United Airlines reported fourth-quarter results Tuesday that set new records for quarterly revenue and demonstrated that the post-pandemic travel boom shows no signs of slowing, with management projecting 2026 could deliver the highest earnings in the company's history.

Record-Breaking Q4

The airline posted Q4 revenue of $15.4 billion, the highest quarterly revenue in United's history. Adjusted diluted earnings per share came in at $3.10, comfortably surpassing the Wall Street consensus of $2.94 and landing within the company's initial guidance range of $3.00 to $3.50.

The results capped a remarkable 2025 for the carrier. Full-year total operating revenue grew 3.5% year-over-year to $59.1 billion—also a company record. Pre-tax earnings reached $4.3 billion with a 7.3% pre-tax margin, while adjusted pre-tax earnings hit $4.6 billion.

United flew a record 181 million passengers in 2025 while achieving the second-best on-time departure performance among major U.S. carriers and recording the lowest seat cancellation rate in company history.

Premium Strategy Pays Off

Central to United's outperformance has been its aggressive push into premium products, a strategy that has allowed the airline to capture higher-margin travelers while reducing its dependence on price-sensitive leisure customers.

Premium revenue grew 9% in the fourth quarter and 11% for the full year, far outpacing overall revenue growth. Loyalty revenue—driven by co-branded credit cards and frequent flyer programs—rose 10% in Q4 and 9% for the year.

Even the Basic Economy segment, United's most price-competitive offering, showed strength, with revenue up 7% in Q4 and 5% for the full year. The across-the-board growth suggests broad-based demand rather than simply trade-up from economy to premium.

2026 Outlook: Potential Record Year

Management provided 2026 guidance calling for adjusted earnings per share of $12 to $14, which at the midpoint represents a roughly 20% increase from 2025. The projection aligns with the $13.16 that analysts had been expecting.

For the first quarter of 2026, United guided to EPS of $1.00 to $1.50, implying approximately 37% earnings improvement at the midpoint compared to Q1 2025. The strong start would set the stage for what could be the most profitable year in United's history.

CEO Scott Kirby expressed confidence that demand fundamentals remain robust despite macroeconomic uncertainties. "Travel continues to be a priority for consumers, and the investments we've made in our product and operations are resonating with customers," Kirby said during the earnings call.

Navigating Challenges

The strong results came despite significant headwinds. United absorbed an estimated $250 million pre-tax hit from the U.S. government shutdown, which disrupted air traffic control operations and created scheduling challenges. Newark Liberty International Airport, one of United's largest hubs, also presented ongoing operational difficulties that cost the company an estimated $0.85 per share in 2025.

Management noted that many of the Newark challenges are being addressed through infrastructure investments and schedule adjustments, suggesting the headwind could diminish in 2026.

The Starlink Factor

One element generating particular excitement among investors is United's partnership with SpaceX's Starlink to provide high-speed Wi-Fi across its fleet. The rollout, which accelerated in late 2025, has been a differentiating feature that management believes contributes to premium ticket sales and customer loyalty.

United has positioned the connectivity upgrade as part of a broader strategy to make every aspect of the flying experience feel more premium, from check-in through baggage claim. The investments appear to be paying off in both customer satisfaction scores and willingness to pay higher fares.

What It Means for Investors

United shares have been among the best performers in the airline sector, with the stock more than doubling from its 2022 lows. The strong guidance suggests management sees no immediate end to the favorable supply-demand dynamics that have allowed airlines to maintain pricing power.

For the broader economy, United's results provide a real-time read on consumer health. The continued strength in travel spending, particularly for premium products, suggests that at least a segment of American consumers remains willing and able to spend on experiences despite higher prices and economic uncertainty elsewhere.

Shares rose 3% in Wednesday's session, adding to gains from after-hours trading following the earnings release.