United Airlines: Big 2025 Ahead

Summary:

• United Airlines had a remarkable year, achieving a 138% return, and is poised for further gains with strong earnings and capital returns.
• Despite short-term volatility, the airline is forecasted to achieve a $10+ EPS for 2024, with potential for a $12+ EPS in 2025.
• United Airlines has returned to capital returns with a new $1.5 billion share buyback, equal to 5% of the outstanding shares.
• The stock trades below 8x forward EPS targets.

United Airlines Holdings, Inc. (NASDAQ:UAL) had an incredible year as the market finally recognized the earnings sustainability of leading airlines. The big test this year is whether the airline sector can build on the gains in 2025 for a

Analyst’s Disclosure: I/we have a beneficial long position in the shares of UAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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