United Airlines reports over 20% increase in Q2 profit, but falls short of Q3 estimates

From CNBC: 2024-07-17 18:45:51

United Airlines reported a more than 20% increase in second-quarter profit, fueled by strong international travel demand. However, the carrier’s third-quarter forecast fell short of estimates due to an oversupply of flights affecting fares. Revenue for the quarter was $14.99 billion, just below expectations.

United expects adjusted earnings of $2.75 to $3.25 per share in the current quarter, below analyst estimates of $3.44 per share. The company earned $1.32 billion, or $3.96 per share, in the second quarter, adjusted EPS was $4.14, beating estimates of $3.93 per share.

United, along with Delta Air Lines, continues to outperform U.S. airline competitors amidst challenges in the industry. Both carriers have benefited from increased international travel demand post-pandemic and have introduced premium services to cater to high-paying customers.

United’s premium revenue grew over 8% from last year, while basic economy ticket sales rose 38%. Despite a 5% increase in domestic flying, unit revenues fell over 1%. Yields on flights to/from Europe saw a more than 5% increase compared to 2023’s second quarter.

United CEO Scott Kirby mentioned that airlines will reduce unprofitable routes to stabilize the market by mid-August. Other airlines like Spirit, Southwest, and American have revised their second-quarter forecasts due to weaker revenue, signaling ongoing industry challenges.



Read more at CNBC: United (UAL) earnings Q2 2024