United Airlines predicts strong Q4 profit driven by premium travel demand

CHICAGO (Reuters) -United Airlines on Wednesday forecast a higher-than-expected profit in the fourth quarter on the back of robust demand for premium travel and improved pricing power. The Chicago-based airline expects an adjusted profit in the range of $3.00 a share to $3.50 per share in the quarter through December. The midpoint of the forecast is $3.25 per share, compared with analysts' average estimate of $2.86, according to LSEG data. United's third-quarter adjusted profit came in at $2.78 a share, topping analysts' expectations of $2.63 a share. Its earnings report comes barely a week after rival Delta Air Lines forecast record earnings in the December quarter. Both United and Delta have consistently outperformed the broader airline industry since the pandemic by focusing on high-margin revenue streams that tap into the financial strength of premium, corporate, and international travelers. This has led to a growing divide in the earnings of U.S. carriers. While Delta and United are generating most of the industry's profits, more domestic-focused, budget-oriented carriers are grappling with softer demand and greater pricing pressure. United generated $15.2 billion in revenue in the third-quarter, an increase of 2.6% from a year ago. Its premium revenue was up 6%, while loyalty revenue grew 9%. (Reporting by Rajesh Kumar Singh; Editing by Chris Reese)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)