Travel and Vacation Providers Stocks Q2 Recap: Benchmarking United Airlines (NASDAQ:UAL)

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at United Airlines (NASDAQ:UAL) and its peers.

Airlines, hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.

The 18 travel and vacation providers stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.

United Airlines (NASDAQ:UAL)

Founded in 1926, United Airlines Holdings (NASDAQ:UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.

United Airlines reported revenues of $15.24 billion, up 1.7% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates and full-year EPS guidance slightly missing analysts’ expectations.

"Our second-quarter performance was more proof that the United Next strategy is working. I am extremely proud of the team for executing a strong operation and navigating through a volatile macroeconomic period, while still growing earnings and pre-tax margin for the first half of the year," said United CEO Scott Kirby.

Interestingly, the stock is up 17.8% since reporting and currently trades at $104.26.

Read our full report on United Airlines here, it’s free.

Best Q2: Pursuit (NYSE:PRSU)

With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE:PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.

Pursuit reported revenues of $116.7 million, down 69.2% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 24.7% since reporting. It currently trades at $37.46.

Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Hilton Grand Vacations (NYSE:HGV)

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.

Hilton Grand Vacations reported revenues of $1.27 billion, up 2.5% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8% since the results and currently trades at $46.73.

Read our full analysis of Hilton Grand Vacations’s results here.

Norwegian Cruise Line (NYSE:NCLH)

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.

Norwegian Cruise Line reported revenues of $2.52 billion, up 6.1% year on year. This number lagged analysts' expectations by 1.7%. Overall, it was a slower quarter as it also produced EBITDA guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.

The stock is up 5% since reporting and currently trades at $24.60.

Read our full, actionable report on Norwegian Cruise Line here, it’s free.

Hilton (NYSE:HLT)

Founded in 1919, Hilton Worldwide (NYSE:HLT) is a global hospitality company with a portfolio of hotel brands.

Hilton reported revenues of $3.14 billion, up 6.3% year on year. This print beat analysts’ expectations by 1.4%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter missing analysts’ expectations.

The stock is down 1.1% since reporting and currently trades at $271.

Read our full, actionable report on Hilton here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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