United Airlines Announces $1.5 Billion Share Buyback and Forecasts Fourth-Quarter Earnings Above Expectations

• United Airlines' third quarter revenue and earnings topped Wall Street estimates.
• Since before the pandemic, the airline has announced its first buyback of $1.5 billion worth of shares.
• United's fourth-quarter earnings estimates came in above analysts' forecasts.

The airline announced a $1.5 billion share buyback on Tuesday after reporting higher-than-expected earnings for the summer travel season and forecasting strong results for the final three months of the year.

In the fourth quarter, United anticipates earning an adjusted $2.50 to $3 a share, which is higher than the $2 a share earned in the previous year and the $2.68 analysts predicted.

Based on average estimates compiled by LSEG, what Wall Street expected for the third quarter was different from what United reported.

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

Since the pandemic, United Airlines has not engaged in a share buyback, despite receiving more than $50 billion in government aid to maintain financial stability.

announced a $2.5 billion share repurchase program last month.

"United CEO Scott Kirby announced a strategic share repurchase program, similar to other leading airlines and companies, while emphasizing his commitment to investing in people and the business, even during this initiative."

In the third quarter, United generated $14.84 billion in revenue, representing a 2.5% increase from the previous year and surpassing analyst predictions. However, its net income decreased by 15% compared to the previous year to $965 million.

Airlines cut back on flights in August and September, resulting in a rise in domestic unit revenue compared to the previous year.

In July, United predicted earnings per share of $2.75 to $3.25, but Wall Street forecasts were exceeded when the company reported earnings of $3.33 per share.

On Wednesday at 10:30 a.m. ET, airline executives will meet with analysts and may be asked about year-end demand and 2025 projections, as well as production issues at , where most factories have been shut down for over a month due to a machinist strike.

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