4.65% | 4.94% | 4.41% | 4.09% | 6.23% | |
| Uber Technologies Inc. | 19.33% | 22.41% | 5.06% | -28.68% | -2.84% | |
| Union Pacific Corp. | 29.12% | 27.82% | 26.45% | 28.13% | 29.92% | |
| United Parcel Service Inc. | 6.28% | 6.35% | 7.37% | 11.51% | 13.25% | |
| Net Profit Margin, Sector | ||||||
| Transportation | 9.68% | 9.82% | 7.28% | 4.73% | 9.05% | |
| Net Profit Margin, Industry | ||||||
| Industrials | 9.59% | 8.06% | 8.32% | 5.04% | 5.85% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net profit margin = 100 × Net income (loss) ÷ Operating revenue
= 100 × 3,353 ÷ 59,070 = 5.68%
2 Click competitor name to see calculations.
The net profit margin exhibited a significant improvement over the observed period. Initially negative, the metric transitioned to positive values and demonstrated a consistent upward trajectory.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at -7.97%, indicating a net loss relative to operating revenue. A substantial positive shift occurred in 2022, with the net profit margin rising to 1.64%. This improvement continued into 2023, reaching 4.87%, and further increased to 5.52% in 2024. The upward trend persisted into 2025, with the net profit margin reaching 5.68%.
The progression from a negative margin to a consistently positive and increasing margin suggests improving operational efficiency, effective cost management, and/or increased revenue generation relative to costs. The magnitude of the increase from 2021 to 2022 was particularly notable, indicating a significant turnaround in financial performance. While the rate of increase slowed between 2022 and 2025, the margin continued to expand, suggesting sustained profitability.
- Relationship to Revenue
- The increase in net profit margin occurred alongside a consistent rise in operating revenue. Revenue grew from US$24,634 million in 2021 to US$59,070 million in 2025. This revenue growth likely contributed to the improved net profit margin, but the margin expansion indicates that profitability improved at a faster rate than revenue, suggesting enhanced efficiency.
The net income (loss) figures corroborate the net profit margin trend. The transition from a substantial net loss in 2021 to increasing net income in subsequent years directly supports the observed improvement in profitability.
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Return on Equity (ROE)
United Airlines Holdings Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 3,353) | 3,149) | 2,618) | 737) | (1,964) | |
| Stockholders’ equity | 15,282) | 12,675) | 9,324) | 6,896) | 5,029) | |
| Profitability Ratio | ||||||
| ROE1 | 21.94% | 24.84% | 28.08% | 10.69% | -39.05% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | 14.58% | 15.70% | 15.23% | 15.34% | 21.64% | |
| Uber Technologies Inc. | 37.18% | 45.72% | 16.77% | -124.54% | -3.43% | |
| Union Pacific Corp. | 38.65% | 39.95% | 43.14% | 57.54% | 46.06% | |
| United Parcel Service Inc. | 34.34% | 34.59% | 38.76% | 58.36% | 90.44% | |
| ROE, Sector | ||||||
| Transportation | 28.74% | 31.30% | 27.38% | 19.64% | 30.78% | |
| ROE, Industry | ||||||
| Industrials | 27.59% | 23.51% | 27.70% | 15.38% | 15.38% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 3,353 ÷ 15,282 = 21.94%
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited significant fluctuations over the observed period. Initially negative, it transitioned to positive values and then demonstrated a decreasing trend towards the end of the period. This analysis details the observed patterns in ROE alongside its constituent components, net income and stockholders’ equity.
- ROE Trend
- In 2021, the ROE was negative, registering at -39.05%. A substantial improvement occurred in 2022, with the ROE rising to 10.69%. Further growth was observed in 2023, reaching a peak of 28.08%. Subsequently, the ROE experienced a decline, decreasing to 24.84% in 2024 and further to 21.94% in 2025. This indicates diminishing returns to equity over the latter part of the period.
- Net Income Influence
- Net income moved from a significant loss of US$1,964 million in 2021 to a profit of US$737 million in 2022. Continued positive performance resulted in net income of US$2,618 million in 2023, US$3,149 million in 2024, and US$3,353 million in 2025. The increasing net income contributed to the initial rise in ROE, but the rate of increase in net income slowed down in the later years, which likely contributed to the subsequent decline in ROE.
- Stockholders’ Equity Influence
- Stockholders’ equity consistently increased throughout the period, moving from US$5,029 million in 2021 to US$6,896 million in 2022, US$9,324 million in 2023, US$12,675 million in 2024, and US$15,282 million in 2025. The growth in equity, while positive, likely diluted the impact of net income on ROE as the equity base expanded, contributing to the observed downward trend in ROE from 2023 to 2025.
The combined effect of increasing net income and rapidly growing stockholders’ equity resulted in a peak ROE in 2023, followed by a moderation in subsequent years. While profitability improved in absolute terms, the rate of return on the invested equity diminished, suggesting a potential need to evaluate strategies for more effectively utilizing equity to generate higher returns.
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Return on Assets (ROA)
United Airlines Holdings Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 3,353) | 3,149) | 2,618) | 737) | (1,964) | |
| Total assets | 76,448) | 74,083) | 71,104) | 67,358) | 68,175) | |
| Profitability Ratio | ||||||
| ROA1 | 4.39% | 4.25% | 3.68% | 1.09% | -2.88% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | 4.67% | 4.98% | 4.56% | 4.45% | 6.32% | |
| Uber Technologies Inc. | 16.27% | 19.23% | 4.88% | -28.47% | -1.28% | |
| Union Pacific Corp. | 10.24% | 9.96% | 9.50% | 10.69% | 10.27% | |
| United Parcel Service Inc. | 7.62% | 8.25% | 9.47% | 16.24% | 18.57% | |
| ROA, Sector | ||||||
| Transportation | 8.19% | 8.53% | 6.44% | 4.34% | 6.88% | |
| ROA, Industry | ||||||
| Industrials | 6.35% | 5.24% | 5.61% | 3.31% | 3.40% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 3,353 ÷ 76,448 = 4.39%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a significant improvement over the observed period. Initially negative, the ROA trended positively, demonstrating increasing profitability relative to the company’s asset base.
- ROA Trend
- In 2021, the ROA was -2.88%, indicating a net loss relative to total assets. A substantial turnaround occurred in 2022, with the ROA rising to 1.09%. This positive trend continued through 2023, reaching 3.68%, and further increased to 4.25% in 2024. The ROA experienced a modest increase in 2025, concluding the period at 4.39%.
The progression from a negative ROA to a consistently positive and increasing one suggests improved operational efficiency and/or more effective asset utilization. The magnitude of the increase from 2021 to 2022 was particularly noteworthy, indicating a substantial recovery in profitability. While the rate of increase slowed between 2022 and 2025, the ROA continued to demonstrate positive momentum.
- Net Income and Total Assets Relationship
- The improvement in ROA aligns with the shift from a net loss in 2021 to net income in subsequent years. Simultaneously, total assets experienced a moderate increase over the period, from US$68,175 million in 2021 to US$76,448 million in 2025. The ROA increase indicates that net income grew at a faster rate than total assets, resulting in a more efficient use of assets to generate profit.
The consistent positive trend in ROA throughout the analyzed timeframe suggests a strengthening financial position and improved capacity to generate returns from its resource base.
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