United Airlines (UAL) Announces 3Q 21 Revenue Above Expectations
United Airlines on Tuesday reported higher than expected revenues as travel rebounded at the end of the third quarter, but the airline did not give a timeline for the return to profitability.
United posted a net profit of $ 473 million thanks to an increase in federal wage supports. Its third-quarter sales totaled $ 7.75 billion compared to Wall Street analysts’ expectations of $ 7.64 billion and down 32% from the same quarter in 2019, before the onset of the pandemic of Covid-19. It posted an adjusted loss per share of $ 1.02, better than analysts expected of $ 1.67. This loss removes the benefit of federal aid.
United shares rose more than 1.7% after United’s earnings release.
Here is United’s second quarter performance against Wall Street expectations, based on average estimates compiled by Refinitiv:
- Adjusted results per share: a loss of $ 1.02 versus an expected loss of $ 1.67.
- Total income: $ 7.75 billion against $ 7.64 billion in expected revenue.
United said it expects its fourth-quarter capacity to be down 23% in the fourth quarter from 2019 and that its sales for the last three months of the year will be down 25% at 30% compared to the same period two years ago, when it grossed $ 11.38 billion. Airlines have provided comparisons to 2019 in an effort to show where they stack up against before the pandemic.
Chicago-based United is the second major US carrier to report third-quarter earnings. Delta Air Lines posted a profit last week, but warned that a surge in fuel prices would weigh on its bottom line in the last three months of the year.
A United Airlines plane prepares for take off from Mexico City’s Benito Juarez International Airport, March 20, 2020.
Pedro Pardo | AFP | Getty Images
United said it expects to pay an average of $ 2.39 a gallon for fuel in the fourth quarter, down from $ 2.14 in the third quarter.
American Airlines, Southwest Airlines and Alaska Airlines are expected to release their results Thursday morning.
United Airlines executives will discuss the results with analysts and reporters at 10:30 a.m. ET on Wednesday.