A United Airlines plane flies in front of the Empire State Building and One Vanderbilt in New York City as it approaches for landing at Newark Liberty Airport on December 3, 2021 in Newark, New Jersey.
Gary Harshhorn | Corbis News | Getty Images
United Airlines On Wednesday, it posted record quarterly earnings and forecast a strong third quarter thanks to an unbridled travel boom fueled by the return of international travel.
The airline lost some capacity during the second quarter due to disruptions to flights at its Newark, New Jersey hub. But its quarterly results and forecast still beat analysts’ estimates thanks to strong demand.
Shares rose nearly 3 percent in extended trading after the report.
what is here Muttahida reported. Compared to Wall Street expectations for the second quarter, based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: $5.03 vs. expected $4.03
- Total Income: $14.18 billion versus the expected $13.91 billion
United reported net income of $1.08 billion, or $3.24 per share, compared with $329 million, or $1 per share, in the same period last year. Adjusting for one-time items, the company earned $1.67 billion, or $5.03 per share.
United CEO Scott Kirby said earlier this month that the company would have to reduce flights to Newark Liberty International Airport. An early summer thunderstorm derailed United’s operations at the airport, affecting thousands of flights and displacing passengers and crew.
“The United team persevered through an unprecedented series of events late last month,” Kirby said in Wednesday’s earnings release. “They are the best in the business and we are focused on the key changes we can make, especially in Newark, to serve our customers even better.”
Kirby said earlier this month that the airline would have to cut back on the hub, which serves the New York City area, to avoid disruptions when flights are backed up at the congested airport.
Still, United expects revenue to grow about 16 percent from last year in the three months ending Sept. 30 and up 13 percent over the same period in 2022. United expects to post adjusted earnings of between $3.85 and $4.35 per share for the third quarter, topping analysts’ estimates of $3.00.
Separately over the weekend, United and its pilots’ union said they had reached an initial labor deal that would give pilots a raise of up to 40 percent over four years, the deal coming after years of negotiations.
The union estimates the deal is worth $10 billion. It still needs to be ratified by United’s 16,000 pilots but could end years of negotiations as United looks to increase its pilot numbers amid a shortage of pilots.
Airline executives will hold a call with analysts at 10:30 a.m. ET on Thursday, when they may face questions on both topics.