United Airlines’ Strong Earnings, Growth Outlook Boosts Stock

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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.

Q1 Earnings Forecast

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.

Stock Performance

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.

Q4 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

Full-Year 2025 Outlook

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.

Industry Trends

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.”

Q4 Results Details

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

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.

CEO Comments

United CEO Scott Kirby said he was upbeat about President Donald Trump’s new administration and said that airlines need improvements to air traffic control, echoing sentiments from other industry CEOs like Delta’s Bastian.

Conclusion

United Airlines’ strong earnings and growth outlook are a testament to the carrier’s ability to adapt to changing market conditions and capitalize on strong demand for air travel. As the airline industry continues to evolve, it will be interesting to see how United and its competitors respond to emerging trends and challenges.

FAQs

Q: What is United Airlines’ Q1 earnings forecast? A: United expects to earn an adjusted 75 cents to $1.25 in the first three months of the year.

Q: How does United’s stock performance compare to other U.S. carriers? A: United’s stock is up more than 180% over the past 12 months, more than any other U.S. carrier.

Q: What is United’s full-year 2025 earnings outlook? A: United expects to grow adjusted earnings to $11.50 to $13.50 in 2025.