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United Continental flies past analyst estimates in its second-quarter results, raises outlook

While Delta and American Airlines slash forecasts, United is increasing its guidance

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The airline operates around 4,600 flights per day

United Continental Holdings Inc (NYSE:UAL) announced its second-quarter results, surpassing analyst estimates and raising its yearly outlook.

The airline reported earnings of US$3.23 per share on revenue of US$10.78bn compared with US$2.76 on revenue of US$10.01bn in the previous year’s second quarter.

The Chicago-based company beat Wall Street estimates of US$3.07 EPS on revenue of $10.72bn.

“These results are the strongest evidence yet that our strategic growth plan is working, and we are well positioned to carry our momentum into the second half of the year,” said CEO Oscar Munoz in a press release.

The airline forecast adjusted profit for the full year to be between US$7.25 and US$8.75, an increase from its previous range of US$7 to $8.50.

In contrast, Delta Air Lines (NYSE:DAL) and American Airlines Group Inc (NASDAQ:AAL) have slashed their outlooks due to rising fuel costs.

The company recently announced that it would buy four new 787-9 widebody jetliners from Boeing Company in a US$1.1bn deal, according to a Reuters report.

The airline is looking to update its fleet with more efficient planes. The newer jets use around 20% less fuel than older jets.

United also placed another US$1.1bn order for 25 new E-175 planes from Brazil’s Embraer SA for its United Express service, as per a Reuters report.

The airline operates around 4,600 flights per day across five continents, making stops in 357 airports.

Shares of the airline were up nearly more than 2% to US$73.88 in Tuesday after-hours trading.

Quick facts: United Continental Holdings

Price: 88.59 USD

NYSE:UAL
Market: NYSE
Market Cap: $22.42 billion
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