United Airlines is a major US network carrier with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, New York/Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international and long-haul travel than its large US peers.
Buy
United Airlines serves over 200 domestic and 147 international destinations, carrying ~174 million passengers across 1.3 million flights in 2024. The company reported $57.1 billion in revenue (up 6.2%) and $3.1 billion in net income for 2024, with adjusted diluted EPS of $10.61.
Strong Financials: United posted a record Q4 2024 with $14.7 billion in revenue (up 7.8%) and adjusted EPS of $3.26, beating estimates of $3.00. Full-year adjusted pre-tax earnings were $4.6 billion, with 2025 EPS guidance of $11.50-$13.50, aligning with analyst expectations.
Demand Resilience: Premium revenue grew 10%, corporate revenue 7%, and Basic Economy revenue 20% year-over-year in Q4 2024, reflecting strong consumer preference for United’s offerings. International and loyalty program revenues also rose.
Stock Performance: UAL’s stock surged 180% over the past year, outperforming U.S. peers. A $1.5 billion share repurchase program (~7% of market cap) signals confidence. Analysts’ 12-month price target is $71.36, implying ~17% upside from ~$61.
Operational Excellence: United achieved its best on-time arrival year, added 33 new routes, and expects industry capacity reductions to boost unit revenue in 2025.