CHICAGO, Jan 21 (Reuters) - United Airlines on

Tuesday forecast a stronger-than-expected profit in the current

quarter, after its earnings topped Wall Street estimates in the

fourth quarter on robust travel demand and improved pricing

power.

The Chicago-based airline's shares were up about 4% in

after-hours trading.

United said it is witnessing a strong and broad-based demand

for travel across all geographies.

In the December quarter, sales of its premium and basic

economy seats were up 10% and 20% year-on-year, respectively.

Corporate bookings rose 7% from a year ago.

The company said accelerating demand trends have put it

on the path to double-digit pre-tax margins in 2025, up from

7.3% a year ago.

United and rival U.S. carriers are also benefiting from

a sharp reduction in airline seats in the domestic market,

which has driven up ticket prices and bolstered

the industry's earnings outlook

.

Airline fares rose at their fastest pace in 21 months in

December on a combination of a limited supply of seats and

strong holiday travel demand.

United's total revenue per available seat mile, a proxy

for pricing power, was up 1.6% year-on-year in the December

quarter. It expects further improvements in pricing power in the

current quarter.

Earlier this month, rival Delta Air Lines ( DAL ) termed

the industry's capacity discipline a "constructive" backdrop,

which is expected to help

produce a record profit

for the company in 2025.

United expects an adjusted profit in the range of 75

cents a share to $1.25 per share in the quarter through March.

Analysts expect the company to report a quarterly profit of 54

cents a share, according to LSEG data.

For the full-year 2025, United forecast an adjusted profit

of $11.50 to $13.50 per share. That compares with $12.85 per

share expected by Wall Street analysts.

Its adjusted earnings in the December quarter came in at

$3.26 a share, compared with analysts' expectations of $3.00.

United will discuss its financial results on a call with

analysts and investors on Wednesday morning.