United Airlines announces US$1.5 billion share buyback as earnings top estimates

Published Wed, Oct 16, 2024 · 06:47 AM

United's operating revenues rose by 2.5 per cent to around US$14.8 billion due to an increase in both passenger and cargo revenues. PHOTO: AFP

UNITED Airlines announced a US$1.5 billion share buyback on Tuesday as its earnings for the third quarter topped analyst estimates.

The US airline reported net income of US$965 million, down more than 15 per cent from the same period a year earlier. This translated to an adjusted diluted earnings per share of US$3.33 - above analyst estimates.

But operating revenues rose by 2.5 per cent to around US$14.8 billion due to an increase in both passenger and cargo revenues.

United’s share price rose slightly in after-hours trading.

“I appreciate the entire United team coming together to take care of our customers by operating a safe and on-time airline this summer,” United Airlines CEO Scott Kirby said in a statement.

“As predicted, unproductive capacity left the market in mid-August, and we saw a clear inflection point in our revenue trends that propelled United to exceed Q3 expectations,” he continued.

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Alongside its earnings, United also announced a new US$1.5 billion share repurchase programme - its first since the onset of the Covid-19 pandemic.

The firm said the buyback programme represents around 7 per cent of its market capitalisation, based on Monday’s closing stock price. AFP

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