United Airlines (UAL) Earnings 3Q 22

United Airlines Forecasting another gain at the end of the year, he said despite higher airfares, consumer interest in travel shows no signs of waning.

Shares rose more than 7% in after-hours trading on Tuesday.

“Looking forward to the end of the year, the airline expects strong Covid recovery trends to continue to offset recessionary pressures in the macroeconomic environment,” United said in an earnings release. “The airline now expects fourth-quarter adjusted operating margin to exceed 2019 for the first time.”

The Chicago-based carrier reported third-quarter profit of $942 million, down 8% from three years ago, on revenue of $12.88 billion, up 13% from 2019, beating analysts’ estimates.

United Airlines Boeing 777-200 aircraft

Nicolas Economou | NurPhoto | Good pictures

Adjusting for one-time items, United earned $2.81 a share, easily topping the $2.28 analysts expected by Refinitiv.

The airline said it expects fourth-quarter adjusted earnings of $2.25 per share, versus analysts’ estimates of 98 cents, according to Refinitiv.

A strong summer travel season and the prospect of sunshine later in the year indicate that consumers are willing to continue spending on travel since the start of the pandemic when Covid-19 restrictions killed demand. Delta Air Lines He said he brought it last week record earnings It predicts another gain in the third quarter and another in the fourth quarter.

The upbeat views of airline executives contrast with other sectors fought This year, including regions Retail sales The industry and some streaming platforms were the beneficiaries of lockdowns early in the pandemic.

Here’s how United fared in the third quarter, compared to what Wall Street expected, based on average estimates compiled by Refinitiv:

  • Adjusted earnings per share: $2.81 and the expected $2.28
  • Total Revenue: $12.88 billion and $12.75 billion expected.

American airline executives recently noted that Strong demand for Europe CNBC reported last month that those markets are continuing to hold high capacity past the summer peak and into the fall.

Due to delays in aircraft deliveries, airlines are limited in how many aircraft they can deliver Supply chain issues and other issues, and carriers struggle to hire and train new employees, esp Pilots.

A limited supply of flights drives up fares. United’s third-quarter revenue was 25% higher than three years ago. In the current quarter, that figure is expected to be higher compared to 2019.

Meanwhile, the carrier said its fourth-quarter capacity would be down 10% compared to 2019, while it would remain the same as its capacity in the third quarter.

United executives will hold a call with analysts at 10:30 a.m. EDT on Wednesday.

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