United Airlines announced that travel demand has increased since the beginning of July as a result of decreased macroeconomic and geopolitical concerns. However, the Chicago-based airline anticipates that operational issues at Newark Airport, which is one of its biggest hubs and one of the busiest in the nation, could hurt its profitability this quarter.
Share Report of United Airlines
In comparison to the previous quarter, United recorded a double-digit increase in business reservations and a 6-percentage point increase in total travel demand in the third quarter.
Consequently, it now projects that its adjusted profit for the entire year will be between $9 and $11 per share. That contrasts with the $10.04 per share that analysts had predicted.
United CEO Scott Kirby said in a statement:
“The world is less uncertain today than it was during the first six months of 2025, and that gives us confidence about a strong finish to the year.”
After-hours trading saw a 1.6% decline in United’s stock as the company’s third-quarter earnings forecast fell short of Wall Street projections.
For the quarter ending at the end of September, the business anticipates an adjusted profit between $2.25 and $2.75 per share. Based on LSEG data, the forecast’s midpoint is $2.50 per share, while the analysts’ average expectation is $2.60.
It estimates a hit of 0.9 percentage points in the third quarter, compared with a 1.2 percentage point impact in the second quarter, due to the operational issues at Newark airport.
In April, United took the unusual step of offering two different earnings forecasts as U.S. President Donald Trump’s trade war dented consumer and business confidence, making it harder for carriers to predict their business.
Citi reiterates a Buy rating on the airlines.
Following the airline’s Q2 earnings, Citi has reaffirmed its Buy rating and $106.00 price target for United Airlines (NASDAQ: UAL), which is now trading at $88.47 with a market capitalisation of $28.89 billion. The business consistently maintains a “GREAT” overall financial health score, according to InvestingPro statistics.
Citi maintained its positive stance on the airline, keeping both its Buy rating and $106.00 price target unchanged following the earnings report.
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