United Airlines’ Profit Lifted by Strong Demand for Air Travel

United said it earned a profit of $843 million in the fourth quarter—up more than 30% from the same period in 2019, before the Covid-19 pandemic upended the industry. For the year, United reported a profit of $737 million.

The airline’s fourth-quarter operating revenue of $12.4 billion rose 14% from the same period in 2019, even though the carrier flew 9% less. 

Airline executives have said there isn’t evidence of a slowdown. United said it expects its revenue in the first quarter to be 50% higher than the same period last year. United projected first-quarter profit of 50 cents to $1 per share—above what analysts have been anticipating. 

In presentation materials released ahead of United’s earnings conference call, scheduled for Wednesday, the Chicago-based airline said multiple factors are likely to continue to restrict the industry’s ability to add capacity this year, including a pilot shortage and problems with technology infrastructure both at airlines and air-traffic control. Systems used by the Federal Aviation Administration came under scrutiny last week after the failure of a critical pilot alert system prompted a nationwide ground stop. 

Rival airlines including

Delta Air Lines Inc.

and

American Airlines Group Inc.

have also said resilient demand has led to stronger-than-expected revenue gains in the final months of the year. Delta Chief Executive

Ed Bastian

said last week that he has never seen a better backdrop for the industry.

United said Tuesday that it was able to recover quickly from a severe winter storm at the end of December, which hobbled rival

Southwest Airlines Co.

for over a week. 

On an adjusted basis, United earned $2.46 per share, outpacing the $2 to $2.25 range United had predicted and well ahead of the $2.11 analysts were anticipating. 

Write to Alison Sider at [email protected]

United said it earned a profit of $843 million in the fourth quarter—up more than 30% from the same period in 2019, before the Covid-19 pandemic upended the industry. For the year, United reported a profit of $737 million.

The airline’s fourth-quarter operating revenue of $12.4 billion rose 14% from the same period in 2019, even though the carrier flew 9% less. 

Airline executives have said there isn’t evidence of a slowdown. United said it expects its revenue in the first quarter to be 50% higher than the same period last year. United projected first-quarter profit of 50 cents to $1 per share—above what analysts have been anticipating. 

In presentation materials released ahead of United’s earnings conference call, scheduled for Wednesday, the Chicago-based airline said multiple factors are likely to continue to restrict the industry’s ability to add capacity this year, including a pilot shortage and problems with technology infrastructure both at airlines and air-traffic control. Systems used by the Federal Aviation Administration came under scrutiny last week after the failure of a critical pilot alert system prompted a nationwide ground stop. 

Rival airlines including

Delta Air Lines Inc.

and

American Airlines Group Inc.

have also said resilient demand has led to stronger-than-expected revenue gains in the final months of the year. Delta Chief Executive

Ed Bastian

said last week that he has never seen a better backdrop for the industry.

United said Tuesday that it was able to recover quickly from a severe winter storm at the end of December, which hobbled rival

Southwest Airlines Co.

for over a week. 

On an adjusted basis, United earned $2.46 per share, outpacing the $2 to $2.25 range United had predicted and well ahead of the $2.11 analysts were anticipating. 

Write to Alison Sider at [email protected]