United Airlines (UAL) has joined Delta Airlines in posting record profits driven by strong demand across all product categories, led by Basic Economy products.
Demand for UAL’s core passenger services was robust across all product categories. Basic Economy services led the way, with revenue up 20 percent year over year, followed by corporate services. Other services also performed well, including cargo services, which saw a 30 percent increase in revenue.
“United had a unique strategy coming out of COVID-19, and our people have delivered for customers, leading to a structurally and permanently changed industry,” United Airlines CEO Scott Kirby said in a statement following the release of the financial results for the entire year and fourth quarter.
He said that 2024 was a strong year across the board for United. “We’ve become the leading global airline, and we enter 2025 with demand trends continuing to accelerate, which puts us on the path to double-digit pretax margins,” the statement reads.
UAL’s record earnings come a week after Delta reported the highest earnings in its history and upped its guidance for 2025, highlighting the continuing recovery of traveling from the COVID-19 recession.
Meanwhile, U.S. airlines have taken several steps to capitalize on this trend, such as implementing a product-differentiation strategy with several seat-comfort choices. This strategy allows airlines to charge higher prices for premium seating, which adds value to their top and bottom lines.
Then there is the expansion of flights, which adds revenues. Last year, for instance, UAL operated the most flights and carried the most customers in its history. In addition, the company broke the record for most customers carried in a year, at nearly 174 million system-wide. It had an average of 4,340 daily flights, conducting 145 more mainline flights daily than in 2023.
Improved logistics helped streamline basic operations such as passenger check-in. Enhancements, including in-app Spanish translations and a new Basic Economy digital check-in experience, helped the company achieve the highest quarterly rate for digital check-ins in two years for the fourth quarter.
At the same time, logistics allowed airliners to improve flying time performance. According to UAL’s report, the company finished first in on-time performance at all seven of its U.S. hubs, thanks to significant investments in human, airport, and technology resources.
“UAL’s expansion in the number of flights means that more U.S. travelers will go abroad, including to new destinations that have never been introduced before,” Aleksandr Andreichuk, a travel expert, told The Epoch Times via email.
“By the end of 2024, UAL has offered 800 daily flights to and from 147 international destinations, including 40 nonstop routes,” he said. “This indicates that UAL will continue to be a market leader in the U.S. airline sector.”
Julian Kheel, founder and CEO at Points Path, said he sees several similarities between UAL’s strategy and Delta’s, such as the positioning to take advantage of continuing customer demand for international travel and premium experiences while benefiting from lower fuel prices.
“Its extensive route network and strong partnerships with overseas carriers make the airline a popular choice for travelers looking to fly to Europe, Asia, and South America,” he told The Epoch Times via email.
“While it still lags behind several foreign airlines when it comes to premium cabins, its Polaris business class product is one of the better options for travelers across U.S. carriers.”
In addition, Kheel commended UAL’s exclusive partnership with Chase for co-branded consumer and business credit cards.
“It means that consumers use its cards for millions of transactions, and it remains the leading U.S. airline transfer partner for Chase’s Ultimate Rewards program,” he said.
Investment houses see more opportunities ahead for UAL.
Argus Fundamental also stated that it is optimistic about UAL’s prospects based on the continuing growth of the demand for air travel.
