United Continental Holdings Inc (NYSE:UAL) had a strong first quarter that topped analysts’ expectations.

The United Airlines parent company kicked off its fiscal 2018 on the right note as it posted earnings of 50 cents per share on an adjusted basis, rising more than 20% compared to the year-ago quarter. Analysts were calling for adjusted earnings of 49 cents per share.

United Continental’s quarterly revenue also came in ahead of the mark at $9.032 billion, ahead of the $9.013 billion that Wall Street called for in its consensus estimate. United revenue met the high end of analysts’ guidance as it increased 2.7% compared to the year-ago quarter.

The carrier added that for its fiscal year 2018, it sees adjusted earnings being in the range of $7 to $8.50 per share, which is in line with analysts’ expectations of full-year adjusted earnings of $7.83 per share on average.

For its second quarter, United Continental projects a revenue increase of 1% to 3% compared to the year-ago quarter, while capacity is expected to grow by 4% to 5% year-over-year during the quarter. The company also sees its adjusted pretax margins for the period as being in the range of 9% to 11%.

United Continental also expects unit costs, excluding third-party business expenses, fuel and profit sharing to be flat to up 1% during its fiscal second quarter.

UAL stock surged 3% after the bell Tuesday on the company’s earnings beat.