United Airlines reaps $942 million profit on strong summer
ASSOCIATED PRESS / SEPT. 14
A United Airlines jetliner takes off from a runway at Denver International Airport in Denver. Airlines say travelers are still booking trips despite uncertainty over inflation and the economy. That’s boosting the bottom line at United Airlines, which looks for a big summer of international travel next year. The company’s third-quarter earnings are reported today.
United Airlines earned $942 million in the third quarter as vacationers paid higher fares and packed planes over the summer, and the airline offered an upbeat forecast of late-year earnings.
United said Tuesday that concern about inflation and the economy does not seem to be discouraging people from buying airline tickets.
The Chicago-based airline said adjusted earnings were $2.81 per share, compared with a forecast of $2.28 among analysts in a FactSet survey.
United forecast that fourth-quarter earnings will be between $2 and $2.25 per share, well above a FactSet forecast of 98 cents per share.
Third-quarter revenue rose to $12.88 billion, topping analysts’ target of $12.74 billion.
The United report came a week after Delta Air Lines posted a $695 million third-quarter profit and also gave a rosy forecast for the holidays and the fourth quarter.
U.S. air travel has bounced back from the onset of the pandemic. Nearly 2.5 million travelers went through airport security checkpoints on Sunday, the biggest travel day since February 2020, according to Transportation Security Administration figures. Fares are higher than in 2019, resulting in airline revenue exceeding 2019 levels on a per mile basis.
