Several major brokerage firms reiterated positive outlooks for United Airlines Holdings (UAL) ahead of its fourth-quarter 2025 earnings release. Analysts cite three key drivers for their constructive stance: strong free cash flow generation, robust customer loyalty, and improving unit revenues. This optimism reinforces the current investment narrative for the company.
Bank of America analysts project United could generate more than $2 billion in free cash flow. This strong cash generation acts as a near-term catalyst.
The airline gains greater flexibility to manage its debt and invest in the 'United Next' growth plan. Strong FCF also allows United to potentially enhance shareholder returns. The company navigates concurrent risks from higher labor and financing costs.