On April 16, 2025, United Airlines (NYSE: UAL) experienced a notable increase in its stock value following the release of its first-quarter earnings report, which exceeded market expectations. This uptick in stock price comes despite ongoing economic challenges posed by trade policies and tariffs. The airline has shown strong forward bookings, particularly in premium cabins, which have risen by 17%.
United Airlines has maintained its full-year profit forecast, contingent on stable demand and fuel prices. This positive outlook stands in contrast to Delta Air Lines (NYSE: DAL), which has retracted its full-year forecast due to stagnant demand growth.
United Airlines Confident on Full Year Profit Forecast Despite Trade Policy Woes
United Airlines reported a strong financial performance in the first quarter of 2025, with earnings surpassing analyst expectations. The airline’s forward bookings for high-margin premium cabins increased by 17%, indicating strong demand in this segment. Additionally, international reservations rose by 5%, contributing to the company’s optimistic outlook for the year.
Despite the economic challenges posed by trade policies and tariffs, United Airlines remains confident in its ability to achieve its full-year profit forecast, provided that demand remains stable and fuel costs do not see significant increases.
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UAL Stock Brief
On April 16, 2025, United Airlines’ stock opened at $69.69 and reached a high of $70.74 during the trading session. The stock is currently trading at $68.33, reflecting a significant increase from the previous day’s close of $67.00.
Despite a challenging year with a 31% decline earlier, United Airlines’ stock is showing signs of recovery. The company’s market capitalization stands at $22.39 billion, with a trailing P/E ratio of 6.22 and a forward P/E ratio of 5.65. Analysts have given a “Buy” recommendation, with a target mean price of $96.34, suggesting potential for further growth.
The stock’s performance is bolstered by strong financial metrics, including a trailing EPS of $10.99 and a forward EPS of $12.09.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.