United Airlines Holdings Inc (UAL) saw its stock price surge 5.84% in after-hours trading on Tuesday, following the release of better-than-expected first-quarter 2025 earnings and optimistic future guidance. The airline demonstrated resilience in the face of an uncertain macroeconomic environment, beating analyst estimates and providing a positive outlook for the coming quarters.
United reported adjusted earnings per share of $0.91 for Q1 2025, significantly surpassing the analysts' expectations of $0.76 per share. This marked a substantial improvement from the $0.15 loss per share reported in the same quarter last year. The company's revenue for the quarter reached $13.21 billion, representing a 5.4% increase year-over-year, though slightly below the expected $13.26 billion.
Looking ahead, United Airlines provided strong guidance for both the second quarter and full year 2025. For Q2, the company expects adjusted earnings per share between $3.25 and $4.25. The full-year outlook remains optimistic, with projected adjusted EPS ranging from $11.50 to $13.50 in a stable economic environment. However, the airline also addressed potential challenges, noting that in a recessionary scenario, full-year adjusted EPS could range from $7.00 to $9.00.
United CEO Scott Kirby commented on the results, stating, "Our strategy coming out of the COVID pandemic was simple: Build the best airline in the world to attract brand-loyal customers. The people of United Airlines have executed and built that airline." He added that the company's United Next strategy is on track and will allow United to thrive in any demand environment.
Despite the positive results, United announced it is removing 4 percentage points of scheduled domestic capacity starting in the third quarter of 2025, and reducing off-peak flying on lower demand days. This approach is expected to continue into the fourth quarter. However, the company reported strong growth in premium cabin revenue, up 9.2%, and international travel, with Atlantic revenue per seat-mile up 4.7% and Pacific up 8.5% year-over-year.
The market responded favorably to United's earnings report and future outlook, with the stock climbing 5.84% in after-hours trading. This surge comes as a welcome development for investors, as United's shares had been down approximately 31% year-to-date prior to the earnings release.
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