United Airlines Lowers Q3 Profit Forecast Amid Newark Disruptions

United Airlines has reported a strong rebound in travel demand since early July 2025, with a 6% increase in overall bookings and a double-digit surge in business travel, driven by reduced geopolitical and macroeconomic uncertainty. Despite this demand uptick, the airline faces significant operational challenges at its Newark hub, including equipment failures, runway construction, and air traffic control staffing shortages, which have negatively impacted its profits. These issues caused a 1.2 percentage point earnings hit in Q2 and are expected to reduce third-quarter profits by another 0.9 percentage points, leading United to lower its Q3 profit forecast to a midpoint of $2.50 per share, below analysts' expectations of $2.60. United has, however, raised its full-year adjusted earnings guidance to a range of $9.00 to $11.00 per share, reflecting confidence in a strong second half of 2025 amid moderating industry capacity and improving demand. Investors remain cautious, as operational disruptions at Newark continue to suppress revenue per passenger and pricing power, highlighting the fragility of the airline's recovery despite favorable booking trends. Overall, United's financial outlook balances optimism about travel demand recovery with ongoing concerns over infrastructure and staffing bottlenecks that may weigh on profitability in the near term.