United Airlines reported a profit of $ 473 million in the third quarter, thanks to more than $ 1 billion in federal pandemic aid that helped pay airline employees this summer.
The airline said on Tuesday that bookings began to stabilize last month as the surge in COVID-19 cases eased.
Still, Chicago-based United Airlines said it will have 25% to 30% lower revenues in the fourth quarter than it did during the same period in 2019, as it operates fewer flights than it did before the pandemic. The cost will increase from seat to seat.
United usually makes a lot of money from business and travel abroad, but both are terribly depressed. United and its closest rivals, American Airlines and Delta Air Lines, hope to get boost from the U.S. government’s decision to ease restrictions on foreign vaccinated travelers on November 8. ..
United announced last week that it will expand its transatlantic services next year, adding destinations it has never served at outposts on the islands of Jordan, Norway, Spain and Portugal. United is urging foreign governments to reopen seven routes to Europe and Asia that were interrupted during the pandemic.
Domestic leisure travel has almost returned to pre-pandemic levels. As a result, United announced this month that it is planning the largest domestic flight schedule since March 2020 to accommodate the expected surge in vacation travel.
United’s third-quarter profit was $ 473 million, compared to a loss of $ 1.84 billion last year and a profit of $ 1.02 billion in the third quarter of 2019.
United said it lost $ 1.02 per share, except for special items such as federal aid. According to FactSet research, this was better than analysts expected. The loss was $ 1.58 per share.
Revenues were $ 7.75 billion, about $ 110 million higher than analysts expected, but 32% lower than the same period in 2019.
Last week, Delta reported a $ 1.2 billion profit in the third quarter, but warned that rising fuel prices and labor costs would lead to “small” fourth-quarter losses.
United forecasts non-fuel costs to increase by 12% to 14% per seat in the fourth quarter. This is about twice the increase Delta predicted. Airlines are struggling to hire more pilots, flight attendants and other workers in a reversal last year when airlines were spending a lot of cash and urging employees to resign.
United officials declined to comment on the report until a conference call was held with analysts and reporters on Wednesday.
United Airlines Holdings shares rose 1% in the first few minutes of the extended transaction after the release of the financial report. They ended their regular session at $ 46.22, down 2%.
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David König can be reached at http://www.twitter.com/airlinewriter
United posted $ 473 million in third-quarter profit on federal pandemic aid | WGN Radio 720
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