United Airlines announced a $1.5 billion share buyback program after reporting higher-than-expected earnings for the summer travel season and forecasting strong results for the last quarter of the year. The airline predicts adjusted earnings of $2.50 to $3.00 per share in the fourth quarter, up from $2.00 a year ago and matching analysts’ estimates of $2.68. For the third quarter, United posted an adjusted earnings per share of $3.33, exceeding Wall Street’s expectations of $3.17. Revenue was reported at $14.84 billion, slightly above the projected $14.78 billion.
This marks United’s first share buyback since the Covid-19 pandemic, when airlines were barred from repurchasing shares due to receiving government aid. United CEO Scott Kirby emphasized that investing in employees and the business remains a priority, even as the buyback program is implemented. United reported net income of $965 million, a decrease of 15% from the previous year, while domestic unit revenue improved in August and September. Capacity expanded by 4.1% in the third quarter, with corporate revenue rising 13% and premium revenue increasing by 5%.
The carrier also announced plans for route expansion in 2024, including new destinations in Mongolia, Senegal, Spain, and Greenland. Adjusted earnings per share for the third quarter exceeded both Wall Street forecasts and United’s earlier estimates. Airline executives are set to address analysts’ questions on demand and production issues at Boeing in an upcoming call.
Original Story https://www.cnbc.com/2024/10/15/united-airlines-ual-3q-2024-earnings.html
Category :
Tags:
