A record-breaking profit was reported by United Airlines in the fourth quarter of 2024, with total operating revenue of US$14.7 billion (A$23.433 billion), an increase of 7.8% over the same period last year. Adjusted earnings per share (EPS) reached $3.26, beating analyst estimates of $2.99.
Demand across all revenue streams contributed to this strong performance. There was a 10% increase in premium revenue, a 7% increase in corporate revenue, and a 20% increase in basic economy revenue.
Its pre-tax earnings for the quarter were $1.3 billion, with a pre-tax margin of 8.9%. The adjusted pre-tax earnings were $1.4 billion, resulting in a margin of 9.7%. Net income for the quarter was $1 billion and adjusted net income was $1.1 billion.
These figures reflect the airline's successful implementation of its United Next strategy.
Looking ahead to 2025, United Airlines anticipates robust demand trends, with domestic revenue per available seat mile (RASM) expected to turn solidly positive year-over-year and continued improvement in international RASM. The airline plans to continue its growth trajectory, aiming for double-digit pre-tax margins.
United Airlines CEO Scott Kirby highlighted the company's unique strategy post-COVID, which has resulted in a structurally and permanently changed industry.
"Our people have delivered for customers leading to a structurally and permanently changed industry," said Kirby. "2024 was a strong year across the board for United as we've become the leading global airline and we enter 2025 with demand trends continuing to accelerate which puts us on the path to double-digit pre-tax margins."
United Airlines also announced plans to revamp its fleet with updated aircraft, including electric jets and 787s, while reducing emissions by 2050. The airline is investing in supersonic planes and partnering with startups for eVTOLs (electric vertical takeoff and landing aircraft) and hydrogen-fuelled planes to enhance regional travel.
Additionally, United is accelerating its timeline to bring Starlink's high-speed internet connectivity to its entire fleet, starting with regional aircraft this year and mainline planes by the end of the year.
At the time of writing, United Airlines Holdings Inc (NASDAQ: UAL) was trading at US$110.52 per share. The market cap was approximately US$36.35 billion.
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