United Airlines (UAL) earnings Q4 2022

unified airline‘ fourth-quarter earnings and an early 2023 outlook topped Wall Street estimates thanks to strong demand and high ticket prices.

Consumers’ appetite for air travel and willingness to pay higher fares have kept airlines profitable despite the higher fuel, labor and other costs involved. to expand their network. Meanwhile, delays in aircraft deliveries and training backlogs have limited the growth of airlines, keeping fares at a premium.

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United reported a profit of $843 million for the last three months of 2022 on revenue of $12.4 billion. That revenue was nearly 14% higher than in the same period in 2019, before the pandemic, despite flights being 9% less.

Here’s how the carrier performed in the fourth quarter compared to what Wall Street expected, based on average estimates compiled by Refinitiv:

• Adjusted earnings per share: $2.46 vs expected $2.10
• Total revenue: $12.4 billion vs. $12.2 billion expected

For the first three months of 2023, United is expected to generate 50% more revenue than the same period in 2022. The company expects first-quarter earnings per share to fall within between 50 cents and $1, 25 cents above analyst consensus, according to Refinitiv.

Shares of United were up 5% in extended trading on Tuesday.

The quarterly update is another sign of a favorable year-end for airlines, despite severe winter storms and disruptions during popular holiday travel.

Last week, Delta Airlines‘ profits and revenue beat Wall Street expectations although higher costs, partly due to an expected pilot labor deal, hit its first-quarter profit forecast. Also last week, American Airlinesreported January 26, raised its profit and revenue forecasts for the fourth quarter.

United executives will hold a call with analysts and the media at 10:30 a.m. ET Wednesday.

This story is evolving. Please check back for updates.