United Airlines (UAL.O), opens new tab forecast a stronger-than-expected profit in the current quarter on Tuesday, after third-quarter earnings topped Wall Street expectations on improved pricing power.
In a sign of growing confidence in its business, the Chicago-based airline also announced a $1.5 billion share buyback program – its first since the COVID-19 pandemic.
United said it expects an adjusted profit of $2.50 to $3 per share in the quarter through December. Analysts expect the company to report a quarterly profit of $2.68 a share, according to LSEG data.
United reported adjusted third-quarter earnings of $3.33 a share, compared with analysts’ expectations of $3.17.
Its shares were down about 0.2% in after-hours trading.
The airline said its domestic unit revenue, a proxy for pricing power, turned positive in August and September from a year ago.
An excess supply of airline seats in the domestic market during the summer travel season had forced carriers to discount fares, hurting their earnings…
