United expects to close out the year on a high note.
In an earnings report released Wednesday, the carrier forecast fourth-quarter adjusted earnings of between $3 and $3.50 per share, which would improve on an already-strong $2.78 per share in Q3. The carrier’s Q4 projection is well above industry expectations, which averaged out to about $2.86 per share.
United also said that if momentum from the third quarter continues through the next three months, the airline could deliver the highest total operating revenue for a single quarter in its history.
United’s leaders based their prediction on several favorable trends, including rising demand for luxury travel, a segment the airline has worked hard to capture. The industry is also rolling back capacity, creating a more favorable pricing environment for carriers.
In a statement, United CEO Scott Kirby pointed to a series of long-term investments, some begun almost a decade ago, that are now bearing fruit both for United’s customers and its bottom line. These include the widescale installation of seatback screens, the opening of a fourth United Club location in Denver, and the rollout of United Polaris lie-flat seats.
Kirby said the improvements have helped grow the airline’s pool of brand-loyal customers despite volatility in the broader economy this year.
United on Wednesday posted operating revenue of $15.2 billion and net income of $949 million for the third quarter. Year-over-year, premium cabin revenue rose 6%, basic economy revenue increased by 4%, and loyalty revenue climbed 9%.
