United Airlines stock advanced early Wednesday after the airline topped Q4 earnings estimates and provided a strong guidance.
United Airlines reported earnings swelled 63% to $3.26 per share adjusted from $2 per share last year. Revenue rose 7.8% to $14.7 billion.
FactSet analysts expected earnings of $3.04 per share on $14.4 billion in revenue.
The airline reported strong demand across its offerings. United's Q1 premium revenue increased 10%, corporate revenue rose 7%, while basic economy revenue jumped 20% year over year.
Loyalty revenue also increased 12%, while cargo revenue spiked 30% from last year, respectively.
Capacity rose 6.2% from last year, while total revenue per available seat mile (TRASM) ticked up 1.6%.
United in 2024 also set a company record for the most flights operated and most customers carried in its history.
"United had a unique strategy coming out of COVID and our people have delivered for customers leading to a structurally and permanently changed industry," CEO Scott Kirby said in the release. "2024 was a strong year across the board for United as we've become the leading global airline and we enter 2025 with demand trends continuing to accelerate which puts us on the path to double-digit pretax margins."
United Airlines Guidance
United guided Q1 earnings to a range of 75 cents to $1.25 per share adjusted, compared to a loss of 15 cents the year prior. The company sees 2025 adjusted earnings of $11.50-$13.50 per share. Analysts polled by FactSet forecast Q1 earnings come out to 60 cents per share, with 2025 EPS of $12.83.
The airline forecasts expects domestic revenue per available seat mile (RASM) to turn "solidly positive" year over year, with continued improvement in international RASM.
United Airlines Stock Off To A Strong 2025
UAL stock popped to a record 116 shortly after the open Wednesday but reversed to a 2.3% decline. Shares surged 3.9% in premarket trade.
United Airlines advanced more than 11% already in 2025.
Rival Delta Air Lines eased less than 1% Wednesday. Shares climbed in early trade to flirt with fresh record highs.
American Airlines on Wednesday hit a 52-week high before paring gains to 0.11%. American Airline reports Q4 results on Thursday. FactSet expects earnings will increase nearly 128% to 66 cents per share on 2.8% revenue growth to $14.26 billion.
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