United Airlines (UAL) reported a third quarter earnings beat and upbeat forward guidance, a week after rival Delta (DAL) saw premium and business travelers boost its results.
Chicago-based United posted operating revenue of $15.2 billion versus $15.28 billion, per Bloomberg consensus, a slight miss but up 3% compared to a year ago. United posted adjusted earnings per share (EPS) of $2.78 versus $2.66 estimated, with available seat miles coming in at 87.42 billion versus the 86.51 billion expected. The highly watched metric of passenger revenue per available seat mile (PRASM) came in at $73.77 billion versus $72.71 billion estimated.
Looking ahead, United forecast Q4 adjusted EPS in the $3.00 to $3.50 range, topping the $2.82 estimated. United said on the earnings call that it sees its full-year EPS range in the “better half” of the $9.00 to $11.00 range, and it sees margins expanding a point or more each year, normalized for any unusual macroeconomic activity.
United stock fell over 3% in early trading on Thursday, though reversed higher during the earnings call on commentary concerning growing the airline’s margins.
Read more: Live coverage of corporate earnings
“We’ve invested in customers at every price point: Seatback screens, an industry-leading mobile app, extra legroom, a lie-flat United Polaris seat, and fast, free, reliable Starlink on every plane by 2027. Our customers value the United experience, making them increasingly loyal to United,” CEO Scott Kirby said in a statement.
“Those investments over almost a decade, combined with great service from our people, have allowed United to win and retain brand-loyal customers, leading to economic resilience even with macro economic volatility through the first three quarters of the year and significant upside as the economy and demand are improving in the fourth quarter,” he added.
Read more: Best rewards credit cards for 2025 to earn cash back, points, and miles
United said premium cabin revenue rose 6% year over year in Q3, with revenue from Basic Economy rising 4% year over year and loyalty revenue up 9% year over year.
Last week, Delta said a “significant improvement” in its revenue outlook led the airline to tighten its outlook to the upper bounds of its projection, with its premium business up 9% and corporate sales up 8%.
Despite the good second quarter, United was plagued by operational issues earlier this year at one of its largest hubs, Newark Liberty Airport in New Jersey.
Last month, United said its Newark flights matched LaGuardia and JFK airports in the New York City area for on-time performance. Earlier this spring, Newark experienced staffing shortages and air traffic control issues that caused serious delays and, in some cases, led to complete outages of the air traffic control system for brief periods.
