Shares of United Airways (NASDAQ: UAL) turned crimson in noon commerce on Wednesday. The inventory has gained 11% over the previous three months. The airline is scheduled to report its second quarter 2024 earnings outcomes on Wednesday, July 17, after markets shut. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $15.1 billion for United within the second quarter of 2024, which might symbolize a rise of over 6% year-over-year. Within the first quarter of 2024, working income elevated practically 10% YoY to $12.5 billion.
Earnings
United has guided for adjusted EPS of $3.75-4.25 in Q2 2024. The consensus estimate is $3.99, which compares to adjusted EPS of $5.03 reported in the identical interval a 12 months in the past. In Q1 2024, the corporate reported an adjusted lack of $0.15 per share.
Factors to notice
United’s second quarter outcomes are anticipated to profit from robust demand for air journey, notably robust summer season journey in addition to continued enchancment in enterprise journey. In Q1, United’s passenger income grew 10% YoY whereas unit income was up 0.6%. Passenger income per out there seat mile (PRASM) was up 1%. Managed company journey was up 14%.
Final quarter, the corporate noticed an increase in home PRASM whereas worldwide PRASM noticed a decline. Latin American PRASM was down practically 13%. The Atlantic area noticed progress in PRASM whereas the Pacific area noticed a drop.
On its final quarterly name, United mentioned that for the second quarter, it was seeing robust home and Atlantic demand with constructive PRASM outcomes, tempered by the Pacific the place it expects a adverse consequence YoY. The corporate additionally expects Latin America to have a materially adverse PRASM consequence YoY in Q2.
The challenges attributable to the Boeing fleet weighed on United’s profitability final quarter. The uncertainty created by the Boeing MAX grounding and the delays to United’s plane deliveries have been pressuring bills, and the continued discount in capability from supply delays are anticipated to quickly strain prices by the 12 months. The impression of this might doubtless be seen within the second quarter as effectively.
On the identical time, United’s efforts in enhancing the journey expertise for purchasers by offering help by AI instruments and such capabilities in addition to its plans to broaden its routes are prone to show useful.
