Shares of the carrier were up 3% and on track to recover some of their losses from what has been a tumultuous last few months for U.S. airlines. The shares have fallen 31% this year.
Trump's trade policies and sweeping tariffs have sparked a global trade war and raised the odds of the world spiraling into recession, making customers hesitant to spend on travel.
Expectations of a gloomy demand environment have prompted airlines to take a prudent approach with capacity and cost controls. Several U.S. airlines are cutting flights to avoid lowering fares and to protect margins.
United on Tuesday reported better-than-expected first-quarter earnings and said forward bookings for high-margin premium cabins rose 17% over the past two weeks, with international reservations up 5% during the same period.
"This was a well-executed quarter, and we expect UAL to outperform given its premium revenue base, strong loyalty program, and solid balance sheet," BoFA said in a note, while maintaining its "buy" rating on the stock.
United said it expects to hit its full-year adjusted profit forecast of $11.50 to $13.50 per share if demand remains stable and fuel prices stay around the current levels.
"Stable booking trends in recent weeks and lower 2H25 capacity growth keeps the EPS guide in the prior range, a strong outlook following months of increasing fundamental fears across airline and specifically UAL shares," Barclays said in a note.
But United also warned the forecast was dependent on the macro environment, which it added was "impossible to predict this year with any degree of confidence."
If recession occurs, it would lead to a 5-percentage point drop in its revenue and translate into a full-year adjusted profit of $7 to $9 a share.
This stands in contrast to rival Delta Air Lines (DAL.N), which withdrew its full-year outlook last week, citing "stalled" demand growth.
