Investing.com – United Airlines on Tuesday raised its guidance for the full year despite reporting mixed third-quarter results as revenue fell short of estimates.
The airline raised its forecast for full-year earnings to a range of $11.25 to $12.25 a share, up from its previous forecast of $10.50 to $12.
United of $4.07 a share, above consensus estimates from Investing.com of $3.96 per share. Revenue of $11.38 billion was slightly below estimates of $11.41 billion. That compared with earnings of $3.06 a share on revenue of $11 billion in the same period a year earlier. The company had reported earnings per share of $4.21 on revenue of $11.4 billion in the previous quarter.
The stock edged up 0.7% in after-hours trading.
Third-quarter passenger revenue per available seat mile (PRASM), a key measure of growth for carriers, increased 1.7% year over year in the quarter, during which the company had to contend with a number of headwinds, including the ongoing civil unrest in Hong Kong and the grounding of the Boeing (NYSE:) 737 Max jets.
The Boeing 737 Max planes have been grounded globally since mid-March following two fatal crashes. The grounding of the much-maligned jets has proved bittersweet for carries like United that fly the jets. Thousands of flights have been canceled each month, but that has open the door for the carries to hike up airfares.
“While headwinds affected the sector as a whole this quarter, United’s team once again demonstrated a robust ability to overcome adverse cost pressure, managing to continue growing our network while investing in winning our customers’ loyalty through smart enhancements to the United experience,” said Oscar Munoz, CEO of United Airlines.
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