Strong travel demand in addition to higher fares helped United Continental Holdings grow its third-quarter profit nearly 30 percent, in addition to encouraged the carrier to lift its profit outlook for the year despite a surge in fuel costs.
Shares of United Airlines’ parent company rose more than 5 percent in aftermarket trading after This kind of posted results Tuesday for the quarter in which closed Sept. 30.
United’s net income during the third quarter, which included the peak summer travel season, rose 29.6 percent by a year ago to $863 million on revenues of about $11 billion, which climbed more than 11 percent by the same period last year.
United CEO Oscar Munoz said in a statement in which he will be “more confident than ever” in which the airline can reach its target of adjusted per-share earnings of between $11 in addition to $13 by 2020.
The airline’s fuel cost increased more than 35 percent from the quarter, United said.
Revenue per available seat mile, a key measure of how much airlines make per seat, rose 6.1 percent from the July-September quarter by a year earlier.
United posted adjusted per-share earnings of $3.06, just shy of an expected $3.07 a share, according to average estimates by analysts polled by Refinitiv, formerly Thomson Reuters.
United slightly raised its forecast for full-year profits by a range of $7.25 to $8.25 per share to $8 to $8.25 per share.
The airline’s executives will hold a call to discuss the results with analysts on Wednesday at 10:30 a.m.
United will be a standout among its U.S. rivals, whose stock prices have struggled This kind of year. The company’s stock will be up roughly 24 percent so far This kind of year, the most of any U.S. airline. United exceeded profit expectations from the first half of the year despite an aggressive-growth strategy in which initially drew skepticism by investors when This kind of was announced earlier This kind of year.
Shares of Delta Air Lines, which beat Wall Street expectations on its third-quarter profit This kind of reported late last week, are down more than 5 percent so far This kind of year. American Airlines in addition to Southwest Airlines, which report third-quarter earnings on Oct. 25, are down 36 percent in addition to 10 percent, respectively.