United Airlines Holdings Inc (UAL) took to the skies in the third quarter, reporting financial results that surpassed analyst expectations and sent its stock climbing in after-hours trading. The airline giant announced revenue of $14.843 billion, exceeding the consensus estimate of $14.783 billion. Adjusted earnings per share also soared, hitting $3.33, a victory over the projected $3.13. This robust performance can be attributed, in part, to a surge in travel demand, with United reporting its busiest third quarter ever in terms of revenue passenger volumes.
The airline’s success wasn’t just about passenger numbers; it also boasted a strong financial foundation. United generated a hefty $7.2 billion in operating cash flow and $3.4 billion in free cash flow year-to-date, demonstrating its financial strength. The company ended the quarter with $17.1 billion in total liquidity, providing a comfortable cushion against potential economic headwinds.
United CEO Scott Kirby expressed confidence in the airline’s trajectory, stating, “As predicted, unproductive capacity left the market in mid-August, and we saw a clear inflection point in our revenue trends that propelled United to exceed third-quarter expectations.” He emphasized the airline’s commitment to customer experience and its modernization efforts, including the United Next fleet initiative, positioning United as a leader in the industry for the foreseeable future.
Further solidifying its financial position, United’s board approved a new share repurchase program of up to $1.5 billion, a move that reflects the company’s confidence in its growth potential. The program will involve repurchasing common stock and warrants originally issued to the U.S. Treasury under the CARES Act and Payroll Support Program.
Looking ahead, United anticipates a strong fourth quarter, projecting adjusted earnings in the range of $2.50 to $3 per share. This outlook, while slightly below analyst estimates of $3.17 per share, suggests a continuation of the airline’s robust performance. The company also reaffirmed its commitment to keeping full-year 2024 adjusted capital expenditures below $6.5 billion.
United’s impressive financial performance and optimistic outlook have clearly resonated with investors, pushing its stock up 0.54% in after-hours trading, reaching $64.33 at the time of publication. The airline’s future appears bright, fueled by its strong financial standing, commitment to customer satisfaction, and strategic investments in modernization.
