Key Points

• Adjusted earnings per share (non-GAAP) surpassed expectations at $3.87 for the quarter, while revenue (GAAP) came in just below analyst forecasts.

• Domestic passenger revenue slipped 0.7%, but international revenue climbed 3.8% with Pacific routes leading growth.

• Management raised its full-year adjusted diluted earnings per share (non-GAAP) outlook to a range of $9.00 to $11.00.

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United Airlines (NASDAQ:UAL), a leading global airline with one of the broadest route networks in North America, reported its second quarter 2025 financial results on July 16, 2025. The standout news was adjusted diluted earnings per share (non-GAAP) of $3.87. Adjusted earnings per share of $3.87 beat analyst estimates by 1.57% (non-GAAP), while total revenue (GAAP) of $15.2 billion edged slightly below forecasts. Domestic passenger revenue softened during the quarter, reflecting higher expenses and pressure on main cabin fares. Continued loyalty revenue growth, and increased demand in premium cabins contributed to performance. Overall, the results point to a mix of challenges and strengths, with management raising their full-year adjusted diluted earnings per share guidance, signaling optimism for the remainder of fiscal 2025.

Metric	Q2 2025	Q2 2025 Estimate	Q2 2024	Y/Y Change
EPS (Non-GAAP)	$3.87	$3.81	$4.14	(6.5%)
Revenue (GAAP)	$15.24 billion	$15.36 billion	$14.99 billion	1.7%
Net Income (GAAP)	$973 million		$1.32 billion	(26.4%)
Free Cash Flow (Non-GAAP)	$1.1 billion		$1.84 billion	(38.5%)
Adjusted Operating Margin (Non-GAAP)	11.6%		13.1%	(1.5) pts.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About United Airlines—Business Model and Focus Areas

United Airlines operates an expansive route network connecting major business centers and high-population areas across the globe. Its hub-and-spoke system enables frequent flights to destinations on six continents, supporting large numbers of both business and leisure travelers. United's business model centers on maximizing connectivity, operational efficiency, and customer loyalty through strategic hub placement in cities like Chicago, Denver, Houston, and San Francisco.

In recent years, the company’s focus has shifted toward growing its international presence, expanding its loyalty and premium product offerings, and investing in sustainability initiatives. Key success factors now include network reach, cost management, successful labor relations, and delivering enhanced passenger experiences—especially in premium and high-value services.

Main Highlights from the Quarter

United recorded GAAP revenue growth of 1.7%, but this increase lagged a 6.5% jump in operating expenses (GAAP). Domestic passenger revenue (GAAP) declined by 0.7%, with demand softening in the main cabin and lower yields putting pressure on profitability. In contrast, international passenger revenue grew by 3.8%—led by an 8.7% increase in Pacific routes and solid gains in Europe and the Atlantic. Management attributed the international outperformance to strong US-origin demand and expanded long-haul service, supported by newly launched international routes.

Premium products continued to gain traction, with revenue from premium cabin tickets increasing 5.6% year-over-year. The airline also reported that loyalty revenue climbed 8.7% year-over-year. Cargo revenue contributed positively as well, up 3.8% year over year, despite a slight drop in cargo revenue ton miles. Operational reliability improved, with United achieving its best post-pandemic scores for on-time departures and its lowest second-quarter seat cancellation rate since 2021. New customer upgrades—such as Polaris Studio suites for business class and the Blue Sky partnership with JetBlue—added value to the passenger experience.

Unit revenue metrics showed areas that will need attention. Revenue per available seat mile, a key measure of efficiency capturing fare and demand levels per seat offered, fell 4.0% as domestic markets showed softness. The overall passenger load factor, or the percentage of available seats filled, slipped to 83.1% from 84.2%. In the domestic market, the load factor dropped by 2.3 points, reflecting weaker demand and the company’s decision to accept more lower-fare travelers to fill seats.

United’s costs rose ahead of revenue. Labor expenses increased by 7.7%—driven in part by a $561 million ratification bonus for flight attendants. Maintenance costs (GAAP) rose 20.8%. Other notable expense growth came from landing fees (up 11.0%). However, the airline benefited from a 15.3% year-over-year decrease in average fuel prices per gallon. Special items of $447 million, primarily related to labor agreements, also weighed on GAAP net income.

