United Airlines Reports Record Earnings and Strong Forecast Amid Travel Boom

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United Airlines announced record quarterly earnings and a robust forecast for the third quarter as travel demand continues to surge, especially for international travel. The airline’s second-quarter results exceeded analysts’ expectations despite facing capacity losses due to flight disruptions at its Newark hub in New Jersey. The positive outlook for the third quarter echoes the upbeat travel demand projections made by Delta Air Lines.

United and other carriers have been capitalizing on the resurgence in travel demand by expanding their international service, with revenue from international flights now constituting about 40% of United’s total sales. The growth in international revenue is outpacing domestic sales.

For the second quarter, United reported adjusted earnings per share of $5.03, surpassing the expected $4.03, and total revenue of $14.18 billion, higher than the anticipated $13.91 billion. Net income reached $1.08 billion, or $3.24 per share, compared to $329 million, or $1 per share, during the same period last year. After adjusting for certain items, including a pilot bonus as part of a new preliminary labor deal, the company earned $1.67 billion, or $5.03 per share.

United’s bottom line benefited from a 26% reduction in fuel costs, contributing to a 17% year-over-year increase in total revenue.

Despite the disruption caused by thunderstorms at Newark Liberty International Airport, United’s capacity for the second quarter rose by 17.5% compared to the same period in 2022, slightly below its initial plans due to the disruptions.

CEO Scott Kirby acknowledged the challenges faced by the airline during the earnings release but praised the United team’s perseverance. He emphasized their focus on making improvements, particularly at Newark, to enhance customer service.

Looking ahead, United is set to grow capacity by about 16% in the third quarter, with estimated revenue growth of up to 13% compared to the same period in 2022. The airline expects adjusted earnings per share of $3.85 to $4.35 for the third quarter, surpassing analysts’ estimates.