United Airlines lands a record profit to close out 2024
The company said it flew a record 174 million passengers last year.
United is cashing in on flyers who want premium experiences, capping a banner 2024 with a blowout fourth quarter.
In its report after the closing bell Tuesday, United Airlines reported a $985 million profit, a record for the fourth quarter and a 64% surge from a year earlier. Adjusted earnings of $3.26 a share came in far ahead of analysts’ estimates of $3.04.
Shares jumped 3.4% after-hours as the airline also forecast its first-quarter profit much higher than Wall Street was expecting.
For the year, United said its annual passenger revenue climbed about 6% from 2023 after flying a record 174 million customers. It spent about 7% less on fuel over the year.
Analysts see clear skies ahead for United and its largest rivals, Delta Air Lines and American Airlines. Keeping profits at cruising altitude: a continued rebound in business travel and customers’ appetite for premium seating. Delta, for its part, said it expects 2025 to be its best financial year in its history.
Like its rivals, United has been trying to win flyers over with loyalty-program benefits and premium experiences. The airline will install larger, 4K seatback screens this year, and Delta will join the trend next year. Earlier this month, United said it’s moving up its Starlink-powered in-flight Wi-Fi rollout. (It also changed its mind and said free Wi-Fi is only for loyalty members.) United reported solid loyalty-program revenue growth in Q4, up 12% year over year.
United shares have nearly tripled in value over the past 12 months, up more than 185% in the period as of market close today.
