United Airlines reports mixed third-quarter earnings report

Core Insights - United Airlines reported mixed earnings for its third fiscal quarter, with an earnings per share (EPS) of $2.78 on $15.2 billion in revenue, and pre-tax earnings of $1.3 billion, although revenue fell short of Wall Street expectations [1] - Analysts had projected an EPS of $2.64 to $2.60, with revenue estimates ranging from $15.3 billion to $15.38 billion [2] - Despite the lackluster revenue report, United expects the fourth quarter to achieve the highest total operating revenue in company history, driven by increases in premium cabin, basic economy, cargo, and loyalty revenue sources [3] Financial Performance - United Airlines' EPS of $2.78 exceeded analyst estimates, but revenue was below expectations [1][2] - For the full fiscal year, JPMorgan analysts estimate an EPS of $9.92 on revenue of $58.99 billion, and for fiscal year 2026, an EPS of $13.58 on revenue of $64.36 billion [5] Strategic Outlook - CEO Scott Kirby emphasized that customer investments have helped retain brand-loyal customers, contributing to economic resilience amid macroeconomic volatility [4] - The airline plans to invest over $1 billion in customer initiatives, with a similar investment planned for 2026 [4] Market Position - JPMorgan analysts maintain an overweight rating for United Airlines, citing strong demand for international travel and premium products as key industry tailwinds [6] - The analysts expect trends to favor major legacy airlines over low-cost carriers in the medium term, benefiting United Airlines [6] Stock Performance - United's stock rose less than 1% after the earnings report and has increased approximately 55% over the last six months [6]