The optimistic stance on United Airlines continues, with adjustments in the 2025 financial model reflecting anticipated lower fuel costs in the forthcoming years, a movement away from earlier conservative fuel cost predictions. This airline sustains its position as a top preference among legacy carriers.

Entering the reporting season, expectations are notably high and it is anticipated that airlines will unveil robust Q4 results, possibly achieving earnings at the upper end or above the mid-quarter projections updated earlier. Analysts suggest that airlines which report Revenue per Available Seat Mile (RASM) exceeding the consensus may witness appreciable market rewards during this period, as this would enhance confidence in the feasibility of achieving 2025 forecasts. However, there's minimal tolerance for any underperformance.

The analyst observes that the demand surge post-election in the sectors of airlines and lodging was more rapid and robust than initially anticipated. This uptick, paired with the compact timeline between Thanksgiving and the peak holiday season, along with a spike in end-of-year corporate travel, likely played a role in bolstering outcomes, as noted by the analyst while updating airline estimates.