CHICAGO (AP) — United Airlines on Tuesday reported third-quarter profits fell 15% from a year earlier, but revenue trends improved as the low-fare airline scaled back its growth plans for the rest of the year.
Meanwhile, the Chicago-based airline’s directors approved up to $1.5 billion in stock buybacks. United’s stock buyback program is the first since 2020, when airlines were prohibited from buying back their own stock as a condition of receiving pandemic aid from the federal government.
United Airlines said corporate travel, premium economy travel and no-frills basic economy travel were doing even better through September.
Airline executives are frustrated that low-cost airlines are lowering the price of economy class seats because of an oversupply of flights. But pricing power is increasing as companies like Spirit and Southwest adjust their schedules and sell fewer seats.
United Airlines said revenue per seat, a closely watched number, rose year over year in August and September on U.S. flights after being below 2023 levels in previous months. announced that it had turned positive.
United Airlines’ third-quarter profit was $965 million, down from $1.14 billion a year earlier. The company reported adjusted earnings excluding special items of $3.33 per share, beating the average analyst estimate of $3.17, according to FactSet.
Revenue rose 2.5% to $14.84 billion, beating the average analyst estimate of $14.77 billion.
United Airlines’ fourth-quarter earnings are expected to be between $2.50 and $3 per share, in line with analysts’ average estimate of $2.76 per share.
