United Airlines forecast a first-quarter profit that beat analysts' estimates because the airline goals for an additional profit rise in 2025 due to strong travel demand.
The airline said Tuesday it expects adjusted profit of 75 cents to $1.25 in the primary three months of the 12 months, above the 54 cents analysts had expected, in keeping with LSEG estimates.
United's stock has risen greater than 180% over the past 12 months as of Tuesday's close, greater than another U.S. airline.
Here's what United reported for the fourth quarter in comparison with Wall Street's expectations, based on LSEG estimates:
- Earnings per share: $3.26 adjusted vs. $3.00 expected
- Revenue: $14.70 billion versus expected $14.47 billion
For full-year 2025, United expects adjusted earnings to grow to $11.50 to $13.50, according to expectations of about $12.82, in keeping with LSEG.
United and rivalry delta have benefited from strong demand for dearer seats akin to business class, international travel and their extensive loyalty programs. Delta CEO Ed Bastian said earlier this month that he expects 2025 to be the airline's “best fiscal year in our history.”
United reported fourth-quarter profit of $985 million, up 64% from a 12 months ago, on revenue of $14.70 billion, up about 8% from a 12 months ago. Adjusted for one-time items, United reported $3.26 per share for the fourth quarter, also above expectations.
Loyalty program revenue, in addition to international, domestic and one-way economy class revenue, all rose year-over-year, and unit revenue, which measures pricing power, turned positive in the identical quarter of 2023.
United CEO Scott Kirby expressed optimism about President Donald Trump's recent administration and said airlines need improvements in air traffic control, echoing the feelings of other industry CEOs akin to Delta's Bastian.
“I spoke to the president and we had a great conversation,” Kirby told CNBC's “Squawk on the Street” on Wednesday. “He knows a lot about airplanes and airspace.”
He said he also spoke with Trump's nominee to guide the Transportation Department, Sean Duffy, who had a largely friendly confirmation hearing before a Senate panel last week.
United and other airlines have faced delays in delivering recent aircraft from Airbus and, much more so, Boeingwhose recent CEO Kelly Ortberg is tasked with addressing production defects which have slowed production.
United CFO Mike Leskinen said during Wednesday's earnings call that Boeing is making progress and that the airline has turn into more “optimistic” in regards to the long-delayed and yet-to-be-certified Boeing Max 10, the world's largest model. Gang Max family.
A 12 months ago, United announced that it was working on fleet plans without the Max 10. It was previously expected to fly this in 2020.
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