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United Airlines (UAL) has announced a return to profitability for the first quarter, with record revenue figures propelling its stock upward in after-hours trading.
The airline, headquartered in Chicago, achieved first-quarter revenue of $13.2 billion, marking a 5% increase from the previous year and surpassing analyst expectations set by Visible Alpha. The adjusted net income stood at $302 million, or 91 cents per share, in stark contrast to a loss of $50 million, or 15 cents per share, from the same period last year. This performance exceeded Wall Street’s forecasts as well.
Following the announcement, United’s shares surged nearly 7% in after-hours trading, despite the stock experiencing a decline of nearly 30% in value since the beginning of 2025 up to Tuesday’s market close.
United Projects Steady Earnings in Q2
These results emerge in a challenging environment for the airline industry. Recently, Visual Approach Analytics cautioned that the air travel sector might face significant demand reduction due to the ongoing tariff policies implemented during the Trump administration. Additionally, Delta Airlines (DAL) has opted to retract its full-year projections, citing various uncertainties in the current market.
In a forward-looking statement, United Airlines expressed confidence in achieving “resilient earnings” for the second quarter and throughout the fiscal year ahead, despite the prevailing economic headwinds. The airline is also strategizing to adjust its flight schedules by scaling back operations during times of low demand.
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www.investopedia.com