Why United Airlines Stock Is Flying Higher After Earnings
United Airlines beat expectations for the first quarter and its stock is by soaring. Here's what you need to know.
United Airlines (UAL) stock is flying higher Wednesday after the company beat analysts' top- and bottom-line estimates for its first quarter.
In the three months ended March 31, United's total operating revenue increased 9.7% year-over-year to $12.5 billion while its per-share loss narrowed to 15 cents from 63 cents in the year-ago period.
However, it added that its first-quarter results reflected an impact of approximately $200 million from the grounding of the Boeing 737 MAX 9. Without this impact, the company said it would have reported a quarterly profit.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
United's results exceeded analysts’ expectations, which called for revenue of $12.45 billion and a loss of 57 cents per share, according to CNBC.
The results also beat the guidance United provided for the first quarter, which called for a loss of 35 cents to 85 cents per share.
As a result of its strong performance in the first quarter, United reiterated its full-year forecast for EPS to arrive between $9 and $11.
"I want to thank the United team for working so hard this quarter to deliver strong operational metrics for our customers and sharpen our focus on safety, while producing excellent financial results for our shareholders," United Airlines CEO Scott Kirby said in a statement. "We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver. And, we'll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs."
For the second quarter, United expects earnings in the range of $3.75 per share to $4.25 per share, which exceeds the consensus analyst estimate of $3.71 per share.
Analysts see more upside for UAL stock
Analysts are overwhelmingly bullish on the industrial stock. According to S&P Global Market Intelligence, the consensus analyst target price for UAL stock is $62.46, representing an upside of more than 30% from current levels. Additionally, the consensus recommendation is Buy.
Speaking for the bulls is Argus Research analyst John Staszak, who maintained a Buy rating on United Airlines stock after earnings.
"We expect demand for air travel to continue its post-pandemic recovery, with strong growth in international travel, and look for higher revenues to outweigh inflationary headwinds," Staszak says. "We also expect the company to benefit from constrained industry capacity due to the grounding of the Boeing 737 MAX 9."
Related Content
-
A Contrarian Approach Pays Off for This Bond FundThe Dodge & Cox Income Fund has outperformed in 2025 thanks to its managers' fearless approach.
-
How AI Is Changing the Way Americans Spend on Live EventsAI bots are reshaping ticket prices, resale markets and how fans shop. Here's what it means for your wallet and how to get the best deals on concerts, sports and shows.
-
7 Outrageous Ways Retirees Can Invest Their Money in 2026Stocks and bonds aren't the only ways to invest your retirement "fun money."
-
A Contrarian Approach Pays Off for This Bond Fund
The Dodge & Cox Income Fund has outperformed in 2025 thanks to its managers' fearless approach.
-
7 Outrageous Ways Retirees Can Invest Their Money in 2026
Stocks and bonds aren't the only ways to invest your retirement "fun money."
-
7 Creative Ways to Spend Less and Save More In Retirement, Courtesy of a Financial ProWorried you won't have enough money later in life? Try redesigning your vision of retirement, and you may find your savings go further than you thought.
-
I'm an Annuities Pro: This Is How You Can Cover the Income Gap While Your Social Security Benefits GrowTaking Social Security later results in higher future income, but that can create an income gap. Annuities can boost income until you file for benefits.
-
Stocks Extend Losing Streak After Fed Minutes: Stock Market TodayThe Santa Claus Rally is officially at risk after the S&P 500's third straight loss.
-
Where to Stash Cash as Yields Fall, According to AdvisersYour best options depend on how soon you'll need the money and your tolerance for risk.
-
Best Mutual Funds to Invest In for 2026The best mutual funds will capitalize on new trends expected to emerge in the new year, all while offering low costs and solid management.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
