United Airlines (UAL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 results, with adjusted EPS of $10.61 and strong pre-tax margins, exceeding initial guidance.

• Served a record 174 million customers, with best-ever operational reliability and on-time departures at all seven hubs.

• Continued progress on the United Next plan, focusing growth in core hubs and investing in technology, product, and customer experience.

• Paid $713 million in profit-sharing to employees, reflecting strong performance.

• Premium, corporate, and Basic Economy revenues grew 10%, 7%, and 20% year-over-year; loyalty and cargo revenues up 12% and 30%.

Financial highlights

• Q4 total operating revenue was $14.7B, up 7.8% year-over-year; full-year revenue $57.1B, up 6.2%.

• Q4 adjusted EPS $3.26 and pre-tax margin of 9.7%, up 3.5 points year-over-year.

• Full-year free cash flow of $3.4 billion; paid down $7.4 billion in debt, including $3.6 billion voluntary prepayment.

• Ended 2024 with $17.4 billion in liquidity and net leverage of 2.4x, targeting below 2x in 2025.

• Repurchased $81 million in shares in Q4, with $1.4 billion remaining in buyback authorization.

Outlook and guidance

• 2025 EPS guidance of $11.50–$13.50, representing 18% growth at the midpoint.

• Q1 2025 EPS expected at $0.75–$1.25, a $400 million improvement year-over-year.

• Targeting free cash flow around $3.4 billion in 2025.

• Expects robust demand in Q1 2025, with domestic RASM turning positive and continued international RASM improvement.

• CapEx for 2025 expected below $7 billion due to OEM delivery delays.