A United Airlines flight takes off at Newark Liberty Airport.
Gary Hershorn | Getty Images
United Airlines Holdings on Tuesday lifted its earnings forecast for the year as travel demand continued to climb, increasing the share of afternoon trade.
The airline's results put it "ahead of pace" to meet $ 11 to $ 13 per share earnings targets by the end of 2020, United CEO Oscar Munoz said in a release.
The Chicago-based carrier raised its 201
United's net income for the third quarter jumped almost 23% to more than $ 1.02 billion from the same period last year, with revenue of $ 11.38 billion, up 3.4% from the previous year. , but below the projected nearly $ 11.42 billion analysts.
United, as rivals American and Southwest, have been forced to cancel thousands of flights due to the founding of the Boeing 737 Max. Last week, United teamed up with these carriers when they pulled Max out of their plans until January when the ground support drags on.
The anchorage of the aircraft, now in its eighth month, has burdened the airlines' growth plans. United said they expect to increase capacity by 3.5% this year, below the 4% -6% annual capacity growth it targeted.
The airline did not mention Max in the revenue release, but it is likely to be a matter of conversation with analysts, scheduled for 10:30 ET on Wednesday.
Revenue per available seat mile, a key industry metric that measures how much an airline earns for each seat it flies a mile, rose 1.7%, in line with United's forecast over the summer. United expects this estimate to rise no more than 2% in the fourth quarter.
United's earnings per share came in at $ 4.07 on an adjusted basis, compared to $ 3.97 per share Wall Street analysts estimated.
The carrier stated that it repurchased $ 363 million of the shares in the quarter at an average price of $ 88.22. United's share is up 5% so far this year as of Tuesday's close. Large US airlines across the board are lagging the broader market as they struggle to convince investors that they can increase profits and keep the lid on rising costs.