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United Airlines announced on Tuesday a $1.5 billion share buyback program alongside better-than-expected earnings for the summer travel season. The airline forecasts strong results for the fourth quarter, with adjusted earnings per share expected to be between $2.50 and $3.00. This is compared to $2.00 a share in the same period last year and the $2.68 estimate by analysts.
In the third quarter, United reported revenue of $14.84 billion, up 2.5% from the previous year. Net income was $965 million, a 15% decrease from the same period in 2023. The airline saw positive domestic unit revenue in August and September as flight capacity was adjusted to improve fares. Corporate revenue rose by 13%, premium revenue by 5%, and basic economy ticket sales by 20%.
The share buyback marks United’s first since before the Covid-19 pandemic, as government aid prohibited such actions during the travel slump. Other airlines, like Southwest Airlines, have also initiated share repurchase programs recently.
United’s expansion plans for next year include new flights to Mongolia, Senegal, Spain, and Greenland to meet international travel demand. Adjusted earnings per share for the third quarter were $3.33, surpassing both Wall Street forecasts and the airline’s own estimates.
Executives will address analysts during a call to discuss year-end demand, projections for 2025, and production challenges at Boeing due to a machinist strike.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
