United Airlines Beats Q3 Estimates with $3.33 EPS, Launches $1.5B Buyback, Projects Stronger Q4 Profit

Oct 15, 2024, 08:03 PM

United Airlines reported stronger-than-expected third-quarter earnings, with adjusted earnings per share of $3.33 surpassing analyst estimates of $3.07, though down from $3.65 a year earlier. Revenue reached $14.84 billion, slightly above expectations of $14.78 billion and up 2.5% year-over-year. Pre-tax earnings were $1.3 billion with a margin of 8.7%; adjusted pre-tax earnings were $1.4 billion with an adjusted margin of 9.7%. The airline announced its first share buyback program since 2020, authorizing $1.5 billion in repurchases. United provided fourth-quarter guidance with adjusted EPS expected between $2.50 and $3.00, in line with estimates of $2.75. The company is bouncing back from widespread fare discounts that squeezed many carriers this summer, noting strong corporate demand and sustained healthy travel trends even after the post-COVID surge. United forecasts stronger fourth-quarter profits due to pricing gains.