United Airlines Holdings Inc (UAL) saw its stock price surge 5.54% in pre-market trading on Wednesday, following the release of better-than-expected first-quarter 2025 earnings and a unique dual outlook for the full year. The airline demonstrated resilience in the face of an uncertain macroeconomic environment, beating analyst estimates and providing a cautiously optimistic view for the coming quarters.

United reported adjusted earnings per share of $0.91 for Q1 2025, significantly surpassing the analysts' expectations of $0.76 per share. This marked a substantial improvement from the $0.15 loss per share reported in the same quarter last year. The company's revenue for the quarter reached $13.21 billion, representing a 5.4% increase year-over-year, though slightly below the expected $13.26 billion.

In an unprecedented move, United Airlines provided two sets of guidance for full-year 2025, reflecting the economic uncertainty. In a stable economic scenario, the airline projects adjusted earnings per share between $11.50 and $13.50. However, in a recessionary environment, United estimates earnings could range from $7.00 to $9.00 per share. This dual outlook underscores the company's proactive approach to navigating potential economic headwinds.

United CEO Scott Kirby emphasized the airline's strategy of building brand loyalty, stating, "Our ability to win brand-loyal customers and the resiliency of our business is a competitive advantage." The company reported strong growth in premium cabin revenue, up 9.2%, and international travel, with Atlantic revenue per seat-mile up 4.7% and Pacific up 8.5% year-over-year. However, the airline also announced plans to remove 4 percentage points of scheduled domestic capacity starting in the third quarter and reduce off-peak flying on lower demand days, reflecting a cautious approach to capacity management.

The market's positive response to United's earnings report and future outlook suggests investor confidence in the airline's ability to navigate the uncertain economic landscape. As the airline industry continues to face challenges, United's focus on premium services and brand loyalty, coupled with its flexible planning approach, appears to be resonating with investors.