What to Expect From United Airlines’ Next Quarterly Earnings Report

Chicago-based United Airlines Holdings, Inc. (UAL) is a major American airline. Its offerings include transportation, catering, ground handling, maintenance services, and more. With a market cap of $23.4 billion, United provides air transportation services in the Americas, Indo-Pacific, and EMEA.

The airline giant is set to unveil its Q1 results after the markets close on Tuesday, Apr. 15. Ahead of the event, UAL is expected to report a non-GAAP EPS of $0.85, representing a significant jump from the negative $0.15 reported in the year-ago quarter. Furthermore, the company has an impressive earnings surprise history. United has surpassed the Street’s bottom-line estimates in each of the past four quarters. In the previous quarter, its adjusted EPS came in at $3.26, surpassing the consensus estimates by 8.3%.

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For the full fiscal 2025, United’s earnings are expected to grow to $12.54, up 18.2% from $10.61 reported in fiscal 2024. Moreover, the company’s earnings are expected to further advance by 12.4% year-over-year to $14.10 per share in fiscal 2026.

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Meanwhile, UAL stock has soared 35% over the past 52-week period, significantly outperforming the Industrial Select Sector SPDR Fund’s (XLI) marginal 64 bps uptick and the S&P 500 Index’s ($SPX) 3.6% gains during the same time frame.

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Despite beating Street expectations, United Airlines’ stock prices dropped 2.3% in the trading session after the release of its Q4 2024 results on Jan. 21. During Q4, UAL set a company record for number of passengers carried in a single quarter, leading to a solid 7.8% year-over-year growth in overall topline to $14.7 billion. Meanwhile, due to a decrease in fuel expenses, United reported a notable margin expansion. Its operating income for the quarter soared 50.6% year-over-year to $1.5 billion. However, UAL’s guidance may have failed to impress investors.

However, analysts remain confident in UAL’s financials and prospects. The consensus opinion on UAL is extremely bullish, with an overall “Strong Buy” rating. Among the 21 analysts covering the stock, 20 recommend “Strong Buy” while one suggests a “Hold” rating.

Its mean price target of $125.07 suggests a staggering 107.7% upside potential from current price levels.