Benzinga - by Adam Eckert, Benzinga Staff Writer.
United Airlines Holdings Inc (NASDAQ: UAL) shares are trading lower in Tuesday's after-hours session on the heels of the company's third-quarter results. Here's a rundown of the report and a look at what's driving the action.
Q3 Key Metrics: United said total operating revenue in the third-quarter increased 12.5% year-over-year to $14.48 billion, which beat the consensus estimate of $14.44 billion, according to Benzinga Pro. The company reported adjusted quarterly earnings of $3.65 per share, which beat estimates of $3.39 per share.
Capacity was up 15.7% year-over-year. Total revenue per available seat mile was down 2.8%; costs per available seat mile were down 3.6%, but 2.6% higher excluding fuel. Average fuel price per gallon was $2.95 during the quarter.
United said it had the highest daily average of revenue passengers ever carried in a quarter at more than 482,000 passengers.
“Our strategy to diversify our revenue streams, capitalize on growth opportunities and constantly innovate to enhance our products for our customers is paying off. Our United Next strategy is working and we remain on track to hit our financial targets," said Scott Kirby, CEO of United Airlines.
Q4 Outlook: United sees fourth-quarter earnings of $1.50 to $1.80 per share and revenue up 9.5% to 10%, depending on how long Tel Aviv flights are suspended.
If flights are only suspended through October, the company anticipates results to come in at the high end of the provided ranges, but if suspended until the end of the year, United said it expects fourth-quarter numbers to be near the low end of the provided ranges.
The uncertain guidance appears to be the reason for the selling pressure on shares after the close. Management will hold a conference call to discuss these results at 10:30 a.m. ET Wednesday.
Did You See This? United Airlines Gears Up For Q3 Print; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
UAL Price Action: United Airlines shares were down 4.71%% after hours at $38.18 at the time of publication, according to Benzinga Pro.
Photo: courtesy of United Airlines.
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