A United Airlines plane taxis to the runway at Newark Liberty International Airport in front of the lower Manhattan skyline and One World Trade Center in New York City on December 4, 2024 in Newark, New Jersey.
Gary Hershorn | Corbis news | Getty Images
United Airlines forecast first-quarter earnings that beat analysts’ estimates as the carrier looks to boost earnings again in 2025 thanks to strong travel demand.
The airline said on Tuesday it expected to earn an adjusted 75 cents to $1.25 in the first three months of the year, higher than the 54 cents expected by analysts, according to LSEG estimates.
United shares are up more than 180% in the past 12 months as of Tuesday’s close, more than any other US carrier. United shares rose more than 3% in extended trading after the results were announced.
Here’s what United reported for the fourth quarter compared to Wall Street expectations, based on estimates compiled by LSEG:
- Earnings per share: $3.26 adjusted vs $3.00 expected
- Income: $14.70 billion versus the $14.47 billion expected
For full 2025, United expects adjusted earnings to grow to $11.50 to $13.50, in line with expectations of about $12.82, according to LSEG.
United and rivals Delta they have benefited from high demand for more expensive seats like business class, international travel and their huge loyalty programs. Delta CEO Ed Bastian earlier this month said he expects 2025 to be “the best financial year in our history” for the carrier.
United reported fourth-quarter profit of $985 million, up 64% from last year, on $14.70 billion in revenue, up about 8% from a year earlier. Adjusted for one-time items, United reported $3.26 per share for the fourth quarter, also beating expectations.
Loyalty program revenue, as well as international, domestic and basic economy class revenue increased year-over-year, and unit revenue, which measures pricing power, turned positive in the same quarter of 2023.
