United Airlines Holdings Inc. has announced its third-quarter earnings, exceeding expectations on Wall Street. However, the airline anticipates lower profits in the coming months.

Financial Performance

In the third quarter, United Airlines recorded a profit of $1.1 billion, equivalent to $3.42 per share. This surpassed last year's figure of $942 million, or $2.86 per share. The adjusted earnings for the quarter were reported at $3.65 per share. Sales for the quarter increased from $12.9 billion to $14.5 billion compared to the same period last year.

Better Than Expected Results

Analysts surveyed by FactSet projected United Airlines to achieve an adjusted earnings figure of $3.38 per share, with sales totaling $14.4 billion. United has outperformed these forecasts.

Fourth-Quarter Outlook

The airline foresees fourth-quarter earnings of approximately $1.80 per share if flights to Tel Aviv are suspended until the end of October. If the suspension extends until the end of the year, earnings are expected to be around $1.50 per share. These estimates come as a result of the recent Israel-Hamas conflict. Wall Street had predicted fourth-quarter earnings of $2.09 per share.

Positive Growth Opportunities

United Airlines is aiming to tap into continuous air-travel demand by acquiring an additional 110 new jets from Boeing Co. and Airbus SE. This move aligns with their United Next plan, which focuses on fuel efficiency and introducing newer planes equipped with premium seating options.

Stock Performance

United Airlines' stock has shown moderate growth this year, with a 7% increase, compared to the S&P 500 index's overall advance of 14%.

Conference Call

United Airlines will discuss its third-quarter results and provide an update on its year-end outlook in a conference call scheduled for Wednesday at 10:30 a.m. Eastern time.

Leave Comment