{"id":2552,"date":"2018-07-23T08:57:56","date_gmt":"2018-07-23T13:57:56","guid":{"rendered":"http:\/\/planesintheair.com\/?p=2552"},"modified":"2018-07-23T09:57:47","modified_gmt":"2018-07-23T14:57:47","slug":"united-airlines-raises-profit-forecast","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=2552","title":{"rendered":"United Airlines Raises Profit Forecast"},"content":{"rendered":"

* Q2 adjusted profit tops estimates<\/span><\/p>\n

* Q2 revenue up 7.7 pct<\/span><\/p>\n

* Shares rise 4.2 pct after the bell (Compares with estimates, updates shares)<\/span><\/p>\n

July 17 (Reuters) – United Airlines raised its profit forecast for 2018 on Tuesday, as average fares and traffic both rose and it trimmed capacity expansion in the face of soaring fuel costs.<\/span><\/p>\n

Shares of United rose as much as 4.2 percent in trading after the bell as the airline’s second-quarter profit also topped analysts’ estimates.<\/span><\/p>\n

The third-largest U.S. airline forecast adjusted profit for the full year at between $7.25 and $8.75 per share, up from its previous range of $7.00 to $8.50 per share.<\/span><\/p>\n

Bigger rivals Delta Air Lines Inc and American Airlines Group Inc have both cut their full-year earnings forecasts in light of rising oil prices.<\/span><\/p>\n

The Chicago-based carrier cut its plans for capacity growth for the year to a rate of between 4.5 percent and 5 percent, a company spokesman said. It had previously forecast a range of between 4.5 percent and 5.5 percent.<\/span><\/p>\n

The company said net income fell to $684 million, or $2.48 per share, in the quarter ended June 30 from $821 million, or $2.67 per share, a year earlier, hit by an already-flagged $105 million write-down of the value of its Brazil routes.<\/span><\/p>\n

On an adjusted basis, the airline earned $3.23 per share, beating analysts’ estimates of $3.07, according to Thomson Reuters I\/B\/E\/S.<\/span><\/p>\n

Total operating revenue rose 7.7 percent to $10.78 billion, while average fares rose 1.5 percent.<\/span><\/p>\n

Fuel costs, which accounted for a quarter of United’s total costs, surged 43.2 percent, reflecting a steep rise in crude oil prices since early 2016.<\/span><\/p>\n

United said it paid $2.26 per gallon for aircraft fuel on average, up from $1.63 a year earlier.<\/span><\/p>\n

Shares of the airline have risen 7.7 percent this year, compared with a 13.9 percent fall in the S&P 500 Airlines index .<\/span><\/p>\n

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D’Silva)<\/span><\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

* Q2 adjusted profit tops estimates * Q2 revenue up 7.7 pct * Shares rise 4.2 pct after the bell (Compares with estimates, updates shares) July 17 (Reuters) – United Airlines raised its profit forecast for 2018 on Tuesday, as average fares and traffic both rose and it trimmed capacity expansion in the face of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[797,89,868,1103],"tags":[629,118,116,630,180,1324,1323,628,444],"class_list":["post-2552","post","type-post","status-publish","format-standard","hentry","category-airline-news","category-aviation-news","category-transportation-news","category-travel-news","tag-aal","tag-airlines","tag-american","tag-dal","tag-delta-air-lines","tag-forecast","tag-profit","tag-ual","tag-united"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/2552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2552"}],"version-history":[{"count":1,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/2552\/revisions"}],"predecessor-version":[{"id":2554,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/2552\/revisions\/2554"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}