United Airlines (UAL) stock rose early Wednesday after the airline posted a fourth quarter earnings beat, a week after rival Delta (DAL) saw premium and business travelers boost its results. Chicago-based United posted record operating revenue of $15.4 billion after the bell on Tuesday, compared with estimates of $15.37 billion, per Bloomberg consensus. That was slightly higher than in Q3 and up nearly 5% compared to a year ago. United reported adjusted earnings per share of $3.10 vs. $2.92 expected, wi ...

The carrier said premium and loyalty revenue both grew faster than overall sales in the fourth quarter. ...

Core Viewpoint - United Airlines is poised to achieve record earnings in 2025 due to strong travel demand across both premium and no-frills ticket segments [1]. Financial Performance - The airline expects adjusted earnings per share (EPS) between $12 and $14 for the year, aligning with analyst expectations of $13.16 [2]. - For Q1, United forecasts EPS of $1 to $1.50, compared to analyst estimates of $1.13 [2]. - United reported adjusted full-year 2025 earnings of $10.20 per share, reflecting an 8% year-over-year increase, with adjusted net income reaching $3.5 billion, up 6% from the previous year [2]. Quarterly Results - In Q4, United's profit increased by 6% year-over-year to $1.04 billion, or $3.19 per share, with capacity rising by 6.5% compared to Q4 2024 [4]. - Adjusted earnings for Q4 were $1.01 billion, or $3.10 per share, exceeding expectations of $2.94 [6]. - Revenue for Q4 was reported at $15.4 billion, matching analyst expectations [6]. Market Position - United Airlines, alongside Delta Air Lines, is forecasting potential record earnings, contributing significantly to the U.S. airline industry's profits in the first nine months of 2025 [3]. - Premium revenue for United rose by 9% in Q4 and 11% for the full year compared to 2024, indicating a strong demand for higher-priced tickets [4]. External Factors - The longest government shutdown impacted United's pretax results by $250 million in Q4 [5].

Core Insights - United Airlines reported strong financial results for FY25, with diluted earnings per share of $10.20, an 8% increase year-over-year, and adjusted diluted earnings per share of $10.62, marking it as the only U.S. airline expected to grow adjusted EPS for FY25 [1][2] - The airline achieved a record revenue of $15.4 billion in Q4, the highest quarterly revenue in its history, and flew a record 181 million passengers throughout the year [1][3] Financial Performance - Full-year pre-tax earnings reached $4.3 billion, with a pre-tax margin of 7.3%, and adjusted pre-tax earnings of $4.6 billion, with an adjusted pre-tax margin of 7.8% [2][10] - Total operating revenue for FY25 grew 3.5% year-over-year to $59.1 billion, the highest in United's history [2][10] - Operating cash flow was $8.4 billion, and free cash flow was $2.7 billion in 2025, with expectations to generate a similar level in 2026 [2][10] Operational Highlights - United operated the largest mainline schedule in its history, averaging over 496,000 passengers daily and achieving the lowest seat cancellation rate in company history [3][11] - The airline's premium revenue increased by 9% in Q4 and 11% for the full year, while loyalty revenue rose by 10% in Q4 and 9% for the full year [4][11] - United's Connection Saver program saved over one million potential missed connections in 2025, a 42% increase from 2024 [3][16] Customer Experience and Brand Loyalty - United's customer-first policies during the government shutdown led to the highest-ever monthly Net Promoter Score (NPS) in November [5][16] - The airline's investments in new aircraft and technology have contributed to winning brand-loyal customers, with a record-high NPS achieved in Q4 [3][16] - United's app enhancements and new features have led to 85% of customers using the app on their travel day, improving customer satisfaction [16][18] Future Outlook - In 2026, United plans to take delivery of over 100 narrowbody aircraft and approximately 20 Boeing 787 aircraft, aiming to expand its network profitably [8][17] - The airline is also making significant upgrades at its Washington Dulles and Houston hubs to enhance customer experience [8][17]

