United Airlines reported a 12% year-over-year increase in fourth-quarter net income, exceeding analyst forecasts, as its targeted loyalty strategy and premium customer engagement drove revenue growth. The company's stock rose by 7.3% the following day.
- UAL reported $498 million in net income for Q4 2025, up 12% year-over-year
- Adjusted EPS of $2.15 exceeded analyst consensus of $1.90
- MileagePlus active members grew 22% YoY, with elite customers driving 38% of domestic revenue
- Load factor increased by 12% on long-haul routes due to higher loyalty program engagement
- UAL stock surged 7.3% in after-hours trading following earnings release
- JPMorgan and Wells Fargo upgraded UAL stock based on improved customer retention metrics
United Airlines posted a quarterly net income of $498 million for the December quarter, surpassing expectations with an adjusted EPS of $2.15 compared to the consensus estimate of $1.90. This performance marked the third consecutive quarter of profit growth, fueled by a 15% rise in revenue from passenger loyalty programs and frequent-flyer benefits utilization. The airline attributed much of its success to enhanced reward structures and personalized service offerings that boosted customer retention. United’s MileagePlus program saw a 22% increase in active members during the quarter, with elite-tier customers accounting for 38% of total domestic revenue—a significant uptick from 31% in the same period last year. These high-value travelers also demonstrated higher spending per trip, contributing to a 12% improvement in load factor on long-haul routes. Market participants reacted favorably, sending United’s stock (ticker: UAL) up 7.3% in after-hours trading. The rally was supported by analysts who noted improved unit economics and elevated customer lifetime value. Investment firms including JPMorgan and Wells Fargo upgraded their ratings on UAL, citing stronger pricing power and reduced reliance on discount sales. The results underscore a strategic pivot toward premium service tiers and data-driven customer engagement across the U.S. airline sector. United’s success may prompt similar recalibrations at major carriers like Delta Air Lines and American Airlines, which are also reevaluating their loyalty incentives amid rising fuel costs and competitive pressures.