United Airlines posts higher profits and buys used Boeing 737s as Max grounding drags on

Earnings

A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport on March 13, 2019 in Burlingame, California.

Justin Sullivan | Getty Images

United Airlines Holdings’ on Tuesday reported second-quarter earnings that topped Wall Street’s expectations, sending shares up more than 1% in postmarket trading.

The Chicago-based airline posted adjusted earnings per share of $4.21, above the $4.09 a share analysts polled by Refinitiv were expecting. Revenue for the quarter ended June 30 came in at $11.4 billion, slightly higher than the $11.36 billion analysts had forecast.

Executives from the second-largest U.S. carrier will hold a call with analysts on Wednesday at 10:30 a.m. ET, when they are likely face questions on how the grounding of the Boeing 737 Max is affecting its operations and its bottom line. The carrier did not break out costs associated with the grounding in its quarterly report.

The planes have been grounded worldwide since mid-March on the heels of two fatal crashes — one in Indonesia in October and another in Ethiopia in March — that killed a total of 346 people.

United has 14 Boeing 737 Max 9 planes in its fleet and last week said it was extending cancellations due to the grounding through early November. 

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *