United tops profit forecasts – CNBC

United on Tuesday reported fourth-quarter earnings of $ 397 million.

On a per-share basis, the Chicago-based company said it had net income of $ 1.26. Earnings, adjusted for non-recurring costs, were $ 1.78 per share.

The results beat Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $ 1.65 per share.

The airline posted revenue of $ 9.05 billion in the period, missing Street forecasts. Five analysts surveyed by Zacks expected $ 9.06 billion.

Despite earnings falling flat, United CEO, Oscar Munoz told CNBC’s “Closing Bell” on Tuesday that he remains positive for improvement in the future.

“Flat is good and it’s the fourth quarter of progressive sort of improvement,” Munoz said. “I think the industry as a whole is seeing great momentum. From a pure business perspective, the things that we manage and control are people, are resources, our level of service we see a very positive outlook for United.”

When asked about its new seating policy that won’t allow regular carry-on bags with its new low-price tickets, Munoz said the discounted tickets will go on sale in the second quarter.

“(The tickets) will go on sale this quarter for flying in the second quarter,” Munoz said. “We’re still in the process of ensuring that we have all of our ducks in a row with regards to the procedures and ensure that all of our customers are understanding what they’re buying and make sure that when they do fly they have a pleasant experience.”

And in regards to how President-elect Donald Trump could change the airline industry, Munoz maintains it’s too early to evaluate the new administration’s impact.

“It’s too early for me, and in particular United, to sort of ascertain whether or not those (policies) will come to be, but the most balanced regulation, tax reform, infrastructure investments are very critical, whether it’s airports or roads,” Munoz said. “What’s important for us is air traffic control and modernization that’s been such a critical need for our nation for so long now.”

United shares have climbed 1 percent since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $ 73.74, an increase of 54 percent in the last 12 months.

–CNBC.com’s Rachel Cao contributed to this report.