There were also signs of improving financial health. The company ended the quarter with $18.6 billion in available liquidity and reduced its net leverage (non-GAAP) to 2.0 times trailing twelve-month earnings from 2.4 times a year ago as of June 30, 2025. It also repurchased $0.2 billion of shares during the quarter, bringing year-to-date buybacks to $0.6 billion. Free cash flow (non-GAAP), while down from last year, remained positive at $1.13 billion.

On the strategic front, network expansion and alliances were key themes. United operated its largest-ever schedule by available seat miles, increasing capacity by 5.9% and adding new routes worldwide. The company highlighted the rollout of new customer amenities, progress on sustainable aviation fuel, and expanded digital check-in and touchless ID initiatives. However, the proportion of sustainable aviation fuel remained less than 0.3% of total usage, highlighting the ongoing challenge of scaling environmental initiatives.

Looking Ahead—Management’s Outlook and What to Watch

Management slightly raised its full-year adjusted diluted earnings per share guidance to a range of $9.00 to $11.00, reflecting a recent pickup in bookings and stronger business travel demand observed since early July. This updated outlook is a shift from the company's previous "recession scenario" expectations of $7.00 to $9.00 per share in earnings, though lower than the high case previously discussed.

Investors should monitor domestic revenue trends, as yield and load factors remain under pressure in the main cabin. Additional risks include ongoing labor cost increases and uncertain trajectory for fuel and maintenance expenses. Key areas of possible upside include further loyalty revenue growth, continued international strength—especially in the Pacific region—and operational improvements that boost customer satisfaction scores.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

For many small business owners, translating a website feels like a luxury they simply can’t afford.

I know that feeling all too well. Here at WPBeginner, we’ve translated our site into multiple languages, including Spanish, Portuguese, and Japanese. And in the early days, we learned a tough lesson: traditional translation methods are incredibly time-consuming and expensive.

For a small business owner, that kind of investment often isn’t practical. But what if you could get all the benefits of a multilingual site without the high price tag?

That’s exactly what AI-powered tools offer. Instead of hiring a translator or digging into code, you can use artificial intelligence to quickly translate your entire WordPress site.

In this guide, I’ll show you how to translate your content step-by-step, even if you’ve never used artificial intelligence before.

Why Do You Need AI Translation for Your Website?

Translating your WordPress site into multiple languages can get complicated quickly.

Manual translation takes a lot of time, especially if you’re regularly updating your content. On the other hand, hiring professional translators can help with quality, but it’s often expensive and hard to manage.

That’s why many website owners use WordPress translation plugins. But not all of them deliver the same results.

Some tools have trouble matching your brand voice or handling industry-specific language. This can stop your content from connecting with your target audience.

This is where AI-powered translation stands out.

With the right settings, AI tools can follow your brand guidelines and use your custom glossary to produce more natural, consistent translations. They even learn from your edits, so translations improve over time.

Best of all, it’s fast. What used to take hours or days can now be done in just minutes, without sacrificing quality or consistency.

In this guide, I’ll show you how to use AI to translate your WordPress site. Here are the tools and methods I’ll cover:

Method 1: Using Weglot’s AI Language Model (For Your Entire Website)

Weglot is the best website translation tool, and their AI Language Model feature is a game-changer for translating your entire website.

Unlike basic translation tools that swap words from one language to another, Weglot’s AI actually learns your brand’s personality and creates translations that sound like you wrote them originally.

What’s great about this feature is that it actually learns from you. If you make any manual changes or add specific words to your glossary, then the AI will learn from them.

Over time, the more you use it, the better it gets at sounding just right for your business in every language. It continues to improve, so your translations become even more accurate and true to your brand.

For more insights into the tool, you can see our detailed Weglot review.

Step 1: Get a Weglot Account

You’ll need a Weglot account to start translating your content. The free plan includes 2,000 translated words, but the AI Language Model is available in the Pro plan or higher.

Keep in mind that all plans come with a 14-day free trial, so you can try out the features and see if they fit your needs.

Go ahead and choose a plan from the Weglot website by clicking ‘Start free’ beneath the one you want to use.

This will take you to the signup page.

You need to enter your email address, create a strong password, and click the ‘Sign up’ button.

Upon registration, Weglot will take you to the dashboard.

From here, you can go ahead and click the ‘Create project’ button.

On the next screen, you need to enter a name for your new project. This is for your reference only, but we recommend using a clear name for easier organization.

