A United Airlines airplane proceeds to a runway at Newark Liberty International Airport in front of the skyline of lower Manhattan and One World Trade Center in Latest York City on December 4, 2024, in Newark, Latest Jersey.Â
Gary Hershorn | Corbis News | Getty Images
United Airlines forecast first-quarter earnings that surpassed analysts’ estimates because the carrier seeks to grow earnings again in 2025 because of strong travel demand.
The airline said Tuesday that it expects to earn an adjusted 75 cents to $1.25 in the primary three months of the yr, above the 54 cents analysts had expected, in response to LSEG estimates.
United’s stock is up greater than 180% over the past 12 months as of Tuesday’s close, greater than another U.S. carrier. United shares were up greater than 3% in prolonged trading after it released results.
Here’s what United reported for the fourth quarter compared with what Wall Street expected, based on estimates compiled by LSEG:
- Earnings per share:Â $3.26 adjusted vs. $3.00 expected
- Revenue:Â $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 step with expectations of about $12.82, in response 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 yr in our history.”
United reported a $985 million profit for the fourth quarter, up 64% over last yr, on $14.70 billion in revenue, which was up about 8% from a yr earlier. Adjusting for one-time items, United reported $3.26 a share for the fourth quarter, also ahead of expectations.
Loyalty-program revenue, in addition to international, domestic and basic economy-class revenue all rose from a yr earlier and unit revenue, which measures pricing power, turned positive over the identical quarter of 2023.
