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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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