FX.co ★ United Airlines Q3 Profit Tops Estimates; To Buy Back Up To $1.5 Bln Of Shares

United Airlines Holdings Inc. (UAL) announced a decline in its third-quarter net income, which dropped to $965 million, or $2.90 per share, from $1.14 billion, or $3.42 per share, in the same period last year. When adjusted, income for this quarter was reported at $1.11 billion, or $3.33 per share, compared to $1.21 billion, or $3.65 per share, from the previous year. These figures came in ahead of analyst expectations, as surveyed by Thomson Reuters, who predicted earnings of $3.17 per share. It's important to note that these estimates generally exclude special items.

For the third quarter, UAL's total operating revenue experienced a rise, reaching $14.84 billion compared to $14.48 billion in the prior year. The analysts had anticipated revenue of $14.78 billion for this quarter. In terms of capacity, there was a 4.1% increase over the third quarter of 2023.

Furthermore, the company's Board of Directors has approved a new share repurchase program, allowing for the buyback of up to $1.5 billion in outstanding common stock shares and warrants initially issued to the U.S. Treasury under the CARES Act and Payroll Support Program. However, this is capped at $500 million collectively through the end of 2024.

On Tuesday, UAL's stock concluded regular trading at $64.05, reflecting an increase of $0.52, or 0.82%. In after-hours trading, the stock saw an additional climb of $0.39, or 0.61%.