United Airlines (UAL) demonstrated robust performance by surpassing Wall Street forecasts, resulting in a notable increase in its stock price on Wednesday. The airline revealed a positive earnings report, projecting significant profit growth for 2026.
In its latest report, United Airlines achieved a fourth-quarter earnings per share (EPS) of $3.10, with a full-year EPS of $10.62 for 2025, reflecting a slight increase compared to 2024. This performance came despite facing a $250 million pre-tax impact from the U.S. government shutdown and a $0.85 headwind related to Newark operations. United”s Chief Executive Officer, Scott Kirby, emphasized that 2025 served as a “proof point” for the airline”s strategy aimed at establishing a “revenue-diverse, brand-loyal airline.” He described this model as “remarkably resilient in tough times.”
Looking ahead, United Airlines anticipates adjusted earnings for the first quarter of 2026 to range between $1.00 and $1.50 per share, while projecting full-year adjusted EPS to fall between $12.00 and $14.00. Additionally, the airline expects its capital expenditures for 2026 to remain below $8 billion.
On the operational side, United reported generating $2.7 billion in free cash flow for 2025 and expects to maintain a similar level in 2026, largely due to increased aircraft deliveries. The airline also successfully reduced its high-cost COVID-era debt by $1.9 billion within the year, lowering its total cost of debt to 4.7% and concluding the year with a net leverage ratio of 2.2x.
Over the past 13 months, United Airlines has received five credit rating upgrades from major agencies, including Moody”s, S&P, and Fitch, positioning itself just one notch below investment-grade ratings at all three organizations. Investors are closely monitoring trends in premium versus basic economy travel, as well as early booking patterns in the initial quarter of the year, which typically set the tone for U.S. airlines.
