American Airlines Group Inc. continues to deliver good news! United Airlines Holdings, Inc. (UAL.US) exceeds expectations in Q4 performance, with sustained high travel demand.

date
22/01/2025
avatar
GMT Eight
United Airlines Holdings, Inc. (UAL.US) announced its fourth-quarter performance for 2024. The data shows that the company's Q4 revenue increased by 8% year-on-year to $14.7 billion, surpassing market expectations, mainly due to a 20% growth in sales of basic economy seats and a 10% increase in premium ticket prices; adjusted earnings per share rose to $3.26, exceeding market expectations of $3.05. United Airlines Holdings, Inc. expects profits in the first quarter of 2025 to significantly exceed Wall Street's expectations, as the company has fully leveraged the exceptionally strong demand for high-end and international travel. United Airlines Holdings, Inc. expects adjusted earnings per share for the first quarter to be between $0.75 and $1.25, compared to analysts' previous average expectation of $0.56. The company also expects full-year adjusted earnings per share to be between $11.50 and $13.50, compared to analysts' average estimate of $12.84. This optimistic outlook highlights that major U.S. airlines are forecasting demand to surpass historical normal levels during what is typically the weakest period of the aviation industry - after the December holidays and back-to-school season. United Airlines Holdings, Inc. last achieved a profit in the first quarter in 2019, and this forecast suggests that Americans are continuing to travel even in winter, across the Atlantic and to China. Bank of America Corp's data shows that such flights account for about 20% of United Airlines Holdings, Inc.'s revenue. United Airlines Holdings, Inc. CEO Scott Kirby stated in a release that travel demand is "continuing to ramp up." This year, the airline plans to operate 800 flights per day to 147 international destinations, compared to 700 flights in 2024. American Airlines Group Inc. has also benefited from rising ticket prices as U.S. low-cost airlines cut unprofitable routes, which had depressed ticket prices last summer. Competitor Delta Air Lines, Inc. (DAL.US) has also made similarly optimistic forecasts for the first quarter, stating that the balance between industry flight schedules and travel demand is becoming healthier, a trend that is expected to continue into spring. After Tuesday's stock market close, United Airlines Holdings, Inc. saw its stock price rise by 3.8%, and the U.S. airline sector also saw gains, with American Airlines Group Inc. (AAL.US) and Delta Air Lines, Inc. rising by nearly 2%. United Airlines Holdings, Inc. rose by 135% last year, compared to a 23% increase in the S&P 500 index.

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