Total operating revenue in the fourth quarter (Q4) rose 7.8% year-over-year (YoY) to $14.7 billion compared to a Wall Street estimate of $14.37 billion. Earnings per share (EPS) came in at $3.26 versus an estimated $3.
Shares of United Airlines Holdings Inc (UAL) rose over 3% in Wednesday’s pre-market session after the company’s fourth-quarter earnings topped Wall Street expectations, and projections for the current quarter also beat estimates.
Total operating revenue in the fourth quarter (Q4) rose 7.8% year-over-year (YoY) to $14.7 billion compared to a Wall Street estimate of $14.37 billion. Earnings per share (EPS) came in at $3.26 versus an estimated $3. Net income surged 64% YoY to over a billion dollars during the quarter.
During the quarter, total revenue per available seat mile (TRASM) rose 1.6% YoY to $0.1877.
CEO Scott Kirby noted that 2024 was a strong year across the board for United. “…we enter 2025 with demand trends continuing to accelerate, which puts us on the path to double-digit pre-tax margins,” he said.
For the first quarter of 2025, the airline expects to post earnings between $0.75 and $1.25 per share versus an estimate of $0.54. For 2025, the company expects adjusted earnings at $11.50 to $13.50, versus expectations of $12.82. At the same time, adjusted total capital expenditures is expected below $7 billion.
United Airlines said it sees strong demand trends in the first quarter, with domestic RASM expected to turn solidly positive year-over-year and continued improvement in international RASM.
On Stocktwits, retail sentiment flipped into the ‘extremely bullish’ territory (93/100) from ‘neutral’ a day ago to hit a year-high level. The move was accompanied by ‘extremely high’ retail chatter.
UAL’s Sentiment Meter and Message Volume as of 7:10 a.m. ET on Jan. 22, 2025 | Source: Stocktwits
Retail chatter on Stocktwits reflected an optimistic take on the stock.
United shares have gained over 15% year-to-date, while the stock has risen over 187% over the past year.
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