A United Airlines airplane flies in front of the Empire State Building and One Vanderbilt in New York City as it comes in for a landing at Newark Liberty Airport on December 3, 2021, in Newark, New Jersey.
Gary Hershorn | Corbis News | Getty Images
United Airlines
on Wednesday posted record quarterly earnings and forecast a strong third quarter thanks to an unrelenting travel boom, led by a return of international travel.
The airline lost some of its capacity during the second quarter because of flight disruptions at its Newark, New Jersey hub. But its quarterly results and forecast still surpassed analysts’ estimates thanks to strong demand.
Shares rose roughly 4% in extended trading following the report.
Here’s what United reported for the second quarter compared with what Wall Street expected, based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: $5.03 vs. an expected $4.03
- Total revenue: $14.18 billion vs. expected $13.91 billion
United’s CEO Scott Kirby earlier this month said the company will have to reduce flights at Newark Liberty International Airport. A series of early-summer thunderstorms derailed United’s operation at the airport, disrupting thousands of flights and displacing passengers and crews, a period Kirby called “one of the most operationally challenging weeks I’ve experienced in my entire career.”
Kirby said the airline will have to cut back on flying at the hub, which serves the New York City area, to avoid disruptions when flights get backed up at the congested airport.
Still, United expects to post adjusted earnings per share of between $3.85 and $4.35 for the third quarter, far above analysts’ estimates of $3.70 a share, according to Refinitiv.
Over the weekend, United and its pilots’ union said they reached a preliminary labor deal that would give pilots raises of as much as 40% over four years, a deal that comes after years of talks.
The union estimates the deal is worth $10 billion. It still needs to be ratified by United’s 16,000 pilots but could end years of negotiations as United seeks to increase its pilot ranks amid a shortage of aviators.
The airline’s executives will hold a call with analysts at 10:30 a.m. ET on Thursday, when they are likely to face questions on both topics.
This story is developing. Please check back for updates.