JonnyKnoxville
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United Airlines parent company UAL Corp. said Tuesday its second quarter net income more than doubled from a year ago due to fuller planes during the busy summer season, robust demand for international flights and lower costs.
United's earnings of $274 million for the April-June period, or $1.83 a share, handily beat analysts' average estimate of $1.39. It was the biggest quarterly profit in seven years for the Chicago-based carrier. A year ago, when it reported profit for the first time since 2000, its net income totaled $119 million, or 93 cents a share.
Revenue rose 2% to a record $5.21 billion. Revenue per average seat mile, a popular benchmark of the industry's performance, climbed 2%.
In mid-morning trading after United released its earnings, its shares rose $2.17 to $49.41.
"Our second-quarter results demonstrate solid performance momentum across the board," said Glenn Tilton, United chairman and CEO.
FIND MORE STORIES IN: Chicago | United | Revenue | US airline | Jetblue Airways
United kept 89.1% of its seats full in June, aided by healthy demand for air travel as well as recent cuts in capacity.
Its overall passenger revenues rose 4.5% as the company increasingly relies on its more profitable international network.
The company also cut its operating costs, which have been among the highest of any U.S. airline, by $177 million during the quarter. Its costs per average seat mile, excluding fuel and severance charges, fell 0.5%.
Its cash balance rose by $895 million to $5.1 billion. With cash on hand, the company may consider buying back shares to boost its stock price, says Jamie Baker, an analyst at JP Morgan. "While we do think it is more prudent to reduce debt further and prepare the company for the inevitable (future purchase of planes) and industry downturn that lies ahead, shareholder pressure for value-added transactions or financial engineering is growing too loud for management to ignore."
JetBlue Airways also said Tuesday that its second-quarter profit rose 50% to $21 million, or 11 cents per share, as the number of passengers grew. It fell short of analysts' average estimate of 12 cents, and its shares fell 22 cents to $11.08 in morning trading. Revenue climbed 19% to $730 million.
JetBlue, which cancelled 1,700 flights in February due to an ice storm, said it will slow its growth. It will take delivery of three fewer airplanes this year and will sell three planes from its current fleet. "Slowing capacity growth will allow us to strengthen our balance sheet and facilitate earnings growth," said CEO Dave Barger.
United's earnings of $274 million for the April-June period, or $1.83 a share, handily beat analysts' average estimate of $1.39. It was the biggest quarterly profit in seven years for the Chicago-based carrier. A year ago, when it reported profit for the first time since 2000, its net income totaled $119 million, or 93 cents a share.
Revenue rose 2% to a record $5.21 billion. Revenue per average seat mile, a popular benchmark of the industry's performance, climbed 2%.
In mid-morning trading after United released its earnings, its shares rose $2.17 to $49.41.
"Our second-quarter results demonstrate solid performance momentum across the board," said Glenn Tilton, United chairman and CEO.
FIND MORE STORIES IN: Chicago | United | Revenue | US airline | Jetblue Airways
United kept 89.1% of its seats full in June, aided by healthy demand for air travel as well as recent cuts in capacity.
Its overall passenger revenues rose 4.5% as the company increasingly relies on its more profitable international network.
The company also cut its operating costs, which have been among the highest of any U.S. airline, by $177 million during the quarter. Its costs per average seat mile, excluding fuel and severance charges, fell 0.5%.
Its cash balance rose by $895 million to $5.1 billion. With cash on hand, the company may consider buying back shares to boost its stock price, says Jamie Baker, an analyst at JP Morgan. "While we do think it is more prudent to reduce debt further and prepare the company for the inevitable (future purchase of planes) and industry downturn that lies ahead, shareholder pressure for value-added transactions or financial engineering is growing too loud for management to ignore."
JetBlue Airways also said Tuesday that its second-quarter profit rose 50% to $21 million, or 11 cents per share, as the number of passengers grew. It fell short of analysts' average estimate of 12 cents, and its shares fell 22 cents to $11.08 in morning trading. Revenue climbed 19% to $730 million.
JetBlue, which cancelled 1,700 flights in February due to an ice storm, said it will slow its growth. It will take delivery of three fewer airplanes this year and will sell three planes from its current fleet. "Slowing capacity growth will allow us to strengthen our balance sheet and facilitate earnings growth," said CEO Dave Barger.
