In the past week, United Airlines UAL, Alaska Air Group ALK and American Airlines AAL reported better-than-expected earnings per share and revenues for the fourth quarter of 2024. Results were aided by upbeat air travel demand and low fuel costs. A fourth-quarter 2024 earnings-related update was also covered in the previous week’s round-up.

Meanwhile, JetBlue Airways JBLU became the first airline to use Venmo for flights. Venmo is a mobile payment app that allows users to send and receive money. An expansion-related update was also available from JBLU in the past week.

Recap of the Recent Most Important Stories

1.  United Airlines reported fourth-quarter 2024 earnings (excluding 31 cents from non-recurring items) of $3.26, which surpassed the Zacks Consensus Estimate of $3.01. The bottom line increased 63% on a year-over-year basis. Operating revenues of $14.7 billion beat the Zacks Consensus Estimate of $14.4 billion. The top line increased 7.8% year over year, driven by a 6.9% rise in passenger revenues. For the first quarter of 2025, UAL expects adjusted EPS between 75 cents and $1.25. For 2025, the company expects adjusted EPS of $11.50-$13.50.

UAL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

2. Alaska Air reported solid fourth-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and skyrocketed more than 100% on a year-over-year basis. The bottom line benefited from solid revenue growth, as well as cost and operational performance throughout the quarter and holiday travel periods. The inclusion of the performance of Hawaiian Airlines acquired in September 2024 also boosted ALK’s results.

3. American Airlines’ fourth-quarter 2024 earnings (excluding 2 cents from non-recurring items) of 86 cents per share beat the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, AAL reported earnings of 29 cents per share. Operating revenues of $13.66 billion surpassed the Zacks Consensus Estimate of $13.42 billion and increased 4.6% year over year. AAL expects a loss per share of 20-40 cents in the first quarter of 2025.

4. In a move aimed at increasing the convenience of passengers, JetBlue has decided to accept Venmo online bookings. Venmo payment options are available on the airline’s website and will roll out on their mobile app shortly. The move is part of the low-cost carrier’s efforts to boost profits by improving service.

In a separate development, JetBlue launched flights from Manchester-Boston Regional Airport. The company’s daily, year-round service to Orlando International Airport and three times weekly, seasonal service to Southwest Florida International Airport in Fort Myers take off from Manchester. The direct flight between Manchester and Fort Lauderdale-Hollywood International Airport is being launched today, and it will operate four times weekly during winter.

Performance

The following table shows the price movement of the major airline players over the past week and during the last six months.

Image Source: Zacks Investment Research

The NYSE ARCA Airline Index grew 2.2% to $73.22 over the past week, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has risen 34.5%.

What’s Next in the Airline Space?

Fourth-quarter 2024 earnings results from many carriers are expected in the coming days. Passenger volumes are likely to have been high, aiding their performances in the fourth quarter of 2024. Labor costs are likely to have been high.

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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report

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