By Rajesh Kumar Singh
CHICAGO, Jan 20 (Reuters) - United Airlines on Tuesday issued an upbeat outlook for the current quarter and the full year, buoyed by strong demand from higher-income and corporate travelers.
The Chicago‑based carrier also exceeded profit expectations for the December quarter. Its shares were up about 4.3% in after-hours trading.
United's earnings report underscores how U.S. airlines are increasingly relying on premium cabins, corporate travel and loyalty programs to drive profit
growth, even as competition and softer demand from price-sensitive travelers pressure economy-class fares.
The shift has helped carriers stabilize revenue, offset higher costs and justify continued investment in aircraft and cabin upgrades aimed at higher-yield passengers.
"Our results are built on winning more and more brand-loyal customers," United CEO Scott Kirby said in a statement.
United said premium revenue rose 9% in the December quarter from a year earlier, while loyalty revenue increased 10%.
Rival Delta Air Lines said last week that premium-cabin revenue surpassed main-cabin revenue for the first time in the fourth quarter, as growth in higher-end seating more than offset declines in the economy cabin. The Atlanta-based carrier has said nearly all of its near-term seat growth will come from premium cabins.
By contrast, low-cost and ultra-low-cost carriers, which rely heavily on price-sensitive travelers, have struggled with weak profitability and excess capacity, prompting consolidation and retrenchment. Allegiant has announced plans to acquire Sun Country Airlines, while Spirit Airlines has entered a second bankruptcy.
RECORD REVENUE AT UNITED
United said that despite taking a roughly $250 million hit to pre-tax earnings in the December quarter, it still posted its highest-revenue quarter on record and earned more revenue per seat than in any other quarter of the year.
That momentum has carried into 2026, the airline said, with the week ending January 4 delivering the highest passenger revenue from flown tickets in its history, followed by a record week for ticket sales and business-travel bookings.
United forecast first-quarter adjusted profit of $1 to $1.50 per share. The midpoint of the range, $1.25, is above analysts' average estimate of $1.13, according to LSEG data.
For 2026, United projected adjusted earnings of $12 to $14 per share, compared with analysts' average estimate of $13.16 a share.
Its adjusted earnings for the fourth quarter came in at $3.10 per share, topping analysts' estimate of $2.94. Total revenue rose 4.8% to $15.4 billion.
The company will discuss its financial results on a call with analysts and investors on Wednesday morning.
(Reporting by Rajesh Kumar Singh; Editing by Rod Nickel and Jamie Freed)
