Airline earnings continue to roll out this week led by a big beat for United Airlines late Monday. American Airlines (AAL) and Southwest Airlines (LUV) report Thursday. JetBlue (JBLU) is on tap next week. Airline stocks gained altitude late Monday as UAL stock spiked on results.

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Analysts broadly expect a soft quarter for the industry due to rising fuel prices and cost concerns. Delta Air Lines (DAL) beat Q4 views on Jan. 12. But Delta fell short of its long-term goal of EPS greater than $7 in 2024 and guided full-year earnings between $6 and $7 per share, Barron’s reported. Still, the outlook was in-line with FactSet predictions of $6.50 per share.

Meanwhile, some major airlines are grappling with fall out from mechanical issues on Boeing (BA) 737 Max 9 jets after an emergency exit door blew out during an Alaska Airlines (ALK) flight on Jan. 5. The Federal Aviation Administration grounded all 171 of the 737 Max 9 aircraft in service for safety inspections, which affected 79 jets in United’s fleet. On Monday, the FAA urged additional inspections of mid-exit door plugs for Boeing 737-900ER planes after some operators found issues with the bolts during inspections.

Elsewhere, adverse winter weather prompted the cancellation of more than 2,200 flights early last week and delayed an additional 6,800 routes.

United Airlines

United Airlines (UAL) Q4 adjusted earnings fell 18.7% to $2.00  per share. Revenue growth slowed for the third consecutive quarter, increasing  9.9% to $13.63 billion.

FactSet analysts expected a 31% drop to $1.69 per share on 9.3% revenue growth to $13.55 billion.

Full-year adjusted earnings leapt to $10.05 per share compared to $2.52 per share last year, and beat estimates of $9.76 per share. United’s full-year revenue jumped 19.5% to $53.72 billion, edging out FactSet forecasts of $53.64 billion.

Fourth-quarter capacity increased 14.7% year-over-year and passenger revenue climbed 10.9% to $12.42 billion.

For Q1, United expects an adjusted loss between 85 cents and 35 cents per share, while FactSet expects a loss of 24 cents per share. United Airlines guided fiscal 2024 earnings between $9 and $11 per share, compared to FactSet predictions of $9.48 per share.

UAL stock leapt more than 6.5% late Monday. Shares faded 1% during trade leading up to the report. United slid 6.8% in 2024 through Monday’s close amid flight cancellations and Boeing concerns.

American Airlines

For American Airlines results early Thursday, analysts predict adjusted earnings to fall to 11 cents per share from $1.17 per share last year on a 1.3% revenue decline to $13.01 billion. American Airlines’ revenue growth declined the last seven quarters.

AAL stock swung about 3.2% higher late Monday after United’s report. Shares ticked slightly lower Monday to close below short-term support at its 21-day exponential moving average and 10-day line. Shares are trending toward their 200-day moving average.

Southwest

Southwest Airlines earnings are expected to improve to 12 cents per share from a loss of 38 cents per share last year while sales rise 9.3% to $6.75 billion. Southwest Airlines reported accelerating earnings declines the past two quarters.

LUV stock jumped nearly 4% late Monday. LUV stock closed up 0.6% Monday to perch just above its 200-day line. Shares jumped 4.4% so far this year.

JetBlue

JetBlue reports Q4 results on Jan. 30 after a federal judge last Tuesday blocked its $3.8 billion buyout of Spirit Airlines (SAVE). JetBlue and Spirit plan to contest the court ruling. Meanwhile, analysts expect JetBlue to report a loss of 27 cents per share compared to earnings of 22 cents per share last year. Revenue is seen declining 5.4% to $2.28 billion.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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