United Airlines (UAL) has reported mixed second-quarter financial results and issued weak forward guidance as the carrier struggles with an oversupply of flights.
The Chicago-based carrier announced earnings per share (EPS) of $4.14 U.S. versus $3.93 U.S. that had been forecast on Wall Street.
Revenue during the quarter came in at $14.99 billion U.S., which was below estimates of $15.06 billion U.S. Sales were up 5.7% from a year ago.
Despite the miss on revenue, United’s Q2 profit was up 23% from a year earlier as strong demand for international travel boosted the company’s earnings.
The third-quarter guidance offered by the carrier also fell short of estimates, with management saying they expect to earn $2.75 U.S. to $3.25 U.S. per share.
Wall Street had third-quarter earnings of $3.44 U.S. a share penciled in for the company.
United reiterated its full year forecast for earnings of $9 U.S. to $11 U.S. per share.
The airline has been working to give travelers what they want coming out of the pandemic. United has added international flights and premium offerings such as bigger lounges and inflight seats, capitalizing on people’s willingness to pay more money for a ticket.
United said that its “premium revenue” grew more than 8% from last year in Q2. Flights to Europe rose more than 5% compared with the year earlier quarter.
The stock of United Airlines has gained 15% this year to trade at $46.94 U.S. a share. However, the stock is still 50% below its 2019 pre-pandemic peak.
Related Stories
