A United Airlines Boeing 757 departs from New York on September 19, 2024 from Los Angeles International Airport N Route.
Kevin Carter | Getty images
United Airlines‘The second quarter earnings defeated estimates and its CEO said the demand for travel was growing by 2025 after a rocky start.
Demand for travel, especially more Price-sensitive customer For domestic flights, the airline was weakened compared to the expected airline authorities at the beginning of the year, which was sent less.
CEO Scott Kirby said, “The world is less uncertain than today during the first six months of 2025 and this gives us confidence about a strong finish for the year.”
rival Delta air lines Last week restored it Full year’s forecastWhich was less than its expectation at the beginning of the year. Airlines like Delta and others have said that they plan to cut capacity after the peak summer travel season, which ends in mid -August.
What reported by United Airlines here for the quarter that ended on June 30, which was expected of Wall Street, based on estimates compiled by LSEG:
- earnings per share: $ 3.87 cents adjusted vs $ 3.81 expected
- Income: $ 15.24 billion vs $ 15.35 billion is expected
The second quarter revenue of United rose 1.7% to $ 15.24 billion from a year ago, expected by $ 15.35 billion analysts. The net income declined by 26% to $ 973 million, or $ 2.97 per share. Adjustment to one -time items, United reported $ 1.27 billion, or $ 3.87 per share.
The unit revenue fell 4% in the quarter. The decline in domestic passenger revenue per seat was pronounced, which fell 7% from year to year. International revenue has been a bright place for the airlines, but there were some evidence of weak pricing power, with United’s Europe Unit’s revenue below 2.2% in a year.
Premium revenue was 5.6% compared to last year, a sign that continues to pay for customers More comfort on boardWhile the sale of the basic-economy class was 1.7% year-on-year.
United hopes to post an adjusted income between $ 9 and $ 11 per share in 2025 in 2025, which was expected by $ 10 share analysts. Amidst economic uncertainty in this spring, united took unusual steps in April Release two earning landscape– $ 11.50 to $ 13.50 a part in a stable environment and $ 7 and $ 9 a part in a “recession environment”.
For the third quarter, United expected an adjusted income of $ 2.25 and $ 2.75 per share within the expectations of analysts.
The carrier stated that a prominent United Hub, operating hurdles at the Newark Liberty International Airport, hit his second quarter pretax margin with 1.2 points this year and estimated the impact of the third quarter of 0.9.
Federal aviation administration in May Cut flights to Newark Due to lack of air traffic controller staffing and other issues.
American Airlines And Southwest Airlines The next week is scheduled to report results.