After that, you’ll choose the website technology in the dropdown field. In this case, you can click ‘WordPress.’

With that done, go ahead and click ‘Next.’

On the next screen, Weglot will show you its API Key.

Keep this tab open, as you’ll need it to connect your Weglot account and your WordPress website.

Step 2: Install and Activate the Weglot Plugin

Now, you can install the Weglot plugin on your WordPress site by going to Plugins » Add New and searching for ‘Weglot.’

Click the ‘Install Now’ button, then activate the plugin after the installation is complete.

Upon activation, you’ll see a new ‘Weglot’ menu item appear in your WordPress admin sidebar.

For more information, check our guide on how to install a WordPress plugin.

Step 3: Set Up Your Weglot Account and Basic Translation

After activating the plugin, click on ‘Weglot’ in your WordPress admin area.

This will open the ‘Main configuration’ panel, where you’ll connect your WordPress site to your Weglot account.

Simply copy the API key from your Weglot dashboard and paste it into the ‘API Key’ field.

Weglot will then verify your account.

Once verified, you’ll see a checkmark.

Next, you can then select your original language (the language your website is currently written in) and choose which languages you want to translate to.

With that done, don’t forget to click the ‘Save Changes’ button.

And after a few seconds, you’ll see a success message.

If you close the notification, you might notice that Weglot unlocks more customization options.

On the same page, you can customize your language switcher design, configure the widget style, and choose where the language switcher appears on your site.

At this point, Weglot has applied a first layer of standard machine translation across your entire site. This provides you with a complete, translated version to get started.

If you visit your website, you’ll see the language switcher.

In the next steps, I’ll show you how to use the AI Language Model to refine and improve these translations to match your brand voice.

Step 4: Build Glossary Rules for Your Translations

To start improving your translations, it’s a good idea to build your glossary rules first.

A glossary is like a rulebook for the AI. It lists words that should never be translated (like your brand name, product names, or industry terminology) or that must always be translated a certain way.

Without a glossary, AI tools might translate these terms incorrectly or inconsistently. This can confuse your readers, which can harm the user experience or even damage your brand identity.

To start, let’s navigate to the ‘Project’ page and click the one you just created from the Weglot dashboard. This will open the project’s configuration panel.

To build glossary rules, you can switch to the ‘Glossary’ tab.

Then, click the ‘Add glossary rule’ button

In the popup that appears, you will need to:

• Set up your rule, whether it’s to ‘Never translate’ or ‘Always translate.’
• Type in the word you want to set the rule for in the ‘Enter word’ field.
• Choose a target language or leave the ‘Language’ field empty to apply for all languages you have on your site.
• Make it case-sensitive (or not).

For example, my first rule is “Never translate ‘Example Website’ to Indonesian.”

Once you’ve set up the rule, you can click the ‘Save’ button.

Weglot will then redirect you to the ‘Glossary’ tab, where you’ll see all the rules you created in a table.

You can continue adding rules by clicking the ‘Add glossary rule’ button and repeating the same process.

Step 5: Configure Your Custom AI Language Model Settings

Now it’s time to set up Weglot’s AI Language Model.

In your project’s configuration panel, navigate to the Settings » Language Model.

From here, click on the ‘Configure’ button to start building a more personalized translation system.

The setup process walks you through several key areas that help the AI understand your brand.

You can start with your website description, where you’ll write 2-3 sentences explaining what your small business does and what makes it unique.

The most important thing is to be specific about your brand right from the beginning. Context makes a big difference, so be sure to provide as much background as possible.

For instance, you could let the AI know: “Our audience includes DIY enthusiasts.”

If you want to explain your tone, don’t just say it’s “friendly.” Instead, you can try to be more specific with phrases like “warm and encouraging” or “practical with a can-do attitude.”

For example, if your WordPress blog is for sharing DIY projects, you could say:

“This website is a go-to resource for DIY lovers who enjoy gardening, cooking, home improvement, and other hands-on projects. We share helpful how-tos, step-by-step guides, and creative ideas to inspire and support your next project. Our tone is warm, practical, and encouraging, like chatting with a knowledgeable friend who’s tried it themselves and wants to help you succeed.“

Next, you’ll define your tone of voice.

