Proactive Investors - United Airlines (NASDAQ:UAL) Holdings Inc (NASDAQ:UAL, ETR:UAL1) shares traded higher after stronger-than-expected profits for the second quarter overshadowed an earnings miss and softer guidance.
Adjusted earnings per share (EPS) for Q2 were $4.14, in line with the airline’s guidance and ahead of Street estimates of $3.97.
Revenue of $14.99 billion fell short of expectations of $15.13 billion.
Capacity was up 8.3% from the year-ago quarter.
For the third quarter, United Airlines projected adjusted EPS of $2.75 to $3.25, below estimates of $3.61, as it warned of the industry nearing an “inflection point,” noting that published schedule changes show a 3 point decline in industry capacity growth rate.
"The revenue diversity advantages that we've built with our premium customers, Basic Economy customers, and domestic road warriors, on top of the world's best loyalty program and leading customer service, have propelled our margins to near the top of the industry," United Airlines CEO Scott Kirby said in a statement.
"Looking forward, we see multiple airlines have begun to cancel loss-making capacity, and we expect leading unit revenue performance among our largest peers in the second half of the third quarter.”
It maintained its full-year EPS outlook of $9 to $11 for 2024.
Shares of United traded up 2% just shy of $48, having gained 17% in the year to date.