United Airlines Holdings Inc (NASDAQ:UAL) stock rose 0.086% (As on January 22, 11:17:44 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth-quarter earnings, driven by strong revenue growth and ongoing demand recovery across domestic and international markets. US carriers are also benefiting from higher fares after domestic discount airlines slashed unprofitable routes that weighed on ticket prices over the summer. The company’s investments have set United apart and customers continue to show more preference for the United brand with strong demand for all products: in the quarter premium revenue was up 10%, corporate revenue was up 7% and revenue from Basic Economy was up 20% year-over-year. Other revenue streams like loyalty and cargo had robust growth in the quarter with revenues up 12% and 30% year-over-year, respectively. Looking ahead to 2025 United sees strong demand trends in the first quarter with domestic RASM expected to turn solidly positive year-over-year, as well as continued improvement in international RASM.
Meanwhile, United announced the largest international expansion in the airline’s history, bringing service to nine new international destinations for Summer 2025, eight of which are not served by any other U.S. carrier.
UAL in the fourth quarter of FY 24 has reported the adjusted earnings per share of $3.26, beating the analysts’ estimates for the adjusted earnings per share of $3.01, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 7.8 percent to $14.7 billion in the fourth quarter of FY 24 , beating the analysts’ estimates for revenue of $14.39 billion.
United projected adjusted earnings per share for the first quarter of 2025 to range between $0.75 and $1.25. Analysts had expected 56 cents on average, according to estimates compiled by Bloomberg. For the full year, it forecast adjusted diluted EPS to be in the range of $11.50 to $13.50, compared to the $12.84 average of analyst estimates.
The upbeat outlook highlights how big US 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,”as per the company. This year, the carrier plans 800 daily flights to and from 147 international destinations, up from 700 in 2024.