United Airlines Holdings Inc, trading under the ticker UAL, disclosed its financial performance for the fourth quarter after market hours on Tuesday. The report revealed key metrics underscoring a robust quarter that culminated in record revenue achievements for the company.
United's quarterly revenue reached $15.397 billion, narrowly surpassing analyst consensus estimates of $15.396 billion. Earnings per share on an adjusted basis stood at $3.10, also beating the anticipated estimate of $2.94. These figures underscore United's capacity to generate superior financial outcomes even as the airline sector faces industry headwinds.
Breaking down revenue streams, premium cabin sales rose 9% year-over-year, signaling strong demand among higher-paying clientele. Basic economy fares similarly increased by 7%, reflecting solid growth in more price-sensitive market segments. Loyalty program revenue expanded by an impressive 10% year-over-year, indicating successful retention and engagement of repeat customers. Conversely, cargo revenue decreased by 6%, marking a decline in freight-related earnings during the quarter.
The fourth quarter represented the highest revenue quarter in United's history, complemented by the highest quarterly revenue per available seat mile (RASM) recorded in 2025. These outcomes are notable given the competitive pressures and cost considerations prevalent in the aviation industry.
Scott Kirby, CEO of United Airlines, highlighted the company's focus on customer loyalty and value delivery, stating that the surge in brand-loyal travelers underscores why customers derive significant benefit from flying with United. He emphasized that the record revenue and RASM figures both provide strong momentum that the airline expects to carry into 2026.
Capacity in the quarter increased by 6.5% compared to the same period last year. Despite this growth, total revenue per available seat mile (TRASM) experienced a slight year-over-year decline of 1.6%. Cost efficiency gains were also modest, with cost per available seat mile (CASM) falling by only 0.3% over the same period.
United's financial health remains robust, as evidenced by an operating cash flow of $8.4 billion in 2025 and free cash flow generation of $2.7 billion for the full year. By year-end, the airline held $15.2 billion in total liquidity, offset by $25 billion in combined debt and finance lease obligations, reflecting its strategic capital structure management.
Looking forward, the airline issued guidance for first-quarter adjusted earnings between $1 and $1.50 per share. Full-year 2026 adjusted earnings are projected to fall within the $12 to $14 per share range. Planned capital expenditures for the year are set to remain below $8 billion.
The company also announced intentions to enhance the passenger experience in 2026, with substantial fleet additions planned. Specifically, United expects to receive over 100 narrowbody aircraft and roughly 20 Boeing 787 widebody airplanes, which will support network expansion and service improvements.
A conference call scheduled for Wednesday at 10:30 a.m. ET will provide additional detail on United's forward-looking guidance and strategic priorities.
Following the earnings announcement, United's shares experienced a notable increase in after-hours trading, climbing 4.28% to $113.32. This positive market response reflects investor enthusiasm around the airline's record quarterly results and optimistic 2026 outlook.