United Airlines Holdings: Strong Quarter; UBS Raises Target Price to $140

United Airlines Holdings, Inc. (UAL) reported a strong fourth quarter and full-year 2024, driven by robust demand for air travel, premium cabin and Basic Economy revenue growth, and international expansion. The airline's diversified revenue strategy and cost convergence across the industry position it for future growth and profitability. UBS raised its target price for United Airlines Holdings to $140, reflecting the company's strong performance and growth prospects.

United Airlines reported full-year pre-tax earnings of $4.2 billion, with a pre-tax margin of 7.3%, and adjusted pre-tax earnings of $4.6 billion, with an adjusted pre-tax margin of 8.1%. The company achieved full-year diluted earnings per share of $9.45 and adjusted diluted earnings per share of $10.61, within the 2024 guidance range of $9.00 to $11.00. United Airlines' strong financial performance was supported by a 10% increase in premium cabin revenue and a 20% increase in Basic Economy revenue year-over-year in the fourth quarter.

United Airlines' diversified revenue strategy and cost convergence across the industry have positioned the company for future growth and profitability. The airline's investment in technology, such as Starlink's Wi-Fi service and the Kinective Media network, enhances the customer experience and drives revenue growth. United Airlines' strategic focus on premium products, international expansion, and a diversified revenue strategy positions it well to capitalize on growing demand for air travel and achieve double-digit pre-tax margins in the future.

United Airlines' strong fourth-quarter performance and growth prospects have led UBS to raise its target price for the company to $140. The analyst firm believes that United Airlines' robust demand trends, solid domestic RASM, and continued improvement in international RASM put the company on track to achieve double-digit pre-tax margins. United Airlines' diversified revenue strategy, cost convergence, and investments in technology position it for long-term success in the competitive airline industry.



In conclusion, United Airlines Holdings, Inc. reported a strong fourth quarter and full-year 2024, driven by robust demand for air travel, premium cabin and Basic Economy revenue growth, and international expansion. The airline's diversified revenue strategy and cost convergence across the industry position it for future growth and profitability. United Airlines' investments in technology, such as Starlink's Wi-Fi service and the Kinective Media network, enhance the customer experience and drive revenue growth. UBS raised its target price for United Airlines Holdings to $140, reflecting the company's strong performance and growth prospects. United Airlines is well-positioned to capitalize on growing demand for air travel and achieve double-digit pre-tax margins in the future.