UAL Stock Taking Flight After Earnings Confirm Strong Demand

United Airlines (NASDAQ: UAL) stock is up more than 2% after the company delivered its fourth-quarter earnings report for 2025. Despite headwinds from the November government shutdown, United posted record revenue, spurred by strong demand from higher-income and corporate travelers.

Revenue came in at $15.4 billion, topping analyst estimates for $15.35 billion by about 0.35%. However, it was likely the earnings number that caused the rally in UAL stock.

Heading into the earnings report, the whisper number suggested that United might surprise to the upside. In fact, United Airlines hit the number exactly with earnings per share coming in at $3.10. That was a 5.4% improvement over the estimate, though about 4% lower on a year-over-year (YOY) basis.

The K-Shaped Economy Remains Strong

United reported strong growth with its premium cabins, corporate travel, and loyalty programs. However, demand from lower-income consumers, who are more price-sensitive, remains soft.

That’s a real-world example of the K-shaped economy that many companies have been dealing with. Investors heard a similar message from Delta Air Lines (NYSE: DAL) when it reported earnings on Jan. 14.

Both United and Delta, though, seem to be seeing strong performance despite the changing economic landscape. Profits for both airlines are up, and both carriers forecast demand will likely remain strong in 2026.

United reported plans to acquire over 100 narrowbody jets and about 20 Boeing widebody planes in 2026.

That will give it the flexibility to meet higher demand from both high- and low-income consumers in the near future.

Is UAL Stock Expensive?

As of the company’s earnings report, UAL stock trades at a price-to-earnings (P/E) ratio of 11.14x. That's a premium to its historic average. However, investors have two things to consider.

First, the company’s forward P/E ratio is around 8x earnings, which looks more reasonable. Also, some analysts believe United and Delta are worth a higher multiple. These two carriers have shown the ability to navigate the tricky market compared to the competition.

The Outlook for UAL Stock Just Got More Bullish

Prior to earnings, UAL stock was down over 2% in 2026 after hitting a 52-week high in mid-December. However, the post-earnings spike in UAL stock has pushed the stock over $111, and some analysts believe the buy zone may extend to just over $116.

That would put the stock within a fraction of the 52-week high, but recent analyst sentiment says United stock could fly much higher. The consensus price target is $134.94, representing a gain of over 21% from $110.77 as of this writing.

Since the beginning of the year, analyst forecasts show that eight analysts have expressed bullish sentiment for the stock. Many price targets have come in above consensus, with the highest being Citigroup's $153.

That could extend the entry point considerably. Traders may view UAL as a momentum-driven opportunity tied to technical levels, while long-term investors may see the recent pullback as a chance to establish or add to a position ahead of a potentially higher valuation cycle.

For traders, UAL’s move back toward its 52-week high suggests momentum is returning.

A pullback toward the $111–$116 range could offer an attractive risk-reward entry, particularly if the stock holds support and volume remains healthy. 

More aggressive traders may also look for a confirmed breakout above the prior high, using analyst targets as potential profit-taking zones rather than reasons to stay fully invested.

For buy-and-hold investors, the setup looks different. With multiple analysts raising price targets and the consensus implying more than 20% upside, the $111–$116 range may offer an opportunity to gradually accumulate shares, while watching whether United can sustain earnings growth and margin improvement through the remainder of 2026.

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