Weglot has 3 options for this – Informal, Neutral, and Formal. If you’re not sure what to pick, you can click on each one, and Weglot will show you an explanation:

• Informal: A friendly and conversational tone that creates a casual atmosphere.
• Neutral: A balanced and professional tone suitable for most business contexts.
• Formal: A professional and authoritative tone ideal for official communications.

After that, you’ll define your target audience by choosing from the 3 available groups: General, Technical, and Non-Technical.

Here’s what each group means:

• General: Targets a general audience. Use standard terminology to address the broadest possible audience.
• Technical: You are targeting users with technical knowledge and expertise. Use industry-specific terminology when needed.
• Non-technical: Targets readers who have limited technical knowledge of industry-specific terminology. Use plain and easily understandable language.

Don’t forget to click ‘Save Changes’ when you’re done.

Near the end of the page, you’ll see advanced settings for your language model. These let you fine-tune how Weglot handles translations on your site.

Here, you can choose to:

• Use the existing glossary rules – This tells Weglot to follow the glossary you’ve set up, so your preferred terms and brand-specific wording stay consistent across all translations.
• Use manual translation – If you’ve made manual edits to your translations, enabling this allows Weglot’s AI to learn from them and improve future suggestions. It helps the AI better match your tone and writing style over time.

Just toggle on the options you want to use and then click ‘Save’ to keep your changes.

Step 6: Apply AI Translations to Your Content

After configuring your AI Language Model, you can apply it to your existing translations.

Simply navigate to Translations » Languages and then click on the language pair you want to edit. This will take you to the translations list.

You’ll see that your content has already been translated using a standard engine. To improve it with your custom AI settings, you have full control over which translations get the AI treatment.

Simply hover over a section and click the ‘Improve with AI’ button.

The AI Language Model system will then process your content using all the brand guidelines and terminology you’ve set up.

Each translation that gets processed with your AI Language Model will show a ‘GenAI’ tag.

This makes it easy to track which content has been improved with your custom AI settings versus standard translations.

You can apply your AI Language Model to individual translations one by one.

Alternatively, you can select up to 25 translations at a time for bulk processing.

Step 7: Monitor and Refine Your AI Translations

After applying AI translations to your content, it’s important to review the results and make adjustments. The AI does excellent work, but it’s not perfect, especially when it first learns your brand voice.

Here are some tips:

• Check a few translated pages on your live website to see how the AI-generated content flows and sounds to real visitors.
• Pay attention to how well it maintains your brand personality and whether technical terms are handled correctly.

When you find translations that need tweaking, you can make those edits manually in the Weglot dashboard. Just go to the section and edit it right in the translation field.

Weglot will then update the status to ‘Manually edited translation.’

Here’s the smart part: The AI learns from your manual corrections and applies those lessons to future translations automatically.

This creates a feedback loop where your AI language model improves over time. The more you use it and refine it, the more accurately it captures your unique brand voice across all languages.

That’s it! You’ve successfully used Weglot’s AI Language Model to create high-quality, on-brand translations for your website.

Method 2: Using SeedProd’s AI Translation (For Page Content)

Weglot is designed for translating your entire website automatically. On the other hand, SeedProd, which is the best drag-and-drop page builder, is perfect for translating content across your WordPress pages.

This method is perfect if you don’t need to translate your whole site but want to quickly create a specific landing page for a campaign in another language.

For example, you could launch a sales page in Spanish for a special promotion without changing anything else on your English website.

For more information about the plugin, check out our detailed SeedProd review.

Step 1: Install and Set Up SeedProd

First, you’ll need to sign up for an account on the SeedProd website.

Just click on the ‘Get SeedProd Now’ button and follow the registration process.

Once you have signed up for an account, you will be taken to your SeedProd dashboard, where you need to download the zip file for the plugin.

Then, it’s time to install it on your WordPress website.

Go to Plugins » Add New Plugin then click on the ‘Upload Plugin’ button.

This will open the file uploader.

Click on the ‘Choose File’ and upload the SeedProd zip file from your computer.

Once uploaded, you can click the ‘Install Now’ button and then ‘Activate’ when it appears.

For more information, see our guide on how to install a WordPress plugin.

You will then be redirected to a page where you need to enter your SeedProd license key. You can find this in your SeedProd account.

Step 2: Create a Page with SeedProd

Next, you can navigate to SeedProd » Landing Pages in your WordPress admin area to create a new page.

