United Airlines Holdings expects a first-quarter profit well ahead of Wall Street’s estimates as the carrier capitalizes on unusually strong demand for premium and international travel.
Adjusted earnings will be 75 cents to $1.25 a share this quarter, the airline said in a statement Tuesday as it reported fourth-quarter financial results. Analysts had expected 56 cents on average, according to estimates compiled by Bloomberg.
The upbeat outlook highlights how big U.S. carriers anticipate demand above historic norms in what’s typically the industry’s weakest period, after the December holidays and as schools reopen. United last turned a first-quarter profit in 2019, making the forecast a signal that even during the winter months, Americans are continuing to travel across the Atlantic — flights that account for about 20% of United’s revenue, according to Bank of America.
Travel demand is “continuing to accelerate,” United Chief Executive Scott Kirby said in the statement. This year, the carrier plans 800 daily flights to and from 147 international destinations, up from 700 in 2024.
Carriers are also benefiting from higher fares after domestic discount airlines slashed unprofitable routes that weighed on ticket prices over the summer. Rival Delta Air Lines made a similarly bullish first-quarter outlook, citing a healthier balance between industry flying plans and travel demand that should continue through the spring.
United’s shares rose 3.7% after the close of regular trading in New York. American Airlines Group, Southwest Airlines and Delta also gained. United climbed 135% last year, compared with a 23% gain for the S&P 500 Index.
Rising sales throughout United’s aircraft cabins helped lift fourth-quarter adjusted earnings to $3.26 a share, topping Wall Street’s expectation for $3.05. Revenue jumped to $14.7 billion, driven by a 20% gain in basic economy sales and 10% lift from premium fares.
United expects a full-year adjusted profit of $11.50 to $13.50 a share, compared to the $12.84 average of analyst estimates.
