UAL's Q3 was mixed: EPS missed estimates, revenue was slightly below expectations, and costs are growing faster than revenue; it is less secure than Delta. It is unclear whether UAL can recoup higher fuel costs and keep profitability. Q4 EPS guidance is a wide 50 cents to $1.50.
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Let's go to Marley with the numbers from United Airlines' third-quarter report. As the information comes in via Sam, it appears that it's a mixed picture for United.
Earnings per share (EPS) stood at 254 in the third quarter. The expectation was 261, so they failed to meet that goal. Revenue stands at 17.98 billion. This is in line with the expected 17.91 , perhaps slightly lower.
They say their capital expenditure (CapEx) has increased by 46% to 2.14 billion compared to last year. The amount of seat miles available this quarter stood at 88.54 billion. The estimate was 88.74 billion.
Passenger revenue amounted to 16.24 billion. The market was expecting 16.3 billion. Passenger miles flown in the third quarter were 74.28 billion. The estimate was 74.91 billion, so this is also slightly less than that.
They say their third- quarter energy costs increased by $1.8 billion overall. For the fourth quarter, they are looking at earnings per share (EPS) between 50 cents and $1.50, which is a pretty wide range, but this range completely exceeded market estimates, which were expecting $1.88.
So now their share price is falling. If we review these numbers, we see that we are down about 2.4 %.
United was expected to be one of the best performers in terms of customer demand among airlines overall , but the situation is pretty much a mixed picture.
It is not as secure as Delta. So the big question was whether they would be able to recoup some of this increased fuel cost. Will they be able to maintain their profitability, where yes, revenue is growing overall, although it may be less than projected , but costs are growing even faster.
And United Airlines' share price fell by nearly two and a third as it missed earnings per share (EPS) expectations and revenue came in slightly below expectations.
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