United Airlines reported upbeat fourth-quarter earnings, largely thanks to an uptick in winter travel and sustained demand for premium seating.
The carrier reported revenues of $14.7 billion and a profit of $985 million, a 64% increase from the same time last year, for the fourth quarter.
Revenues for premium products were up 10%; corporate revenues up 7%; and basic economy revenues were up 20%. Larger airlines like United have not only focused on their premium offerings in recent years, but also expanded their basic economy seating as they look to compete more with ultra-low-cost carriers.
United also added 30% more seats to popular ski markets and 1,500 more flights to warmer destinations, operating one of its largest domestic schedules during the fourth quarter.
Andrew Nocella, United’s chief commercial officer, said in a call with analysts on Wednesday that the airline was expecting to see a first-quarter boost from travel to southern Europe. He noted that Europe was becoming a year-round destination for the carrier.
“We’re seeing a totally different result where people are willing to go on a Southern European vacation,” he said.
United Is Optimistic on Trump
CEO Scott Kirby said he felt “good” about the Trump administration and the new Department of Transportation leadership.
Earlier, Kirby said on CNBC’s “Squawk on the Street” that he had spoken to President Donald Trump.
“[President Trump] knows a lot about the airspace,” Kirby said. “He is focused even at his level on fixing it.”
Kirby said he also spoke with Sean Duffy, Trump’s nominee for Transportation Secretary, during the weekend. Duffy is largely expected to pass his Senate confirmation.
When asked about DEI policies, Kirby said that United does “hire on merit.”
“We can hire the absolute best of the best and have a naturally diverse workforce,” he said.
Delta Air Lines executives said during its earnings call on January 10 that it wouldn’t walk back its DEI or sustainability commitments under a second Trump administration.
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
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