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United Airlines Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y
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United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2024 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Quarterly earnings per share (EPS) (excluding 31 cents from non-recurring items) of $3.26 surpassed the Zacks Consensus Estimate of $3.01. The bottom line increased 63% on a year-over-year basis. The reported figure exceeded the company guided range of $2.50-$3.00.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Operating revenues of $14.7 billion beat the Zacks Consensus Estimate of $14.4 billion. The top line increased 7.8% year over year due to upbeat air-travel demand. This was driven by a 6.9% rise in passenger revenues (which accounted for 90.3% of the top line) to $13.3 billion. Almost 44,344 passengers traveled on UAL flights in the fourth quarter, up 6.1% year over year.
Cargo revenues grew 29.6% year over year to $521 million. Revenues from other sources rose 12% from the fourth quarter of 2023 to $899 million.
United Airlines Holdings Inc Price, Consensus and EPS Surprise
United Airlines' chief executive officer, Scott Kirby, stated, "United had a unique strategy coming out of COVID and our people have delivered for customers leading to a structurally and permanently changed industry. 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."
Other Details of UAL’s Q4 Earnings
Below, we present all comparisons (in % terms) with the fourth quarter of 2023 figures unless otherwise stated.
Airline traffic, measured in revenue passenger miles, grew 6.3%. Capacity, measured in available seat miles, expanded 6.2%. Although traffic outpaced capacity expansion, the consolidated load factor (percentage of seat occupancy) of 82.3% remained flat on a year-over-year basis, reflecting consistent passenger demand for the airline's services. Our estimate is pegged at 80.5%.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) inched up 0.6%. Total revenue per available seat mile increased 1.6% to 18.77 cents. The average yield per revenue passenger mile rose 0.6% to 20.59 cents.
Average aircraft fuel price per gallon fell 23.3% to $2.40. Our estimate is pegged at $2.81.
Fuel gallons consumed were up 5.3%.
Operating expenses (on a reported basis) increased 4.5% to $13.2 billion. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, decreased 1.6% to 16.85 cents.
UAL exited the fourth quarter with cash and cash equivalents of $8.76 billion compared with $8.81 billion at the prior-quarter end. Long-term debt,finance leases, and other financial liabilities were $25.2 billion at the fourth-quarter end.
UAL’s Outlook
For the first quarter of 2025, UAL expects adjusted EPS in the range of $0.75-$1.25. The Zacks Consensus Estimate is pegged at 65 cents.
For 2025, UAL expects adjusted EPS between $11.50 and $13.50. The Zacks Consensus Estimate of $12.56 lies within the guidance.
For 2025, UAL expects adjusted capital expenditures to be less than $7 billion.
UAL’s encouraging price performance is not limited to the post-fourth-quarter earnings release. Over the past six months, shares of United Airlines have gained 129.2%, outperforming its industry and the S&P 500, of which the company is a key member.
Six-Month Price Comparison
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.
DAL’s revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.
J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. The bottom line increased 4.1% on a year-over-year basis.
JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.
JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.
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United Airlines Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y
United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2024 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Quarterly earnings per share (EPS) (excluding 31 cents from non-recurring items) of $3.26 surpassed the Zacks Consensus Estimate of $3.01. The bottom line increased 63% on a year-over-year basis. The reported figure exceeded the company guided range of $2.50-$3.00.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Operating revenues of $14.7 billion beat the Zacks Consensus Estimate of $14.4 billion. The top line increased 7.8% year over year due to upbeat air-travel demand. This was driven by a 6.9% rise in passenger revenues (which accounted for 90.3% of the top line) to $13.3 billion. Almost 44,344 passengers traveled on UAL flights in the fourth quarter, up 6.1% year over year.
Cargo revenues grew 29.6% year over year to $521 million. Revenues from other sources rose 12% from the fourth quarter of 2023 to $899 million.
United Airlines Holdings Inc Price, Consensus and EPS Surprise
United Airlines Holdings Inc price-consensus-eps-surprise-chart | United Airlines Holdings Inc Quote
United Airlines' chief executive officer, Scott Kirby, stated, "United had a unique strategy coming out of COVID and our people have delivered for customers leading to a structurally and permanently changed industry. 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."
Other Details of UAL’s Q4 Earnings
Below, we present all comparisons (in % terms) with the fourth quarter of 2023 figures unless otherwise stated.
Airline traffic, measured in revenue passenger miles, grew 6.3%. Capacity, measured in available seat miles, expanded 6.2%. Although traffic outpaced capacity expansion, the consolidated load factor (percentage of seat occupancy) of 82.3% remained flat on a year-over-year basis, reflecting consistent passenger demand for the airline's services. Our estimate is pegged at 80.5%.
Consolidated passenger revenue per available seat mile (a key measure of unit revenues) inched up 0.6%. Total revenue per available seat mile increased 1.6% to 18.77 cents. The average yield per revenue passenger mile rose 0.6% to 20.59 cents.
Average aircraft fuel price per gallon fell 23.3% to $2.40. Our estimate is pegged at $2.81.
Fuel gallons consumed were up 5.3%.
Operating expenses (on a reported basis) increased 4.5% to $13.2 billion. Consolidated unit cost or cost per available seat mile (CASM), excluding fuel, third-party business expenses, profit-sharing and special charges, decreased 1.6% to 16.85 cents.
UAL exited the fourth quarter with cash and cash equivalents of $8.76 billion compared with $8.81 billion at the prior-quarter end. Long-term debt,finance leases, and other financial liabilities were $25.2 billion at the fourth-quarter end.
UAL’s Outlook
For the first quarter of 2025, UAL expects adjusted EPS in the range of $0.75-$1.25. The Zacks Consensus Estimate is pegged at 65 cents.
For 2025, UAL expects adjusted EPS between $11.50 and $13.50. The Zacks Consensus Estimate of $12.56 lies within the guidance.
For 2025, UAL expects adjusted capital expenditures to be less than $7 billion.
UAL’s Zacks Rank and Price Performance
Currently, UAL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
UAL’s encouraging price performance is not limited to the post-fourth-quarter earnings release. Over the past six months, shares of United Airlines have gained 129.2%, outperforming its industry and the S&P 500, of which the company is a key member.
Six-Month Price Comparison
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.
DAL’s revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.
J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. The bottom line increased 4.1% on a year-over-year basis.
JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.
JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.