United Airlines Holdings Inc. reported a third-quarter profit of $949 million, or $2.90 per share, surpassing Wall Street expectations of $2.64 per share. Adjusted earnings, excluding non-recurring items, were $2.78 per share.
The airline’s revenue for the quarter was $15.23 billion, slightly below analyst forecasts of $15.3 billion. Despite the revenue miss, United’s performance reflects a strengthening travel demand. CEO Scott Kirby highlighted the importance of building brand loyalty to maintain resilience during economic downturns.
The company plans to invest an additional $1 billion in customer experience enhancements, including upgraded airport lounges, Starlink internet service, and new in-flight entertainment features. Looking ahead, United forecasts adjusted earnings between $3.00 and $3.50 per share for the December quarter, driven by strong travel demand and increased pricing power.
However, the ongoing U.S. government shutdown poses a risk to consumer confidence in air travel, potentially impacting bookings and flight operations. The shutdown has worsened an existing shortage of air traffic controllers, causing delays in some cities. United’s stock experienced a 6% decline following the earnings report, reflecting investor concerns over the potential impact of the government shutdown on the airline’s operations.