United Airlines Holdings Inc (NASDAQ:UAL, ETR:UAL1) reported third quarter earnings that topped Wall Street expectations, supported by cost control and operational efficiencies, while revenue narrowly missed estimates.
The airline reported revenue of $15.23 billion, missing the consensus estimate of $15.28 billion by $50 million, but representing a 2.6% year-over-year increase.
Passenger revenue totaled $13.82 billion, about $90 million below expectations, while cargo revenue of $431 million was roughly $1 million short of forecasts.
Other revenue, however, exceeded estimates at $979 million, beating by more than $42 million.
United reported diluted earnings per share (EPS) of $2.90 and adjusted diluted EPS of $2.78, topping the company’s guidance range of $2.25 to $2.75.
Operationally, revenue passenger miles rose to 73.77 billion and available seat miles reached 87.42 billion, both slightly ahead of estimates.
The load factor of 84.4% fell short of expectations by 0.8 percentage points, while the average fuel price of $2.43 per gallon came in marginally above forecasts.
Premium cabin revenue increased 6% year-over-year, Basic Economy rose 4%, cargo gained 3%, and loyalty program revenue advanced 9%.
United carried more than 48 million passengers during the quarter, a company record, and achieved its lowest third-quarter cancellation rate in history. Six of its seven hubs ranked first or second for on-time departures.
“Our customers value the United experience, making them increasingly loyal to United,” CEO Scott Kirby said in a statement.
“Those investments over almost a decade, combined with great service from our people, have allowed United to win and retain brand-loyal customers, leading to economic resilience even with macroeconomic volatility through the first three quarters of the year.”
Shares of United edged down 0.4% before Thursday’s opening bell.