On August 24, 2024, a United Airlines Boeing 737-MAX 8 aircraft took off from San Diego International Airport bound for New York.
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United Airlines The airline said on Tuesday it would begin a $1.5 billion share buyback as it reported better-than-expected profits for the busy summer travel season and forecast strong results for the final three months of the year.
United Airlines expects fourth-quarter adjusted earnings of $2.50 to $3.00 per share, compared with $2.00 per share in the same period last year. Analysts polled by London Stock Exchange Group (LSEG) expected earnings per share of $2.68.
Here’s how United’s third-quarter report compares to Wall Street expectations, based on average estimates compiled by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $3.33, expected $3.17
- income: $14.84 $1 billion vs. $14.78 billion expected
The stock buyback will be United’s first since before the Covid-19 pandemic. U.S. airlines have received more than $50 billion in government aid during the pandemic travel recession, which bans stock buybacks and dividends, but airlines are still struggling for financial stability.
Southwest Airlines announced $2.5 billion share repurchase program last month.
“Like other leading airlines and companies, we are initiating a prudent and strategic stock repurchase program,” United CEO Scott Kirby said in a note to employees on Tuesday. The commitment is that even as we implement this stock repurchase program, investing in our people and our business remains my top priority. “
United Airlines’ third-quarter revenue was US$14.84 billion, an annual increase of 2.5%, higher than analysts’ expectations. The company reported net profit of $965 million, down 15% from the same period last year.
United said domestic unit revenue was positive in August and September compared with last year, as the airline cut excess flights that led to lower fares. United Airlines expanded its capacity by 4.1% in the third quarter. The airline said its corporate revenue rose 13% in the quarter; premium income, including business class tickets, increased 5%; and sales of its no-frills basic economy class tickets increased 20%.
The airline launched last week long distance expansion Next year, the airline will add flights to Mongolia, Senegal, Spain and Greenland to meet international travel demand.
Adjusting for one-time items, United reported earnings of $3.33 per share, above Wall Street forecasts and United’s July earnings per share forecast of $2.75 to $3.25.
Airline executives will hold a conference call with analysts at 10:30 a.m. ET on Wednesday and are likely to face questions about year-end and 2025 demand as well as production issues. boeing companymost factories have been idle for more than a year Month-long machinists strike.
