United Airlines Holdings Inc. (NASDAQ: UAL) reported a 54% jump in earnings for the second quarter of 2019 as the continued successful implementation of its strategy led to it delivering two straight quarters of solid pre-tax margin growth. The results exceeded analysts’ expectations.
Net income climbed by 54% to $1.05 billion or $4.02 per share. Adjusted earnings jumped by 31% to $4.21 per share.
Revenue grew by 6% to $11.40 billion. Total passenger revenue increased 6.1%.
Looking ahead, the company raised the mid-point of full-year 2019 adjusted earnings guidance to a new range of $10.50 to $12 per share from the current forecast of $10 to $12 per share. Adjusted capital expenditures are anticipated to be about $4.9 billion.
The company unveiled next paint design, which brings a refreshed look to its fleet, serving as a visual representation of the airline’s ongoing brand evolution. During the quarter, United Airlines took delivery of two Boeing 787-10 aircraft, two used Airbus A319 aircraft, and seven Embraer E175 aircraft operated by its regional partners. The company signed agreement to buy 19 used Boeing 737-700 aircraft with deliveries expected beginning in December.
For the second quarter, consolidated passenger revenue per available seat mile increased by 2.5% year-over-year, while consolidated unit cost per available seat miles declined by 0.4%. Revenue passenger miles grew by 5.1% and available seat miles rose by 3.6%. Consolidated passenger load factor increased by 1.2 points.
Also read: Will Boeing 737 Max take off again this year?
On July 15, 2019, the company’s board of directors authorized a new $3 billion share repurchase program. The company had repurchased $536 million of its common shares in the second quarter of 2019, at an average purchase price of $84.07 per share.
United’s peers American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV) and Alaska Air Group (NYSE: ALK) will be reporting their quarterly results on July 25. Last week, Delta Air Lines (NYSE: DAL) reported better-than-expected revenue and earnings for the second quarter of 2019.
Shares of United Airlines ended Tuesday’s regular session up 2.85% at $93.92 on the Nasdaq. Following the earnings release, the stock rose 0.78% in the after-market session.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions
Most Popular
United Parcel Service (UPS) seems on track to regain lost strength
Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic
IPO Alert: What to look for when Boundless Bio goes public
Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.
Nike (NKE) bets on innovation and partnerships to return to high growth
Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company
Comments
Comments are closed.