United Airlines Poised for Record Earnings After Strong Start to 2026

• Premium revenue grew 9% in Q4 2025 and 11% for the full year, while restrictive basic-economy ticket sales increased 7% in the quarter
• Fourth-quarter profit reached $1.04 billion ($3.19 per share), up 6% from the prior year, despite unit revenue falling 1.6%
• The longest-ever air traffic controller strike in Q4 impacted pretax results by $250 million but did not derail the carrier's strong performance

United Airlines Poised for Record Earnings After Strong Start to 2026

Key Financial Performance:

United Airlines reported fourth-quarter earnings that met Wall Street expectations, with revenue of $15.4 billion and earnings per share of $3.19. Fourth-quarter profit increased 6% year-over-year to $1.04 billion. The company reported full-year 2025 adjusted earnings of $10.20 per share.

Market Position:

United and rival Delta Airlines are dominating the U.S. airline industry, accounting for nearly all industry profits in the first nine months of 2025. Both carriers are forecasting potential record earnings for 2026, driven by strong travel demand across all segments.

Revenue Trends:

While overall unit revenue declined 1.6% in Q4 compared to the prior year, premium revenue surged 9% in the quarter and 11% for full-year 2025. Restrictive basic-economy ticket sales, which compete with discount carriers, grew 7% in the final quarter of 2025. The airline reported robust sales across premium seats, business travel, and no-frills tickets in recent weeks.

Operational Challenges:

Air traffic controller shortages in Q4 caused delays and impacted bookings, reducing pretax results by $250 million. The airline also faced headwinds from the longest-ever Boeing production delays affecting first-class seat availability.

Strategic Focus:

United is capitalizing on strong consumer preference, with CEO Scott Kirby expressing confidence in the airline's growth trajectory. The company is aggressively pursuing high-margin premium revenue, joining the broader industry trend of adding first-class and premium seating to capture higher-priced ticket demand.