United Raises Q4 Revenue Guidance Above Analyst Estimates
United projected fourth-quarter revenue above roughly $18.48 billion, compared with analyst estimates of about $18.29 billion. It also forecast faster unit revenue growth and slower unit-cost increases excluding fuel. Other airline shares rose alongside United.
Airline shares are climbing Wednesday, following United Airlines’ above-estimate fourth-quarter revenue outlook. The carrier expects revenue of more than approximately $18.48 billion, compared with analysts’ estimate of about $18.29 billion. United also expects unit revenue growth to accelerate from the third quarter and unit costs excluding fuel to rise more slowly, pointing to stronger-than-expected air-travel demand. Other airlines are also trading higher, including Delta Air Lines, American Airlines, Southwest Airlines and Frontier Group Holdings.
All five carriers had advanced Tuesday. Crude futures fell 1% to below $97 a barrel, helping airline shares. Trading Economics linked the decline to an unverified report that Qatar and Pakistan had proposed restarting talks to end the Iran Cheaper crude can benefit airlines quickly because fuel is one of their largest expenses. United Airlines is among the industry’s biggest carriers, making its results a gauge of broader sector conditions.
Key questions include whether travelers continue paying more for premium seats and whether airlines can pass higher costs on to customers. A confident outlook from United could point to durable demand and pricing power that other carriers may share. Airline shares were higher. At the time of publication on Wednesday, Frontier was up 6.33% at $5.21, United Airlines had gained 6.88% to $104.50, American Airlines was up 3.80% at $12.57, Southwest had risen 2.57% to $40.67, and Delta was up 3.22% at $79.13, according to Pro.
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