Investing.com -- Shares of major airlines traded higher after-hours on Tuesday, following a positive earnings report from United Airlines that surpassed Wall Street expectations. American Airlines (NASDAQ:AAL) saw a 1.5% increase, Delta Air Lines (NYSE:DAL) increased by 1.7%, Southwest Airlines (NYSE:LUV) gained 1.1%, and JetBlue shares rose by 0.8%.
United Airlines delivered a robust financial performance for the fourth quarter, posting earnings per share (EPS) of $3.26, which was $0.33 higher than the analyst consensus of $2.93. The company's revenue for the quarter also exceeded expectations, coming in at $14.7 billion compared to the predicted $14.34 billion. United Airlines shares rose 3.8% after-hours.
This strong report from United Airlines has cast a positive light on the sector, suggesting a favorable environment for airlines as a whole. Investors appeared to react to the possibility that the factors driving United's success could be indicative of broader sector health, leading to increased confidence in airline stocks.
For the full-year 2025, United Airlines has projected an adjusted profit range of $11.50 to $13.50 per share, which encompasses the Wall Street consensus of $12.85 per share. This forward-looking guidance provides a further boost to investor sentiment, as it reflects a strong recovery trajectory for the airline industry after the challenges posed by the global pandemic.
The overall market response to United Airlines' earnings report underscores the interconnectedness of the airline industry, where the financial health of one major player can influence the market perception of others.
Investors and analysts alike will be watching closely to see if other airlines can match or exceed United's performance as they report their own earnings in the coming days and weeks.
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