Simply click ‘Add New Landing Page’.

After that, you’ll need to choose a template.

SeedProd has lots of template options, which are organized into different campaign categories, including coming soon, thank you, and 404 pages. You can click on the tabs at the top of the screen to filter templates based on campaign type.

Since we are creating a landing page, you may want to take a look at the Sales, Webinar, or Lead Squeeze tabs.

SeedProd lets you preview each template. Simply hover your mouse over it and then click on the magnifying glass.

Once you have found the perfect template, click the checkmark button.

This will open a popup where you can name your landing page.

When the page builder opens, you’ll see your content layout on the right side and the building tools on the left.

This is also where you’ll find the AI translation features for individual page elements.

You can now start building and customizing your landing page by dragging and dropping blocks from the panel on the left onto the page on the right.

For details, see our guide on how to create landing pages in WordPress.

Step 3: Translate Page Elements with AI

The AI translation option appears when you select text blocks, like headlines, paragraphs, or button text. You won’t see translation options for images or structural blocks, since those don’t contain translatable text content.

To translate any text block, simply click on it to select it within the page builder. You’ll see the block’s settings panel open on the left side of your screen.

From here, let’s click ‘Edit with AI.’

On the popup that appears, go ahead and expand the ‘Translate text to’ dropdown. SeedProd will then present you with more than 50 language choices.

Select the target language you want to translate your content into from the dropdown menu.

Once you pick your target language, SeedProd’s AI will quickly translate your text in just a few seconds.

You’ll see a preview of the translation, allowing you to check the tone and meaning. If it looks good, just click ‘Insert’ to replace the original text.

What if it doesn’t sound quite right? You can tweak it or generate a new version.

Just repeat this for each text block you want to translate.

Step 4: Review and Publish Translated Content

Before publishing your translated page, I recommend using SeedProd’s preview feature to see how everything looks together.

Click the ‘Preview’ button to view your page as visitors will see it, checking that all translated elements work well together.

Pay special attention to button text, headlines, and calls-to-action to make sure they’re compelling in the target language. Sometimes, direct translations don’t have the same impact as the original, so you might need to adjust phrasing for maximum effectiveness.

Once you’re satisfied with all the translations, you can make the page live by clicking on the ‘Save’ button and then ‘Publish.’

FAQs About Using AI to Translate Your Website

Still have a few questions about AI translations? Below, I’ve answered some of the most common ones to help you make a more informed decision.

How accurate is AI translation compared to human translation?

AI translation has come a long way from the clunky Google Translate days, but it’s not quite at human-level accuracy yet. In my experience, modern AI tools like Weglot‘s AI Language Model get most of the translations right on the first try.

The biggest difference is context understanding. Human translators excel at picking up subtle meanings and cultural references that AI might miss. However, AI wins on consistency because it won’t translate the same term differently across your site like human translators sometimes do.

For most business websites, AI translation provides excellent results that you can fine-tune as needed. The key is treating it as a smart starting point.

Can AI understand regional language differences?

Current AI translation tools handle regional differences better than you might expect, but they’re not perfect.

For example, let’s say you tested translations for Spanish markets. In this case, you may notice that the AI can distinguish between Mexican Spanish and Argentinian Spanish when you specify the target region.

The challenge comes with cultural context and local business practices. AI might translate your content accurately, but it might miss that certain phrases sound too formal or casual for specific regions.

Are there limitations to the current AI capabilities?

Yes, AI translation still has some blind spots. Humor, wordplay, and highly creative content often fail to translate well because they rely on cultural knowledge that AI hasn’t yet fully mastered.

Technical jargon can be tricky, too. While AI handles common business terms well, specialized industry language sometimes gets lost in translation. That’s why building a comprehensive glossary is so important.

I also noticed that AI can struggle with context that spans multiple sentences. It may translate each sentence accurately on its own, but miss how they work together to convey the full meaning.

What are some common challenges in AI translation, and how can they be overcome?

The biggest challenge I see is users expecting AI to work perfectly right out of the box. You need to invest time in training the system with your brand voice and terminology.

Another common issue is inconsistent quality across different content types. Blog posts might translate beautifully, while product descriptions sound awkward. The solution is to create specific guidelines for each type of content you’re translating.

Credit management can also be challenging for beginners. Start small, test thoroughly, and scale up gradually. It’s better to translate 10 important pages perfectly than to translate 100 pages poorly all at once.

