United Airlines exceeds first-quarter outlook estimates after experiencing a surge in profits to end 2024.

• United Airlines anticipates first-quarter earnings ranging from 75 cents to $1.25 per share.
• Analysts will have a conference call with the company on Wednesday at 10:30 a.m. ET.
• Delta Air Lines has been facing increased competition from the carrier for high-spending travelers.

The airline expects to exceed analysts' earnings forecasts in the first quarter due to high travel demand, with the goal of increasing earnings once more in 2025.

According to LSEG estimates, the airline expects to earn an adjusted 75 cents to $1.25 in the first three months of the year, above the 54 cents analysts had expected.

United's stock has increased by more than 180% in the past 12 months, making it the U.S. carrier with the highest percentage increase, as of Tuesday's close. The stock price of United rose more than 3% in extended trading following the release of its results.

Based on LSEG's estimates, Wall Street's expectations for United's fourth quarter performance were not met.

• Earnings per share: $3.26 adjusted vs. $3.00 expected
• Revenue: $14.70 billion vs. $14.47 billion expected

According to LSEG, United expects to grow adjusted earnings to $11.50 to $13.50 in full-year 2025, which is in line with expectations of about $12.82.

Delta and its rivals have profited from increased demand for premium seats, international travel, and extensive loyalty programs. Delta CEO Ed Bastian predicts that 2025 will be the airline's most profitable year in history.

In the fourth quarter, United reported a $985 million profit, up 64% from the previous year, on $14.70 billion in revenue, which was an 8% increase from the previous year. After adjusting for one-time items, United reported earnings of $3.26 per share, exceeding expectations.

In 2023, all types of revenue, including loyalty-program revenue, international, domestic, and basic economy-class revenue, increased from the previous year. Additionally, unit revenue, which reflects pricing power, turned positive during the same quarter of 2023.