United Airlines Shares Rise 3% After Beating Earnings and Revenue Estimates

Core Viewpoint - United Airlines reported strong fourth-quarter results, exceeding Wall Street expectations in both profit and revenue, driven by robust demand from premium travelers [1][2]. Financial Performance - The company posted diluted earnings per share of $3.19 for the fourth quarter, surpassing the consensus estimate of $2.96 [1]. - Revenue for the quarter reached $15.4 billion, slightly above the forecast of $15.39 billion [1]. - For the full year 2025, diluted earnings per share increased by 8% to $10.20, or $10.62 on an adjusted basis [3]. Future Guidance - United Airlines guided for adjusted earnings per share of $12 to $14 in 2026, with plans to take delivery of over 120 aircraft and expand its route network [2]. - The airline expects to be the only major U.S. airline to grow adjusted earnings per share in 2025 [3]. Passenger and Revenue Metrics - A record 181 million passengers flew with United in 2025 [2]. - Premium revenue increased by 9% in the fourth quarter, while loyalty revenue rose by 10% [2]. - Capacity expanded by 6.5% during the quarter, although total revenue per available seat mile declined by 1.6% year over year [2]. Impact of External Factors - A prolonged U.S. government shutdown that ended in November reduced pre-tax earnings by approximately $250 million during the quarter [3].