United Airlines Raises Profit Outlook to $9-$11 per Share.

United Airlines has raised its profit forecast for the year, expecting full-year adjusted earnings of $9 to $11 per share. This increase in forecast is a positive signal for the airline industry, indicating a recovery from the COVID-19 pandemic. The airline's new profit outlook is a result of strong demand and higher fares, as well as cost-cutting measures implemented during the pandemic.

United Airlines (UAL) has recently raised its full-year profit forecast, projecting adjusted earnings of $9 to $11 per share. This upward revision signals a robust recovery for the airline industry, driven by strong demand and higher fares, alongside cost-cutting measures implemented during the COVID-19 pandemic.

The airline's improved outlook comes on the heels of mixed second-quarter results, where adjusted gross margin was negatively impacted by disruptions at Newark Liberty International Airport. Despite these challenges, United Airlines reported a profit of $3.87 per share, down from $4.14 in the same quarter last year, but 6 cents better than expected [2].

Looking ahead, the airline anticipates continued disruptions at Newark airport to affect profitability in the current quarter. However, United Airlines expects full-year earnings to be between $9 to $11 per share, surpassing the consensus estimate of $10.14 per share [2].

The airline's growth is being fueled by premium cabin revenue, which increased by 5.6% year-over-year, while basic economy revenue grew by a more modest 1.7%. Overall domestic revenue, which includes both premium and basic segments, decreased by 0.7% [2].

United Airlines' cost per available seat mile (CASM) increased by 0.6% during the quarter, with a further increase of 2.2% excluding fuel costs. Capacity was up by 5.9%, but total revenue per available seat mile (TRASM) fell by 4% from a year ago [2].

The improved forecast for United Airlines is a positive indicator for the broader airline industry. The U.S. Global Jets ETF (JETS) saw a modest decline in after-hours trading, but the overall sector remains cautiously optimistic about the recovery.

References:
[1] https://www.statista.com/topics/4043/united-airlines/
[2] https://seekingalpha.com/news/4467803-united-airlines-reports-mixed-q2-results-as-newark-disruptions-weigh-on-profit-margin