United Airlines Stock Takes Off On Q1 Earnings: Resilient Q2 Forecast, FY Guidance For 'Stable' And 'Recessionary' Environments — 'Impossible To Predict'

United Airlines Holdings Inc UAL reported first-quarter financial results after the market close on Tuesday. Here’s a look at the key metrics from the airline company’s report.

Q1 Earnings: United Airlines reported first-quarter revenue of $13.21 billion, missing analyst estimates of $13.25 billion. The company reported adjusted first-quarter earnings of 91 cents per share, beating estimates of 76 cents per share, according to Benzinga Pro.

Here’s a breakdown of year-over-year revenue growth by category:

• Premium Cabin revenue: up 9.2%

• Business revenue: up 7.4%

• Basic Economy revenue: up 7.6%

• Cargo revenue: up 9.7%

• Loyalty revenue: up 9.4%

Capacity was up 4.9% on a year-over-year basis. TRASM (total revenue per available seat mile) was up 0.5% while CASM (cost per available seat mile) declined 3.4%. Average fuel price per gallon was $2.53 during the quarter.

United said it generated $3.7 billion of operating cash flow and $2.3 billion of free cash flow in the period. The company ended the quarter with $18.3 billion in total liquidity and $27.7 billion in total debt, finance lease obligations and other financial liabilities.

“Our strategy coming out of the COVID pandemic was simple: Build the best airline in the world to attract brand-loyal customers. The people of United Airlines have executed and built that airline,” said Scott Kirby, CEO of United Airlines.

“United Next is on track and we will continue to execute our multiyear plan that has allowed United to thrive in any demand environment. It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times.”

Related Link: United Airlines Stock Hits Resistance Before Q1 Earnings: Can Analyst Optimism Fuel A Rebound?

Guidance: United estimated second-quarter adjusted earnings in the range of $3.25 to $4.25 per share.

The airline company sees its ability to win brand-loyal customers as a competitive advantage that will allow it to remain "resilient" in any economic environment.

The company noted that it expects resilient earnings in both the second quarter and full-year 2025.

In response to the current demand environment, United plans to remove four percentage points of scheduled domestic capacity beginning in the third quarter. The company will also make “prudent” adjustments to its fleet rate utilization and retire aircraft earlier than planned, as previously announced.

United also provided two sets of guidance for full-year 2025. The company anticipates full-year 2025 adjusted earnings of $11.50 to $13.50 per share in a “stable environment.” United expects full-year earnings of $7 to $9 per share in a “recessionary environment.”

“The Company's outlook is dependent on the macro environment, which the Company believes is impossible to predict this year with any degree of confidence,” United said in an investor update.

United Airlines executives will further discuss the quarter on a call with investors and analysts Wednesday morning at 10:30 a.m. ET.

UAL Price Action: United Airlines shares were down about 31% year-to-date heading into the report. The airline stock was up 6.80% after hours, trading at $71.65 at the time of publication Tuesday, according to Benzinga Pro.

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