More AI Guides to Help Streamline Your WordPress Tasks

I hope this guide helped you learn how to use AI to translate your website. If you found this helpful, you may also want to check out our other guides for growing your business with AI:

• How to Make a WordPress Website With AI
• A Small Business Owner’s Guide to Artificial Intelligence
• Is AI Content Bad for WordPress SEO? (Expert Insights & Tips)
• How to Write Content Using an AI Content Generator in WordPress
• How to Use AI for Customer Service (Tips for Small Businesses)
• Tips for Using AI to Skyrocket Your Lead Generation Campaign
• How to Use AI to Boost Your Marketing (Expert Tips)
• Best AI Prompts for Bloggers, Marketers, and Social Media
• Best Ways to Use OpenAI on Your WordPress Website
• Best AI Website Builders for WordPress (Expert Picks)
• Surprising AI Statistics – Everything You Need to Know

If you liked this article, then please subscribe to our YouTube Channel for WordPress video tutorials. You can also find us on Twitter and Facebook.

The post How to Use AI to Translate Your Website (2 Easy Methods) first appeared on WPBeginner.

Warren Buffett has made some critical comments on the airline industry over the last few decades, and frankly, he has a point. But are his criticisms still valid, or have carriers like Delta Air Lines (NYSE: DAL) and United Airlines (NASDAQ: UAL) altered the way investors should view the industry?

Buffett's views on the airline industry

The airline industry has historically struggled to generate the returns to cover its cost of capital. This is a point recognized by the International Air Transport Association and by Buffett himself. The legendary investor has argued that airlines' high fixed costs and the low marginal cost of adding extra seating and capacity lead to a tendency to ramp up capacity while also selling tickets at a low price.

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It's essential to note that when Buffett and others speak disparagingly about the airline industry and the returns it has generated for investors, they are typically referring to equity investors in airlines.

In contrast, bond investors have tended to do well, and airlines appear to have little difficulty attracting capital to the industry, not least because bonds are commonly securitized against valuable assets, namely the planes. It's also been an excellent industry for suppliers of airline equipment.

In Berkshire Hathaway's annual letter in 2007, Buffett wrote: "The airline industry's demand for capital ever since that first flight has been insatiable. Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it."

In 1990, he called out the self-destructive pricing tactics of certain carriers. And in 1992's letter, he talked about airlines acting like members of a competitive tontine -- an arrangement whereby the participants contribute equally to a prize that goes to the lone survivor -- that they wish to conclude "as rapidly as possible."

The general theme of a capital-intensive industry, with relatively small and ever-at-risk profit margins, containing participants who don't always act rationally, would go a long way to explaining why airlines have struggled to cover their cost of capital.

The airline industry has changed

That said, there's a strong case for arguing that the airline industry is different now. As mentioned previously, Delta and United Airlines are both consistently generating a return on invested capital (ROIC) that exceeds their weighted average cost of capital (WACC), a key requirement for generating value for shareholders.

They are doing so because of a combination of their business models, a change of behavior, and certain structural factors within the industry that are creating a favorable long-term environment for network carriers like Delta and United.

As for their business models, both continue to grow premium travel revenue, and it's proving more resilient in a slowdown. For example, the tariff-induced slowdown this year hasn't led to any deterioration in high-end consumers' willingness to purchase a premium experience, according to United's chief commercial officer, Andrew Nocella, on the last earnings call.

It was a similar story from Delta's president, Glen Hauenstein, who said, "We have not seen any cracks yet in the Premium."

And their loyalty programs -- Delta's SkyMiles and United's MileagePlus -- not only foster loyalty and customer recognition, leading to repeat bookings, but they also generate a wealth of valuable data on consumer behavior and produce lucrative revenue through the sale of miles.

Behavior and structural advantages

As Buffett's quotes above suggest, the industry hasn't always acted rationally, but there is recent evidence that it has begun to do so. For example, when overcapacity manifested itself in the spring of last year, airline stocks sold off heavily, only to recover strongly after carriers reduced unnecessary capacity.

DAL data by YCharts.

Fast forward to today, and both Delta and United have announced cutbacks on capacity expansion plans in light of slowing bookings -- a sign of rational behavior.

