United Airlines optimistic about high-end travel demand and loyalty advantage, stock price rises after hours
United Airlines has released an optimistic outlook for the current quarter and full year, with strong demand from high-income and corporate travelers driving the company's performance. The Chicago-based airline also reported profits in December that exceeded expectations. United's financial report highlights how American airlines are increasingly relying on premium cabins, corporate travel, and loyalty programs to drive profit growth, even as competition and soft demand from price-sensitive passengers put pressure on economy class fares. United Airlines said that high-end passenger revenue in the December quarter increased by 9% year-on-year, while revenue from loyal passengers grew by 10%. United Airlines' stock price rose by about 4.2% in after-hours trading. American Airlines is set to release its earnings next week and has increased focus on its premium products, causing its stock price to rise by 1%.
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