United reported second-quarter earnings that exceeded Wall Street’s expectations, with adjusted earnings per share of $4.14 compared to the expected $3.93, and revenue totaling $14.99 billion, just below the estimated $15.06 billion. The airline saw a 5.7% increase in revenue compared to the previous year, showcasing growth despite falling slightly short of projections. United also reiterated its full-year forecast for adjusted earnings of $9 to $11 per share.
Despite the challenges faced by the airline industry due to increasing U.S. domestic capacity impacting airfares, United and Delta Air Lines have stood out as top performers. Both airlines have capitalized on international flight demand post-pandemic, in addition to offering premium services such as larger lounges and spacious seats to cater to passengers willing to pay more. United’s premium revenue grew by over 8% from the previous year, with an increase of 38% in sales of basic economy tickets, reflecting a diverse approach to serving various market segments.
United’s strategic expansion included a 5% increase in domestic flights compared to the previous year, with a slight decrease in unit revenues. Yields on flights to and from Europe rose by more than 5%, showcasing growth in a key market segment for the airline. Looking ahead, CEO Scott Kirby highlighted plans to moderate supply by mid-August, aligning United’s strategy with anticipated industry trends as competitors like Spirit Airlines, Southwest Airlines, and American Airlines adjust their forecasts in response to market conditions.