United Airlines plane parked at Denver International Airport.
Leslie Josephs | CNBC
United AirlinesSecond-quarter profit rose more than 20% from last year as strong demand for international travel boosted the airline’s performance, but its third-quarter forecast was lower than expected as a glut of flights affected fares.
Unity said wednesday The company expects adjusted earnings per share for the quarter of $2.75 to $3.25, below the $3.44 per share forecast by analysts surveyed by LSEG.
Here’s what Manchester United reports second season Compared with Wall Street expectations, according to average estimates compiled by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $4.14, expected $3.93
- income: $14.99 US$15.06 billion vs. US$15.06 billion expected
United earned $1.32 billion, or $3.96 a share, in the three months ended June 30, up from $1.08 billion, or $3.24 a share, in the same period last year. After adjusting for one-time items, United reported second-quarter earnings of $4.14 per share, compared with analysts’ expectations of $3.93.
Revenue was US$14.99 billion, up 5.7% from last year but slightly below expectations.
United reiterated its full-year adjusted earnings per share forecast of $9 to $11.
Unity and Delta Airlines,It also Disappointed With its third-quarter guidance, the company remains the leader in the airline industry. Most airlines have been grappling with increased domestic capacity in the United States, which has put pressure on airfares, Despite record demand.
Both airlines have added international flights, which are in high demand post-pandemic, and offer premium services such as larger lounges and more spacious seats, capital Travelers who are willing to pay more for airfare.
United said Wednesday that premium revenue was up more than 8% from last year, while sales of its most restrictive basic economy fares were up 38% as it met demand at both ends of the market.
United’s domestic flights in the second quarter increased by more than 5% compared with the same period last year, and unit revenue fell by more than 1% compared with the same period last year. Revenues from flights to and from Europe accounted for a smaller portion of United’s sales compared with the second quarter of 2023, but were up more than 5%.
United CEO Scott Kirby said the airline has been cutting flight schedules and there will be an inflection point in mid-August to reduce supply.
“Looking ahead, we see multiple airlines beginning to cancel loss-making capacity and we expect unit revenue performance in the second half of the third quarter to be ahead of our largest peers,” he said.
Tuesday, spirit airlines It lowered its second-quarter forecast, citing lower-than-expected revenue from fees such as seats or baggage. Southwest Airlines and American airlinesreport results on July 25, reduced before Their Second quarter estimate.
