United Airlines to buy back $1.5B in shares, ups Q4 outlook

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• UAL

United Airlines announced a $1.5 billion share buyback after reporting better-than-expected earnings for summer travel. Shares surged nearly 13%, reaching $72.02, the highest since February 2020. Other airlines also saw significant gains.

Revenue from U.S. flights increased in August and September as airlines reduced excess flights to stabilize prices. United forecasts fourth-quarter earnings between $2.50 and $3.00 per share, compared to $2.00 a year ago.

In the third quarter, United expanded capacity by 4.1%. Revenue grew to $14.84 billion, outperforming expectations, even with a net income drop of 15% to $965 million.

• Adjusted EPS: $3.33 vs. $3.17 expected
• Revenue: $14.84 billion vs. $14.78 billion expected

This marks United’s first share buyback since the pandemic, following over $50 billion in government aid. Southwest Airlines recently announced a $2.5 billion buyback program.

CEO Scott Kirby emphasized that investing in staff remains a priority alongside this plan. However, United’s flight attendants’ union criticized this decision, reminding that these funds should benefit the workers who maintained operations during the pandemic.

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