United Airlines posts higher-than-expected revenue after travel demand rebounds

United Airlines on Tuesday reported higher-than-expected revenue as vacationers returned in the summertime, regardless of a hit from the delta variant. The airline did not give a timeline for when it will return to profitability.

United posted internet revenue of $473 million due to a lift from $1.13 billion in federal payroll support. Its third-quarter gross sales totaled $7.75 billion in contrast with Wall Street analysts’ expectations for $7.64 billion and down 32% from the identical quarter in 2019, earlier than the Covid-19 pandemic started. It posted a per-share adjusted lack of $1.02, higher than the $1.67 analysts anticipated. That loss strips out the advantage of federal support.

United shares have been up greater than 1.7% in postmarket buying and selling after United reported its earnings outcomes.

Here’s how United carried out within the second quarter in contrast with what Wall Street anticipated, based mostly on common estimates compiled by Refinitiv:

  • Adjusted outcomes per share: a lack of $1.02 versus an anticipated lack of $1.67
  • Total revenue: $7.75 billion versus anticipated $7.64 billion.

United stated it expects its fourth-quarter capability to be down 23% in contrast with 2019 and that its gross sales for the final three months of the 12 months can be down 25% to 30% from the identical interval two years in the past, when it introduced in $11.38 billion. Airlines have offered comparisons to 2019 in an try to indicate the place they stand in contrast with earlier than the pandemic.

Chicago-based United is the second main U.S. provider to report third-quarter earnings. Last week Delta Air Lines posted a revenue however warned a surge in gas costs would weigh on its backside line within the final three months of the 12 months.

A United Airlines airplane prepares to take off on the Benito Juarez International airport in Mexico City, on March 20, 2020.

Pedro Pardo | AFP | Getty Images

United stated it expects to pay a mean of $2.39 a gallon for gas within the fourth quarter, up from $2.14 within the third quarter.

American Airlines, Southwest Airlines and Alaska Airlines are scheduled to report outcomes Thursday morning.

United Airlines executives will focus on outcomes with analysts and reporters on an earnings name Wednesday at 10:30 a.m. ET.

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