Excluding special charges, United reported profit of $1.40 per share, beating Wall Street's average estimate of $1.34 per share, according to Thomson Reuters I/B/E/S. United shares rose almost 3 percent in after-hours trading. In the fourth quarter, United posted a 0.2 percent increase in passenger unit revenue, in line with its earlier outlook.
Costly last-minute ticket purchases are generally a boost to airlines, especially during pricing peaks such as the busy holiday season. The Chicago-based airline's results follow a strong fourth-quarter performance and quarterly outlook by rival Delta Air Lines Inc, which reported better-than-expected profit earlier this month.
Shareholders are keeping a close eye on United's bottom line after an underwhelming third quarter sent shares tumbling. Cancellations in that quarter caused by a rash of powerful Atlantic hurricanes and a fierce fare war with low-cost competitors cost the airline several hundred millions of dollars.