Business

United Airways (UAL) studies third quarter 21 income above expectations

United Airlines reported higher-than-expected revenue Tuesday as travel rebounded towards the end of the third quarter, but the airline did not provide a schedule for a return to profitability.

United posted $ 473 million in net income thanks to a boost from the federal payroll. Third quarter revenue was 7.75 billion, with an adjusted loss of $ 1.02 per share, better than analysts’ expectations of $ 1.67. This loss robs the benefits of federal aid.

United shares rose more than 1.7% in postmarket trading after United released the results.

Here’s how United performed in the second quarter compared to Wall Street’s expectations, based on Refinitiv’s average estimates:

  • Adjusted earnings per share: a loss of $ 1.02 versus an expected loss of $ 1.67.
  • Total sales: $ 7.75 billion versus expected $ 7.64 billion in revenue.

United expects fourth-quarter capacity to decrease 23% in the fourth quarter compared to 2019 and that revenue for the last three months of the year would decrease 25-30% from the same period two years ago when it raised $ 11.38 billion. The airlines have provided comparisons with 2019 to show where they stand compared to before the pandemic.

Chicago-based United is the second major US airline to post third-quarter earnings. Delta Air Lines made a profit last week but warned that a spike in fuel prices would weigh on bottom line results for the last three months of the year.

A United Airlines plane prepares to take off from Benito Juarez International Airport in Mexico City on March 20, 2020.

Pedro Pardo | AFP | Getty Images

United expects to pay an average of $ 2.39 a gallon for fuel in the fourth quarter, up from $ 2.14 in the third quarter.

American Airlines, Southwest Airlines and Alaska Airlines are expected to release the results Thursday morning.

United Airlines executives will discuss the findings with analysts and reporters on Wednesday at 10:30 am ET.

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