Airline stocks witnessed a significant rally on Wednesday following United Airlines' impressive first-quarter earnings report, which surpassed expectations. United Airlines' stock (UAL) skyrocketed after posting a loss of 38 cents per share, compared to a loss of 59 cents the previous year. Adjusted earnings stood at a loss of 15 cents per share. The company also reported a solid revenue increase of 9.7%, reaching $12.54 billion. FactSet analysts had predicted a loss of 54 cents per share on $12.45 billion in sales.

United Airlines attributed $200 million in losses during the quarter to the grounding of the Boeing 737 Max 9. Despite this setback, the company remains optimistic and expects adjusted earnings for the second quarter to range from $3.75 to $4.25 per share, surpassing last year's earnings of $3.24 per share. Wall Street anticipates second-quarter earnings of $3.69 per share. United Airlines also maintained its full-year earnings outlook of $9 to $11 per share, in line with FactSet's prediction of $9.16 per share for 2024.

The positive news regarding United Airlines had a ripple effect on the rest of the industry, boosting other major airline stocks. UAL stock experienced an impressive 17.5% surge on Wednesday, surpassing both its 50-day moving average and 200-day line. This surge contributed to an overall 18% increase in United shares so far this year.

Delta Air Lines, a major competitor of United, also experienced a 2.9% increase in stock price. Delta had previously reported an 80% earnings increase and exceeded expectations for its Q1 results. Meanwhile, American Airlines saw a 6.6% surge in stock price, resulting in a 1% gain for the year. American Airlines is scheduled to release its first-quarter results on April 25.

Overall, the impressive performance of United Airlines and the positive outlook for the airline industry have fueled investor confidence and are expected to have a positive impact on the market going forward.