Lastly, on the structural advantages, a combination of rising airport costs (partly due to the need for infrastructure investment), labor costs, supply chain costs, and parts shortages is putting significant pressure on the margins of low-cost carriers. That's creating an opportunity for network carriers to offer economy tickets to fill capacity.

Are they stocks to buy?

The airline industry has undergone significant changes, and while Buffett's words should always be heeded, the reality is that Delta and United are generating good and sustainable ROIC by diversifying their revenue streams to ensure long-term, sustainable growth. Both stocks are attractive for long-term investors.

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Sometimes the best investment opportunities come wrapped in government buzzwords and unrealistic timelines.

Last Friday, the White House issued an executive order called "Unleashing American Drone Dominance." Yes, that's the actual title. And while it's long on ambition and short on specifics, buried in the bureaucratic language is something that matters for growth investors: a clear signal that the administration wants to fast-track electric vertical takeoff and landing (eVTOL) aircraft.

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The executive order creates an eVTOL pilot program requiring the FAA to select at least five companies for real-world operations, with aggressive timelines that suggest political pressure to move faster than typical aviation bureaucracy allows.

While the details remain vague and the timelines optimistic, the direction is clear: America wants to lead in urban air mobility. This political tailwind arrives just as the technology reaches commercial viability, creating a rare convergence of innovation, regulation, and market demand.

Now, before you roll your eyes at another government initiative, consider this: Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY) don't need this executive order to succeed. Both companies are working through FAA certification (though timelines for experimental aircraft are notoriously opaque), have secured major airline partnerships, and claim to be targeting commercial launches shortly.

What both companies are getting is something potentially more valuable -- political cover to move faster through the regulatory maze. Both stocks have already had massive runs over the past 12 months (Archer up 203%, Joby up 63%), but if you think flying taxis are still science fiction, you haven't been paying attention. Here's why these two pioneers look like buys even after their recent runs.

Archer Aviation: The execution story

Archer Aviation operates with remarkable efficiency for a pre-revenue company, achieving milestones that arguably justify its $5.6 billion market cap. The company's Midnight aircraft, designed to carry four passengers plus a pilot on trips up to 100 miles, recently completed piloted flights -- a critical step that positions Archer, alongside Joby, as one of America's leading eVTOL companies.

With partnerships spanning United Airlines for domestic routes and Stellantis for manufacturing expertise, Archer has assembled the pieces for rapid commercialization once certification arrives. Its Launch Edition program, securing commitments from Abu Dhabi Aviation and Ethiopian Airlines valued at up to $30 million each, provides early revenue visibility and validates international demand.

The investment case is compelling. Archer's $6 billion order backlog now exceeds its entire $5.6 billion market cap, while its hefty 11.7% short interest (as of mid-May) sets up a potential short squeeze. Though Friday's executive order lacks implementation details, it sends an unmistakable signal -- the U.S. government views eVTOL dominance as a national priority. For a company already executing ahead of most of its peers in many ways, that political validation could be the spark that sends shares soaring in the months ahead.

Joby Aviation: The deep-pocketed pioneer

Joby Aviation brings unmatched financial firepower to the eVTOL race, with $813 million in cash plus Toyota's recent $250 million investment (part of a $500 million commitment) providing runway through commercialization. The company's Q1 2025 achievements read like a pre-launch checklist: routine pilot-on-board transition flights, Virgin Atlantic partnership for U.K. market entry, fifth production aircraft powered on, and expanded Marina manufacturing facility set for June handover.

Joby benefits from Toyota's manufacturing expertise embedded directly in operations, potentially solving the hardest challenge facing aerospace start-ups -- scaling from prototypes to volume production. The company claims to be 62% complete on its side of Stage 4 FAA certification (43% on FAA's side), though investors should view these self-reported metrics skeptically given the opaque nature of experimental aircraft approval. That's not a knock against either company, but the reality of developing a new form of aviation.

With strategic partnerships including Delta Air Lines, Virgin Atlantic, and a $131 million Department of Defense contract, Joby has diversified its path to revenue across commercial, international, and military applications. And like Archer, Joby also sports a fairly high short interest, with 7.6% of outstanding shares sold short in May. As such, this eVTOL pioneer could also benefit form a short squeeze on positive news or a marketwide melt-up.

Why these two eVTOL pioneers are a buy this week

Friday's executive order accelerated the eVTOL timeline, and the market hasn't caught on. While Archer executes lean and Joby brings Toyota's backing, both companies now face compressed regulatory timelines that could pull commercial operations forward by years.

