A United Airlines Boeing 737-MAX 8 aircraft departs San Diego International Airport en route to New York on August 24, 2024.
Kevin Carter | getty images
united airlines The airline said on Tuesday it was launching a $1.5 billion share buyback as it reported higher-than-expected profits during the busy summer travel season and forecast strong results for the final three months of the year.
United expects to earn between $2.50 and $3 per share in the fourth quarter. This compares to $2.00 per share a year ago and $2.68 per share estimated by analysts surveyed by LSEG.
Below is a comparison of what United reported for the third quarter and what Wall Street expected, based on average estimates compiled by LSEG.
- Earnings per share: Adjusted $3.33 vs expected $3.17
- revenue: $14.84 $1 billion vs. Expected to be $14.78 billion
This share buyback is Manchester United’s first since the COVID-19 pandemic. U.S. airlines received more than $50 billion in government support during the pandemic travel recession, which banned stock buybacks and dividends, but the airlines were still fighting for financial stability.
Southwest Airlines Last month, it announced a $2.5 billion stock repurchase program.
“Like other major airlines and companies, we are embarking on a prudent and strategic stock repurchase program,” United CEO Scott Kirby said in a memo to employees Tuesday. “Importantly, we are committed to ensuring that investing in our people and our business will always be our top priority, even as we implement this share repurchase program.”
In the third quarter, United reported revenue of $14.84 billion, up 2.5% from a year ago and higher than analysts’ estimates. Net income was $965 million, down 15% from the previous year.
United said domestic unit revenue in August and September was positive compared to last year as airlines cut back on excess flights that are driving down fares. United expanded its production capacity by 4.1% in the third quarter. The airline said corporate revenue rose 13% in the quarter. Premium revenue, including business class tickets, increased 5%. Sales of simple basic economy tickets also increased by 20%.
Last week the airline announced extensive expansion for next year, including new flights to Mongolia, Senegal, Spain and Greenland to track international travel demand.
Adjusted for one-time items, United reported earnings per share of $3.33, beating Wall Street forecasts and United’s July estimate of $2.75 to $3.25 per share.
Airline executives are scheduled to hold a call with analysts at 10:30 a.m. ET on Wednesday and are expected to face questions about demand and production issues through the end of the year and into 2025. boeingMost factories have been idle due to a machinist strike that lasted more than a month.
