United Airlines Earnings Preview: Can the Airline Match Delta's Strong Guidance?

United Airlines Holdings (UAL) is set to report its fourth quarter and full year 2024 financial results on Tuesday, January 21, after market close. Investors are eagerly awaiting the airline's performance, especially after Delta Air Lines (DAL) recently reported record December quarter revenue and operating profit, with industry-leading operational performance. Delta also guided to 2025 earnings of greater than $7.35 per share and free cash flow of greater than $4 billion. United Airlines is expected to follow suit and impress investors with its earnings report.

Bank of America analyst Andrew Didora reiterated a Buy rating on United Airlines and raised the price target from $100 to $120. He expects United Airlines to report strong fourth quarter results and guide first quarter ahead of consensus. Didora believes that United Airlines could be the biggest winner from the strong premium, corporate, and transatlantic growth mentioned in Delta's earnings report. United's premium product offering and coastal hubs that see strong corporate share should see the airline company reporting results in line with Delta or better.



United Airlines' premium product offering and coastal hubs position the company to capitalize on growing demand for premium travel and corporate share, which can lead to stronger earnings. The airline's focus on cost control and revenue growth has resulted in improved operating margins and pre-tax margins. United Airlines' operating margin was 11.0% in the December quarter of 2024, while its pre-tax margin was 7.7%. The company's strong financial performance is reflected in its earnings per share (EPS) of $1.29 in the December quarter of 2024.



Investors should pay close attention to United Airlines' guidance for the first quarter of 2025, as well as its revenue growth and operating margin. The airline's ability to maintain its strong financial performance and capitalize on growing demand for premium travel and corporate share will be crucial in determining its future prospects. United Airlines' earnings report could provide valuable insights into the airline industry's overall performance and the potential for further growth in the coming quarters.

In conclusion, United Airlines is expected to report strong fourth quarter results and guide first quarter ahead of consensus, following Delta Air Lines' recent strong guidance. The airline's premium product offering and coastal hubs position it to capitalize on growing demand for premium travel and corporate share, which can lead to stronger earnings. Investors should closely monitor United Airlines' earnings report and guidance for the first quarter of 2025 to assess the company's prospects and the broader airline industry's performance.