United Airlines Holdings Inc (NASDAQ:UAL) stock rose in pre-market trade after it reported what it called a “record-setting” second-quarter performance after the closing bell on Wednesday.
The airline reported record adjusted earnings per share (EPS) of $5.03 for the quarter to June 30, 2023, up from $1.43 a year earlier, as capacity improved by 17.5%.
Total operating revenue rose 17% year-over-year to $14.2 billion while operating income for the period jumped 73% to $1.52 billion. Its operating margins improved to 10.7% from 7.2%, with an adjusted operating margin of 16.8%, up from 8.2%.
Following the strong quarter, it revised up its full-year guidance to include adjusted EPS of $11 to $12, from $10 to $12 previously.
Additionally, it said it was able to accelerate its efforts to restore its balance sheet back to 2019 levels.
Also returning to 2019 levels were its domestic margins, while its international margins were well above 2019, the airline noted.
"The United team persevered through an unprecedented series of events at the end of last month. They are the best in the business and we're focused on the important changes we can make, especially in Newark, to serve our customers even better,” commented CEO Scott Kirby in a statement.
"United's financial performance in the second quarter and our outlook for the remainder of the year and beyond make it clear that United Next is working and is the right strategy at the right time. Our focus now is on executing that strategy well – because we know it will deliver huge benefits for our customers, our employees and our owners."
The airline’s shares were 3% up at $56.43 ahead of the market opening.
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