Financial Performance - Full-year diluted earnings per share (EPS) reached $10.20, an 8% increase year-over-year, with adjusted diluted EPS at $10.62[1] - Pre-tax earnings for the full year were $4.3 billion, with a pre-tax margin of 7.3%, and adjusted pre-tax earnings of $4.6 billion, with an adjusted pre-tax margin of 7.8%[11] - Net income for the year ended December 31, 2025, was $3,353 million, a 6.5% increase from $3,149 million in 2024[37] - Earnings per share (diluted) for Q4 2025 was $3.19, an 8.1% increase from $2.95 in Q4 2024[37] - Adjusted operating income for the year ended December 31, 2025, was $4,972 million, down 4.5% from $5,208 million in 2024[61] Revenue and Passenger Metrics - Q4 revenue was $15.4 billion, marking the highest quarterly revenue in United's history, with a 4.8% increase compared to Q4 2024[11] - United flew a record 181 million passengers in 2025, averaging over 496,000 passengers daily[2] - Passenger revenue for Q4 2025 was $13,926 million, a 4.9% increase from $13,275 million in Q4 2024[37] - Total operating revenue for the year ended December 31, 2025, reached $59,070 million, reflecting a 3.5% increase compared to $57,063 million in 2024[37] - Total passengers increased to 45,679 thousand in Q4 2025, up 3.0% from 44,344 thousand in Q4 2024[42] Operating Expenses and Costs - Operating expenses for Q4 2025 totaled $14,011 million, a 6.2% increase from $13,192 million in Q4 2024[37] - Salaries and related costs increased by 4.6% to $4,524 million in Q4 2025 compared to $4,325 million in Q4 2024[37] - Aircraft fuel costs rose by 9.2% to $2,923 million in Q4 2025 from $2,676 million in Q4 2024[37] - The average aircraft fuel price per gallon was $2.49 in Q4 2025, an increase of 3.6% from $2.40 in Q4 2024[55] Cash Flow and Capital Expenditures - United's operating cash flow for the year was $8.4 billion, with free cash flow of $2.7 billion, and similar free cash flow is expected in 2026[11] - Free cash flow for Q4 2025 was $(579) million, compared to $901 million in Q4 2024, reflecting a significant decline[58] - Adjusted capital expenditures for Q4 2025 were $1,916 million, a decrease of 19.5% from $2,384 million in Q4 2024[58] - The company had capital expenditures of $(5,874) million in 2025, compared to $(5,615) million in 2024, an increase of 4.6%[66] Debt and Assets - Adjusted total debt decreased to $32,094 million in 2025 from $34,866 million in 2024, a reduction of $2,772 million[59] - Total assets increased to $76,448 million as of December 31, 2025, compared to $74,083 million in 2024[63] - Cash and cash equivalents decreased to $5,942 million in 2025 from $8,769 million in 2024, a decline of $2,827 million[63] Special Charges and Gains - The company recorded a special charge of $561 million in 2025 related to labor contract ratification bonuses for employees[68] - The company reported net gains of $303 million on the sale of assets, primarily from aircraft sale-leaseback transactions[69] Tax and Interest - The effective tax rate for the year ended December 31, 2025, was 22.1%, down from 24.4% in 2024, due to a release of valuation allowance related to realized capital gains[71] - The company reported a decrease in interest expense by 12.1% to $324 million in Q4 2025 from $369 million in Q4 2024[37] Operational Efficiency - The airline achieved its lowest seat cancellation rate in history and had the lowest cancellation rate among large U.S. network carriers in 2025[10] - The government shutdown impacted pre-tax earnings by approximately $250 million in Q4 2025[11] - United plans to take delivery of over 100 narrowbody aircraft and approximately 20 Boeing 787 aircraft in 2026, the most widebody aircraft delivered in a year by any U.S. airline since 1988[6] Customer Satisfaction - United's Net Promoter Score (NPS) reached its highest-ever monthly score in November 2025, despite the government shutdown[4]

Core Viewpoint - United Airlines Holdings, Inc. is experiencing a positive trend in analyst price targets, reflecting strong confidence in its operational performance and growth potential [2][4][6] Price Target Trends - The average price target for UAL has increased from $123.04 a year ago to $144.8 last month, indicating a significant upward revision and growing optimism among analysts [2][4] - The average price target in the last quarter was $138.44, showing a steady increase from the previous quarter, attributed to strategic initiatives and preparations for the upcoming Q4 earnings call [3][4] Strategic Initiatives - United Airlines is implementing strategic changes, including welcoming new executives and expanding its fleet with luxurious Dreamliner jets, which contribute to the optimistic outlook [2][6] - Despite the anticipated decline in Q4 earnings, the company's stock is approaching its all-time high, suggesting resilience in its market position [5][6]

Group 1 - United Airlines Holdings, Inc. (NASDAQ:UAL) is highlighted as a stock to watch, with a bullish outlook from Jim Cramer, who emphasizes the ongoing travel theme post-COVID [1] - Cramer identifies UAL as part of the "big five travel" stocks, which also includes Delta, American Express, Booking Holdings, and Marriott, suggesting they tend to trade together and are all strong investment options [1] - UAL provides a comprehensive range of services including passenger and cargo air transportation, ground handling, flight training, loyalty programs, and maintenance services, indicating its diversified business model [2] Group 2 - Cramer notes that UAL's performance can provide insights into economic conditions, particularly distinguishing between corporate customers and regular passengers, which can be indicative of broader economic trends [2] - While UAL is recognized for its investment potential, there is a suggestion that certain AI stocks may offer greater upside potential and lower downside risk, indicating a competitive investment landscape [2]

United Airlines Holdings, Inc. (NASDAQ:UAL) will release earnings results for the fourth quarter, after the closing bell on Tuesday, Jan. 20.Analysts expect the Winona, Minnesota-based company to report quarterly earnings at $2.94 per share, down from $3.26 per share in the year-ago period. The consensus estimate for United Airlines' quarterly revenue is $15.34 billion, up from $14.7 billion a year earlier, according to data from Benzinga Pro.On Dec. 10, Boeing Company (NYSE:BA) and United Airlines tested a ...

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U.S. stock futures fell on Tuesday following Friday’s declines. Futures of major benchmark indices were lower.The stocks extended the negative momentum seen during the holiday break as President Donald Trump's threat to impose escalating tariffs on Europe over the Greenland dispute continued to roil global markets.Meanwhile, the 10-year Treasury bond yielded 4.28%, and the two-year bond was at 3.57%. The CME Group's FedWatch tool‘s projections show markets pricing a 95% likelihood of the Federal Reserve lea ...