This week's setup is compelling: Heavy short interest creates squeeze potential, operational milestones keep hitting, and a fresh political catalyst has just emerged. So, for growth investors comfortable with volatility, this could be a stellar entry point.

Should you invest $1,000 in Archer Aviation right now?

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George Budwell has positions in Archer Aviation, Joby Aviation, and Toyota Motor. The Motley Fool recommends Delta Air Lines and Stellantis. The Motley Fool has a disclosure policy.

The U.S. government has announced plans to spend "tens of billions" to upgrade the air traffic control system, advancements that will hopefully help alleviate concerns about flying following a series of high-profile incidents.

The airlines are trading higher on the news, with Delta Air Lines (NYSE: DAL) and United Airlines Holdings (NASDAQ: UAL) each up 7% as of 1:30 p.m. ET and American Airlines Group (NASDAQ: AAL) up 5%.

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Bringing order to in-air chaos

The nation's air traffic control system is in desperate need of an upgrade, and incidents this year including a fatal mid-air collision over the Potomac River in Washington, D.C. and a recent outage at Newark Liberty International Airport have some questioning whether it is safe to fly.

United Airlines has been forced to slash its busy summer schedule due to disruptions at Newark.

On Thursday, Transportation Secretary Sean Duffy outlined his proposal to fix the system during a Congressional appearance that also included several airline CEOs. The administration is urging Congress to approve billions in funding to replace aging radar and other equipment and overhaul the tech infrastructure.

Speaking elsewhere on Thursday, President Donald Trump said the government is "now in the market to buy a gorgeous brand new system" to handle air traffic control.

Though the changes cannot be implemented overnight, a change in the narrative away from focusing on the issues and toward fixing them could help boost demand for air travel.

Is now the time to buy airline stocks?

Unfortunately for the industry, airline investors have a lot more to worry about than just air traffic control modernization. This is a highly cyclical industry that is tied closely to the health of the consumer. When times are tough, households and businesses are more likely to cut back on travel than on paying for basic essentials.

On earnings calls this quarter, execs largely said that demand is holding up for now but could come under pressure if tariffs and inflation sustain into the summer. With that in mind, the stocks are also likely moving on progress on the trade war front.

Those considering buying in now should pay close attention to demand trends in the weeks and months to come. For investors willing to accept the potential for turbulence, Delta and United have industry-leading balance sheets and the scale necessary to take advantage of an uptick in interest in flying from here.

Should you invest $1,000 in United Airlines right now?

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Airlines are among the most discretionary sectors out there, tied closely to the health of the consumer. So, perhaps it is no surprise that the stocks are seeing an oversize reaction to reports suggesting key parties are moving to de-escalate the trade war gripping the U.S. economy.

Shares of JetBlue Airways (NASDAQ: JBLU) traded up 10% as of 10 a.m. ET, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all up more than 5%.

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Clear skies up ahead?

We are only halfway through airline earnings season, but the message from the companies that have reported is clear: The industry is not seeing a dramatic fall-off from near-record demand, but executives are anticipating declines in demand should tariffs eat into the economy and cut consumer purchasing power.

Historically, airlines have been a bad sector to invest in during a recession. Households struggling to pay bills and afford groceries are unlikely to book vacations.

On Wednesday, investors were buying in hopes a worst-case scenario could be avoided. The market is up big on reports that the White House is mulling cuts to steep tariffs on Chinese imports, a move that could lessen the blow on consumers and lower the odds the U.S. falls into a recession in the second half of 2025.

Is now the time to buy airline stocks?

Investors should proceed with caution from here. The market has been volatile of late, trading up and down based on the latest tariff headlines. It is dangerous to try to get ahead of rumors, and until there are actual moves to de-escalate, it is possible these gains could evaporate just as quickly as they materialized.

For those willing to accept the turbulence and look past whatever near-term noise might be on the horizon, Delta and United are the safest investment choices from this group. JetBlue and American have relatively high debt burdens and questions about their revenue models, and Southwest is in the process of eliminating consumer-friendly policies and could see a backlash in the quarters to come.

United execs sounded an optimistic tone about the quarters to come even with the headwinds the airline is currently facing. If those headwinds recede, the airline looks best-positioned to gain altitude from here.

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy.