United Airlines forecast first-quarter earnings that surpassed analysts’ estimates as the carrier seeks to grow earnings again in 2025 thanks to strong travel demand.
The airline said Tuesday that it expects to earn an adjusted 75 cents to $1.25 in the first three months of the year, above the 54 cents analysts had expected, according to LSEG estimates.
United’s stock is up more than 180% over the past 12 months as of Tuesday’s close, more than any other U.S. carrier. United shares were up more than 3% in extended trading after it released results.
Here is what United reported for the fourth quarter compared with what Wall Street expected, based on estimates compiled by LSEG:
- Earnings per share: $3.26 adjusted vs. $3.00 expected
- Revenue: $14.70 billion vs. $14.47 billion expected
For full-year 2025, United expects to grow adjusted earnings to $11.50 to $13.50, in line with expectations of about $12.82, according to LSEG.
United and rival Delta have benefitted from strong demand for pricier seats like in business class, international travel and their massive loyalty programs. Delta’s CEO Ed Bastian earlier this month said he expects 2025 to be the carrier’s “best financial year in our history.”
United reported a $985 million profit for the fourth quarter, up 64% over last year, on $14.70 billion in revenue, which was up about 8% from a year earlier. Adjusting for one-time items, United reported $3.26 a share for the fourth quarter, also ahead of expectations.
Loyalty-program revenue, as well as international, domestic and basic economy-class revenue all rose from a year earlier and unit revenue, which measures pricing power, turned positive over the same quarter of 2023.