United Airlines on Tuesday reported higher-than-expected earnings as travelers returned in the summer despite hitting the delta option. The airline did not say when it will return to profitability.
United posted a net profit of $ 473 million thanks to an increase in federal payroll assistance from $ 1.13 billion. Its third-quarter sales were $ 7.75 billion, compared with Wall Street analysts’ expectations of $ 7.64 billion, down 32% from the same quarter in 2019, before the onset of the Covid-19 pandemic. Adjusted loss per share was $ 1.02, higher than analysts’ expectations of $ 1.67. This loss makes federal aid impossible.
United rose more than 1.7% in post-market trading after United released financial results.
Here’s what United looked like in the second quarter compared to Wall Street’s expectations, based on Refinitiv’s average estimates:
- Adjusted results per share: loss of US $ 1.02 versus expected loss of US $ 1.67
- Total income: $ 7.75 billion versus the expected $ 7.64 billion.
United said it expects its fourth-quarter production capacity to decline 23% from 2019, and that its sales in the last three months of the year will fall 25-30% from the same period two years ago when it brought in $ 11.38. billion. The airlines presented comparisons to 2019 to show where they are compared to the pre-pandemic period.
Chicago-based United is the second largest US airline to report third-quarter earnings. Delta Air Lines reported earnings last week but warned that higher fuel prices would impact its bottom line in the last three months of the year.
A United Airlines plane prepares to take off at Benito Juarez International Airport in Mexico City on March 20, 2020.
Pedro Pardo | AFP | Getty Images
United said it expects to pay an average of $ 2.39 per gallon for fuel in the fourth quarter, up from $ 2.14 in the third quarter.
American Airlines, Southwest Airlines and Alaska Airlines are due to report the results Thursday morning.
United Airlines executives will discuss the results with analysts and reporters during a conference call Wednesday at 10:30 am ET.