United Airlines (NASDAQ:UAL) delivered quarterly earnings above Wall Street expectations and projected the highest revenue in its history for the fourth quarter, driven by robust travel demand and strong customer loyalty.
The airline reported adjusted earnings of $2.78 per share for the third quarter, exceeding the $2.67 forecast by analysts. Revenue increased 2.6% year-over-year to $15.2 billion, slightly below the consensus estimate of $15.33 billion.
Demand for premium seating and loyalty program strength provided a lift to results, although operational disruptions at Newark — one of United’s major hubs — weighed on overall revenue performance.
United’s stock fell more than 2% in premarket trading on Thursday.
“[W]e would caution investors from focusing too much on third-quarter revenue coming in below consensus. We believe investors should instead focus on the resilience enabled by United’s diverse revenue streams and the encouraging demand environment exiting the year,” analysts at TD Securities said in a note.
For the fourth quarter, United forecast adjusted earnings between $3 and $3.50 per share, ahead of market expectations of $2.82, and said it anticipates the period will deliver record operating revenue, supported by higher fares stemming from reduced seat capacity across the industry.
CEO Scott Kirby highlighted the impact of the airline’s investments in passenger experience — including upgraded seating, faster inflight Wi-Fi through Starlink, and enhanced service in all cabins — which have built a loyal customer base and helped the carrier navigate a volatile year.
United said it plans to invest more than $1 billion in customer upgrades this year and an additional $1 billion in 2026. Premium cabin revenue rose 6% year-on-year in the third quarter, while loyalty revenue increased by 9%.
The Chicago-based airline operated its largest summer mainline schedule ever and achieved the lowest third-quarter cancellation rate in its history. Capacity expanded 7.2% from the previous year, though unit revenue declined by 4.3%.
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