Analyst Note
| Burkett Huey, CFA |No-moat-rated United Airlines posted a solid fourth quarter that met the firm’s pre-omicron variant guidance, which we see as impressive, and the firm brought down full-year 2022 guidance to levels that we think are more achievable. Revenue of $8.2 billion and adjusted loss per share of $1.60 beat consensus expectations by 2.9% and 23.5%, respectively. After rolling our model into 2022, we are increasing our fair value estimate to $57 per share from $55 to reflect Morningstar’s updated assumption that corporate tax increases will not occur.