A United Airlines plane heads toward a runway at Newark Liberty International Airport, in front of the Lower Manhattan skyline and New York’s One World Trade Center, December 4, 2024, in Newark, New Jersey.
Gary Hershorn | Corbis News | Getty Images
United Airlines forecasts first-quarter profits that beat analyst estimates, as the carrier looks to increase profits again in 2025 thanks to strong travel demand.
The airline said Tuesday it expects to earn 75 cents adjusted to $1.25 in the first three months of the year, above the 54 cents expected by analysts, according to LSEG estimates.
United’s shares are up more than 180% over the past 12 months as of Tuesday’s close, more than any other U.S. carrier. Shares of United rose more than 3% in extended trading following the earnings release.
Here’s what United reported for the fourth quarter compared to what Wall Street expected, based on estimates compiled by LSEG:
- Earnings per share: $3.26 adjusted vs. $3.00 expected
- Income: $14.70 billion versus $14.47 billion expected
For the full year 2025, United expects to increase its adjusted profit to between $11.50 and $13.50, matching expectations of around $12.82, according to LSEG.
United and rival Delta have benefited from strong demand for more expensive seats, such as business class, for international travel and for their massive loyalty programs. Delta CEO Ed Bastian said earlier this month that he expects 2025 to be the “best fiscal year in our history” for the carrier.
United reported fourth-quarter profit of $985 million, up 64% from a year ago, on revenue of $14.70 billion, up about 8% from last year. compared to the previous year. Including one-time items, United reported $3.26 per share for the fourth quarter, also ahead of expectations.
Loyalty program revenues, as well as international, domestic and basic economy revenues, all increased from the previous year and unit revenues, which measure pricing power, turned positive over the of the same quarter of 2023.
