In another bit of good news for the airline sector, UAL Corp. (NASDAQ: UAUA) said earlier today that third-quarter profit rocketed almost 76% higher on a year-over-year basis to $334 million, or $2.21 per share. Excluding items, the parent of United Airlines (the country's number-two carrier as measured by passenger traffic) would have banked $295 million, or $1.96 per share, topping Wall Street's consensus expectations by eight cents. Revenue rose 6.8% during the reporting period to $5.53 billion. This number also exceeded the consensus outlook, which came in at $5.36 billion. Revenue per available seat mile (money earned for carrying one passenger one mile) moved 8.2% higher in the quarter.
In a statement posted by the Associated Press, UAL Chairman/CEO Glenn Tilton noted that "We delivered excellent results this quarter driven by fundamental improvements across our core business." According to Dow Jones, the company benefited by adding international flights and reducing domestic seat capacity by 4.6% on mainline routes. Increasing demand allowed for an across-the-board lift in ticket prices, which helps offset record-setting fuel costs endured by all airlines.
For the fourth quarter, UAL expects costs (excluding fuel) to total between 8.03 cents and 8.07 cents per seat mile.
The stock has jumped up more than 5.5% this afternoon, hitting its highest point since January. The shares have been in uptrend mode since early May, gaining nearly 60% along support from their 10-week and 20-week moving averages.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
The stock has jumped up more than 5.5% this afternoon, hitting its highest point since January. The shares have been in uptrend mode since early May, gaining nearly 60% along support from their 10-week and 20-week moving averages.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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