United's perks and loyalty strategy pays off, as its stock surges after earnings

By Claudia Assis

United Airlines beats expectations for 14th straight quarter, and outlook for 2026 comes in ahead of forecast

A United Airlines jet departing Vancouver's international airport. United reported quarterly earnings late Tuesday.

United Airlines reported better-than-expected profit for the holiday quarter, saying its focus on loyal fliers is paying off and that "strong momentum" continued into the new year.

The airline's (UAL) 2026 guidance provided late Tuesday also came in ahead of expectations at the top end. United Chief Executive Scott Kirby said that the results "are built on winning more and more brand-loyal customers."

It was United's 14th straight quarterly beat, according to FactSet; it recorded its last miss in July 2022, when it reported that year's April-June quarter.

United's stock (UAL) climbed 4.2% in recent premarket trading on Wednesday, which was enough to make it the S&P 500 index's SPX top performer ahead of the open. The stock, which reached a record close of $117.53 on Jan. 6, has rallied 8.5% over the past three months, while the S&P 500 has edged up 0.9%.

United and rival Delta Air Lines have waged an arms race of sorts for travelers willing to pay more for creature comforts and perks such as priority boarding.

Both are offering more nonstop and international destinations, with greater emphasis on on-time departures, lounges and tiered service to lure wealthier travelers.

United called for 2026 adjusted per-share earnings between $12 and $14, ahead of the FactSet consensus for $13.19.

The better-than-expected results came despite the U.S. government shutdown last fall, which slowed U.S. airlines' momentum in a crucial time of the year.

The shutdown was "an opportunity to do the right thing by our customers and further build their trust," United said, highlighting that it offered full refunds to travelers even if their flights weren't canceled. The company said it incurred about $250 million in fourth-quarter charges related to the shutdown, including impact on bookings.

Revenue from its premium fares was up 9% for the fourth quarter and 11% for the full year, while loyalty revenue was up 10% for the fourth quarter and 9% for the full year, United said. Revenue from basic-economy fares grew slower, or 7% for the fourth quarter and 5% for the full year.

"Strong revenue momentum has continued into 2026," the company said, adding that the week to Jan. 4 was the highest in terms of flown revenue in its history, and the week ending on Jan. 11 was the highest ticketing week and the highest week for business sales ever.

United reported adjusted revenue of $3.10 a share, ahead of Wall Street expectations for $2.93 a share, according to FactSet. Revenue rose 5% to $15.4 billion, meeting FactSet consensus. United reported adjusted EPS of $3.26 on revenue of $14.7 billion for the fourth quarter of 2024.

United's optimistic tone corresponded with what some on Wall Street are seeing, including detecting an uptick in business air travel, which helps United and other U.S. major airlines.

Corporate air travel ended 2025 "depressed," analysts at Citi said in a recent note, but there has been a "meaningful" bounce for it at the start of 2026, which is favoring the "supermajors" such as Delta Air Lines (DAL) and United.

Delta reported fourth-quarter earnings last week and offered investors a disappointing outlook.

-Claudia Assis

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