United Airlines (UAL) Q3 2024 results

United Airlines said Tuesday it is beginning a $1.5 billion share buyback, as the airline reported higher-than-expected profits for the busy summer travel season and forecast strong results for the final three months of the year.

United expects to post fourth-quarter adjusted earnings of $2.50 to $3.00 per share, compared with $2.00 per share a year ago and an estimate of $2.00 per share from analysts surveyed by LSEG. $68.

Here's what United reported for the third quarter compared to Wall Street's expectations, based on average estimates from LSEG:

• Earnings per share: $3.33 adjusted vs. $3.17 expected
• Revenue: $14.84 billion versus expected $14.78 billion

The share buyback would be United's first since before the Covid-19 pandemic. U.S. airlines received more than $50 billion in government aid during the pandemic-related travel downturn, which banned stock buybacks and dividends, even as airlines still struggled for financial stability.

Southwest Airlines announced a $2.5 billion share repurchase program last month.

“Like other leading airlines and companies, we are embarking on a measured, strategic share repurchase program,” United CEO Scott Kirby said in a note to employees on Tuesday. “I commit to you that investing in our people and our company will always be my top priority, even as we implement this share repurchase program.”

In the third quarter, United reported revenue of $14.84 billion, up 2.5% from a year earlier and above analysts' estimates. Net income was $965 million, down 15% year over year.

United said revenue from domestic units in August and September was positive compared to a year ago as airlines reduced an oversupply of flights, resulting in lower prices. United expanded capacity by 4.1% in the third quarter. The airline said corporate revenue increased 13% in the quarter; Premium revenue, including business class tickets, increased 5%; and sales of basic, no-frills economy tickets increased by 20%.

Last week, the airline unveiled a sweeping expansion for next year that includes new flights to Mongolia, Senegal, Spain and Greenland to meet international travel demand.

Adjusted for one-time items, United reported earnings per share of $3.33, beating Wall Street forecasts and United's July estimate of $2.75 to $3.25 per share.

Airline executives will hold a call with analysts at 10:30 a.m. ET on Wednesday and are likely to ask questions about demand for the end of the year and into 2025, as well as production issues Boeingwhere most factories were at a standstill during a machinists' strike that lasted more than a month.