United Airlines triples Q2 profits on strong demand

United Airlines triples Q2 profits on strong demand

United Airlines scored a tripling of quarterly profits in the second quarter of 2023 as international capacity surged
United Airlines scored a tripling of quarterly profits in the second quarter of 2023 as international capacity surged. Photo: Ed JONES / AFP/File
Source: AFP

PAY ATTENTION: Have you recorded a funny video or filmed the moment of fame, cool dance, or something bizarre? Inbox your personal video on our Facebook page!

United Airlines reported on Wednesday that second-quarter profits more than tripled, benefitting from robust travel demand and a surge in international capacity.

The big US carrier raised its full-year profit forecast following the better-than-expected results, even as total seat capacity lagged expectations for the period.

Profits were $1.1 billion compared with $329 million in the year-ago period, while revenues rose 17 percent to $14.2 billion.

International travel capacity jumped 27 percent compared with the year-ago level.

The results showed no financial hit from the difficulties that befell the company in the final week of the quarter at its Newark, New Jersey hub as bad weather in the New York area prompted thousands of flight cancelations at Newark and the other two New York area airports.

Read also

Goldman Sachs reports 62% drop in Q2 profits on low merger activity

But United, which had previously projected an 18.5 percent jump in capacity, instead reported a rise of 17.5 percent in the second quarter.

PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!

As the situation at Newark stabilized earlier this month, United Chief Executive Scott Kirby told employees in a memo that the carrier would reduce capacity at Newark to allow more flexibility in case of bad weather.

Kirby, who had blamed short staffing at the Federal Aviation Administration for exacerbating the Newark issues, alluded to the difficulties in United's earnings press release.

"The United team persevered through an unprecedented series of events at the end of last month," Kirby said. "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."

Shares rose 2.7 percent to $56.25 in after-hours trading.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.