United Airlines Fourth Quarter Report: Surpassed Expectations and Grew

United Airlines Exceeds Success Targets in Fourth Quarter

United Airlines Holdings (UAL) announced its fourth-quarter financial results after the market closed. The company reported revenue of $15.397 billion, surpassing analysts' expectations of $15.396 billion. Additionally, the adjusted earnings per share for the period came in at $3.10, exceeding the anticipated $2.94, giving investors hope.

Revenue Growth and Segment Performance

United Airlines experienced a 9% increase in premium cabin revenue on an annual basis and a 7% rise in core economy revenue. A 10% increase in loyalty program revenue indicates that the company's customer loyalty is strengthening. However, cargo revenue saw a 6% decline. The fourth quarter was recorded as the highest quarterly revenue in United Airlines' history, and it was noted to have the highest quarterly unit revenue for 2025 as well.

CEO's Assessment and 2026 Expectations

CEO Scott Kirby stated, "Our results are driven by an increase in the number of loyal customers to our brand. This was the highest revenue quarter in United's history, and the strong revenue momentum carries into 2026." He emphasized the importance of the strategic direction behind the results.

Financial Condition and Future Projections

The company's capacities also increased by 6.5% year-over-year. Revenue per available seat mile (TRASM) decreased by 1.6%, while cost per available seat mile (CASM) declined by 0.3%. United Airlines generated $8.4 billion in operating cash flow and $2.7 billion in free cash flow for 2025. At the end of the year, total liquidity was reported at $15.2 billion, with total debt and lease liabilities amounting to $25 billion.

2026 Expectations and Development Plans

For the first quarter of 2026, United Airlines expects adjusted earnings per share to be between $1 and $1.50, while projecting that this figure will range from $12 to $14 for the full year. Additionally, adjusted capital expenditures are expected to be below $8 billion in 2026. To enhance customer experience, the company plans to take delivery of over 100 narrow-body aircraft and approximately 20 Boeing 787s.