United Airlines posts stronger-than-expected profit but weaker sales in its third quarter
United’s full-year profit outlook falls somewhere in between the dual forecasts it issued back in April.
United, the second of the big four US airlines to report its third-quarter earnings, dropped its latest results after the bell Wednesday. Its shares ticked up about 1% in after-hours trading.
United Airlines reported adjusted earnings of $2.78 per share, beating Wall Street estimates of $2.65. Its passenger revenue climbed to $13.8 billion, below the $13.9 billion consensus estimate from analysts polled by FactSet. The figure marked a 2% jump from last year.
Ticket sales were boosted by premium cabin revenue, which rose 6% from the same period last year. Basic economy climbed 4%. United rival Delta Air Lines benefited from the same trend when it reported its third-quarter earnings earlier this month, with premium ticket retention rates in the “mid-80s,” according to President Glen Hauenstein.
United forecast adjusted earnings of between $3 and $3.50 per share for the fourth quarter. That range would put the carrier in the higher end of its full-year earnings forecast of $9 to $11 per share. That outlook falls between the dual profit forecasts it gave earlier this year ($11.50 to $13.50 for a stable year, or $7 to $9 for a recessionary environment).
As of Wednesday’s close, United shares were up 7% on the year. The stock is up 85% from lows in April, when Trump administration tariffs rocked markets.
