United Airlines Holdings (NASDAQ: $UAL), the biggest airline in the world, flying 140 million to over 300 destinations in six continents every year, released its Q1 fiscal 2025 results on Tuesday, April 15, 2025, after markets closed. Here is a deep dive into the giant airline’s Q1 results.
United Airlines Q1 Results
United reported Q1 profits, with record revenue of $13.2 billion, 5.4% YoY increase, and total revenue per available seat mile growth of 0.5% YoY. It reported pre-tax earnings of $478 million, and pre-tax margin of 3.6%. Its adjusted pre-tax earnings came in at $391 million, and an adjusted pre-tax margin of 3%.
It reported a diluted EPS of $1.16, and an adjusted EPS of $0.91, beating adjusted EPS forecasts of $0.74. The giant airline also beat revenue forecasts of $13.13 billion.
Other Q1 Highlights
United Airlines reported an adjusted operating margin of 3.8 %, a huge improvement from the 0.9% reported in the same period last year. Its adjusted EBITDA came in at $1.26 billion, below estimates of $1.28 billion. Revenue passenger miles totaled 59.52 billion, up by 2.09 billion compared to last year.
Q1 and Full Year Forecast
Amid ongoing concerns of a recession, United Airlines forecast an EPS of $3.25 to $4.25 for Q2, below the analysts’ forecast of $3.91 at the $3.75 midpoint.
For the full year, it gave two forecasts. If the macroeconomic factors remain stable, it expects an adjusted EPS of $11.50 to $13.50. However, if the economy goes into a recession, the airline expects an adjusted EPS of $7 to $9. Analysts have forecast an EPS of $10.52 for the full year.
Market Performance
Following the earnings and revenue beat in Q1, UAL shares soared 3.25% in the early morning trading session to $69.18 as of 9:33 AM in New York on April 16, 2025.
The stock is down 3.53% in the past six months, 28.44% year to date. However, it is up 67.42% in the past 12 months. Its current price is below the 50- and 200-day moving averages of $83.40, and $73.96, respectively.
Analysts remain optimistic about the future of UAL, giving it a strong buy rating. They forecast an average price of $105.71, which is a 55.23% upside based on the most recent price. The forecasts range from a high of $150, and a low of $59.
Is Now A Good Time To Buy UAL?
United Airlines faces challenges that include pressure from low-cost carriers and supply chain challenges. While there is potential for a near-term slowdown in demand, United Airlines is in a strong position for when it bounces back up. Consequently, adding UAL to your portfolio could potentially be beneficial in the long term.
Click Here For Updates on UAL – It’s FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
