Prime Highlights:
United Airlines forecasts adjusted earnings of 75 cents to $1.25 per share, exceeding the 54 cents analysts expected.
The airline reported adjusted earnings of $3.26 per share, surpassing expectations of $3.00. Revenue for the quarter reached $14.70 billion, above the forecast of $14.47 billion, marking an 8% year-over-year increase.
United posted a fourth-quarter profit of $985 million, up 64% from the previous year.
Key Background:
United Airlines has exceeded analysts’ expectations for its fourth-quarter results, reporting a significant profit surge that has set a positive outlook for the airline’s 2025 financial performance. For the first quarter of 2025, United has forecast adjusted earnings of 75 cents to $1.25 per share, surpassing the 54 cents analysts had anticipated, according to LSEG estimates.
United’s stock has soared by over 180% over the past year, the largest gain among U.S. carriers, reflecting investor confidence in the airline’s performance. Following the earnings release, United’s shares rose by more than 3% in after-hours trading.
The airline’s fourth-quarter results show substantial growth, with adjusted earnings per share reaching $3.26, exceeding the $3.00 per share expected by analysts. Revenue for the quarter came in at $14.70 billion, surpassing the forecast of $14.47 billion, marking an 8% increase compared to the same period last year. This robust performance was driven by increased demand for premium services, including business class and international travel, as well as growth in United’s lucrative loyalty program.
The airline’s fourth-quarter profit of $985 million represents a 64% year-over-year increase. United’s ability to generate higher revenue from both international and domestic markets, along with an uptick in basic economy-class bookings, played a key role in this performance. Additionally, United’s unit revenue, which measures the airline’s pricing power, turned positive compared to the same quarter in 2023, signaling a strengthening in its pricing strategy.
Looking ahead, United projects full-year adjusted earnings for 2025 to fall between $11.50 and $13.50 per share, aligning with analyst expectations of approximately $12.82 per share. The company’s performance aligns with broader trends in the airline industry, where both United and rival Delta Air Lines have capitalized on strong demand for high-end travel options, including premium seats and international routes. As the airline continues to ramp up competition with Delta for high-spending travelers, United’s positive earnings outlook positions it for another strong year of growth in 2025. The company will hold a conference call with analysts Wednesday at 10:30 a.m. ET to discuss further details.
